Investors can expect good returns as companies on the Ghana Stock Exchange (GSE) are expected to continue with their performance this year, a report by Bloomberg has said.
The report sees the Ghana Stock Exchange as growing by 33 percent, making it the best world performing stock exchange so far in 2018.
The performance according to Bloomberg is due to government decision to transfer 690 million dollars in December to private pension funds.
According to Bloomberg, the injection of cash from private pension funds drove the 33 percent surge in Ghana’s benchmark stock index this year, making the GSE the world’s best-performing equities.
Commenting on the report, Investment Banker, Mahama Iddrisu pointed out that the performance demonstrates a vote of confidence in the private sector.
“For the stock market to perform up to 34 percent, this tells us that the stock market will be good this year,” he said.
Mr. Iddrissu was of the view that a number of factors may have contributed to the good performance in just a month.
“The performance may be due to the economic fundamentals, and also it could be because the pension funds are allowed to invest, or probably the investment environment in Ghana is encouraging investors. It could also be the cyclical form that the market goes through where prices go up at a certain time and come down at particular period,” he stated.
He maintained that all factors point to a general confidence on the part of investors who see the period as being productive for the private sector.
He was of the view that the trend may continue for a while depending on signals sent by government in partnering the private sector to expand their operations.
Source: Footprint to Africa