Ghana’s Capital Market: Any hope for 2016?

stocks-up-down.jpgIt’s necessary that the GSE embark on a public education drive early this year (2016) to create awareness about the Ghana Alternative Market (GAX) to get more businesses and investors on board to boost public confidence and strengthen the capital market.

Year 2015 was a very bumpy road for the GSE. The exchange didn’t see much of an excitement as a result of the many factors that befallen the economy translating into negative impacts on businesses across the landscape. Majority of persons who have invested on the market have seen their returns go down by almost 13 percent or even more in some cases. Both foreign and local investors were holding back strategically in anticipation of the right moment to invest their resources as a result of the unfavourable business climate hence depriving the GSE of the expected jolly ride.

The anticipated move by Bank of Ghana (BoG) to further tighten monetary policy if inflationary pressures do not recede as expected will have an impact on the investment environment this year (2016). Measures by government to broaden the tax base and enhance tax compliance, strengthening control of the wage bill and enhancing public financial management will also impact on local and foreign investors going forward.

That notwithstanding, the BoG’s preparedness to increasing resilience and addressing weaknesses in asset classification, as well as the prompt implementation of the new banking laws currently under review by Parliament is essential to safeguarding overall  financial sector stability.

In the nutshell, the investment climate is expected to enjoy some excitements especially in the financial and manufacturing sectors giving the current stable energy situation.

Please remember the value of investments can go down as well as up and you may not get back the amount you initially invested. If you have any doubts about which investment product is right for you please contact your financial adviser.

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