Mr. Kwabena Nyarko, a Financial Market Expert and the CEO of Pipliquidator Fx, has stated that despite the Ghana Stock Exchange’s (GSE) poor performance from the beginning of this year up to the 3rd quarter, the local bourse will bounce back in the last quarter of the year, and will largely be driven by system liquidity.

Mr. Nyarko made this known in an exclusive interview with the Vaultz News in response to the reports of the local bourse being the worst performing Exchange on the continent of Africa for the first three quarters of the year, 2022. According to the equity analyst, some aggressive stocks have higher potential for higher returns; he thus, tipped them to be the propeller for this quarter’s predicted bull market.

“As investors begin portfolio rotation, some aggressive stocks in the financial sector and the telecommunication sector have the potential for higher returns. I expect them to perform massively in this final quarter of the year in spite of the current economic turmoil the country finds itself.

“There is no doubt that investors will likely take a cautious approach in their participation in the equities market this quarter as the government strives hard to resuscitate the economy. It is also my expectations that one of the key drivers of the market in this quarter will be system liquidity, with maturities of government securities dictating its trajectory.”
Mr. Kwabena Nyarko

Top Picked Performers

A look at the top pick by the CEO of Pipliquidator Fx, revealed, MTN Ghana, Access Bank PLC and SIC Insurance PLC as the possible equities to lead the charge in this final quarter of the year. “These stocks and others have a higher potential and are likely to be the main potential drivers in the local market as the market winds up… They are more likely to yield higher returns for investors going into the fourth quarter”.

Mr. Kwabena Nyarko observed that though government’s decision to seek bailout from the International Monetary Fund (IMF) breastfed some modest bullish streak into the local bourse as the benchmark index saw some improvement at a point, it was not enough to prevent the Ghana Stock Exchange from trailing behind its peers on the African continent.

“The gains slowed again along the way as investors appeared to have already lost confidence in most of the stocks owing to the bad performance of the economy.

“Given this, the gains faded away as investors began to sell off positions in the equities market in a bid to take some profits off the table. The preference for profit-taking was further boosted by negative surprises from a number of large-cap stocks in the telecommunication sector.”
Mr. Kwabena Nyarko

Moreover, Mr. Kwabena Nyarko added that rumours of the expectation of higher yields in the fixed income market in the fourth quarter of the year further stoked bearish sentiments which resulted in the equities market losing out.

It can be recalled that Ghana Stock Exchange was rated as the worst rated Exchange on the continent of Africa in the first nine months of the year 2022, as the rapid depreciation of the local currency affected the local bourse to cling the last spot in dollar terms. In the first 9 months, the Accra bourse recorded a negative return of 39 percent to Investors in dollar terms. In all, the GSE placed 15th out of 15 top stock exchanges in Africa.