MD of GSE explains why Ghana’s bond market is doing well

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.”

Source: 3news