GSE explains 2015 dip in returns

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December 18, 2015 3:22 PM

Authorities of the Ghana Stock Exchange have allayed fears of investors, assuring them that the performance dip is normal given the country's current economic performance.

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Returns on the Ghana Stock Exchange have fallen by 13% or more in 2015, causing an amount of fear and panic for investors on the bourse.

Banking stocks, for example, fall between 8- 10% in the middle of 2015.

The Exchange has not witnessed much excitement for investors since the beginning of this year.

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.

Managing Director of the Ghana Stock Exchange, Kofi Yamoah, told Joy Business the unfavourable business climate has impacted negatively on the local bourse.

“We have seen persistent energy challenges the country has gone through. We have seen scenarios where as far as the companies concerned – even for those in the financial sector – the performances from nine months [ago] to today have gone below their expectation,” he revealed.

According to him due to the unfavourable business climate both local and foreign investors had been dragging their feet in anticipation of a better time to invest, thereby robbing the Exchange of the necessary excitement.

He said the GSE will be embarking on a public education drive in 2016 to create awareness about the Ghana Alternative Market (GAX) to get more businesses and investors on board.

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