The Managing Director of the Ghana Stock Exchange (GSE) Mr. Ekow Afedzie has said the buoyant trend witnessed recently indicates the confidence of investors in the local economy.
Ghana’s stock market has emerged as the best performing market on the African continent after it returned about 36% in dollar term for investors.
MTN Ghana (87.50%), Guinness Ghana Breweries Limited (43.33%), Soceite Generale (43.75%) and GCB Bank (33.33%) are the best performing stocks on the stock market so far this year.
Mr Afedzie attributed this significant performance to the prudent measures introduced by the exchange while speaking in an interview with TV3’s Etornam Sey on the Business Focus on TV3 Monday July 5
“It just tells you that investors are beginning to have some confidence in the market and therefore the market is is beginning to do well.
“A few things have happened. Generally speaking, as an exchange we set up three markets. We set up what we call the main equity market which deals with shares of the big companies like Unilever, Standard Chartered.
“Then we set up what we call the alternative market for the small medium size companies.
“Then we set up the bond market six years ago to deal with all the fixed income securities, securities where you buy and they tell you will get an interest every six months or so.
“And the country as a whole has gone through some turbulent times as a result of the COVID then people started looking out for where they can put their money that is safe. So they started looking at the bond market which is virtually risk free market.
“That is why you see the bond market growing very well. More people were channeling their investments into the bond market mainly the government securities. Then a few people realized that the securities on the market or the companies listed on the market are also doing very well.”
By Laud Nartey|3news.com|Ghana