Some stakeholders of the Ghana Stock Exchange (GSE) are hopeful the bourse will record good performance in this year’s activities due to growing enthusiasm in the capital market.
The GSE recorded negative performance in two consecutive years,— in 2015 and the 2016 periods.
But speaking to Citi Business News on the 2017 outlook of the bourse, a former Director General of the Securities and Exchange Commission (SEC), Dr. Adu Anane-Antwi was hopeful that the general mood of growth among the private sector due to the new government’s policies will turn things around on the market.
“I believe some of the policies of the government will help the market. For example some of the taxes that have been taken off will be a boost to the market. So if you put all together we can only hope that the market will respond with a positive signal,” he observed.
Reacting to some general forecast on this year’s activities on the stock market, Dr. Anane-Antwi was the view that the predictions could not be far from the expectations in the future.
He maintained that the market has always responded to the expectations of investors which always affect the performances of listed companies.
“If people are thinking that things are going to improve and there will be excitement, that is true, that is what people should expect. When you reduce taxes, when inflation is coming down, when interest rate is coming down it is good. All these affect the operations of companies,” he said adding that macroeconomic indicators have always influenced outcomes on the bourse.
“Sometimes interest rates go up such that there is nothing left for shareholders to enjoy. So if all the macroeconomic indicators come down then we believe that companies’ performance will improve,” he said.
Dr. Anane-Antwi urged all players on the stock market to take advantage of the goodwill and high expectations to improve activities on the stock market.