Ghana Stock Market yet to respond to 2016 elections outcome

Sat, 17 Dec 2016 Source: starrfmonline.com

A week after Ghana’s Electoral Commission (EC) declared the presidential nominee of the New Patriotic Party (NPP), Nana Akufo-Addo as the country’s president elect, activities at the Ghana Stock Exchange (GSE) remain stable.

The GSE which provides market information on equities and bonds, regulations, listed companies among others, said that it was yet to experience the effect of the election.

“It is too early because we just had election one week ago but in other jurisdictions where this has happened the euphoria of a new government naturally brings in activities on the market,” the GSE’s Managing Director, Kofi Yamoah told Starr Business’ Osei Owusu Amankwaah in an interview.

He added the market will respond favourably if the macro economy framework is well managed.

“I will look at it from the context of economic background. If we get the economic background; interest rate, inflation rate all being favorable then we should expect the companies themselves to bounce back”.

The Stock Exchange for the second year running has recorded negative outlook because companies are not performing as ideally as they were expected to, according to Mr. Yamoah.

“It explains the fact that the equity market has been seriously down in 2016,” he stated.

Analysts have expressed hope that the change in government would bring about positive response on the stock market.

“Because interest rates are trending down, inflation is trending down, we expect to see a better 2017 going forward; on the back of the fact that, should interest rate continue to trend downwards, should inflation continue to trend downwards and we are able to maintain very much good stability as far as the foreign exchange is concerned, then I expect the companies that have been afflicted in this way to perform better going into the future,” said Mr. Yamoah.

Meanwhile, the fixed income market of the exchange saw some positive listing. They include, Bayport, Ghana Home Loans, Izwe Loan, Edendale Properties Plc. Government also issued its first domestic bond on the market.

Source: starrfmonline.com
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