The World Bank’s optimism about prospects for Ghana’s economy has proved a tonic for Accra-traded stocks: the country’s benchmark index sits atop the world as January draws to a close.
The Ghana Stock Exchange Composite Index has gained 19 percent since the year began in dollar terms, the most among benchmarks tracked by Bloomberg.
“We can’t discount the sentiment factor, the optimism in the market in terms of Ghana being one of the fastest-growing economies,” Karl Ocran, head of investments at Accra-based Frontline Capital Advisors, said by phone. Investors are attracted by strong economic growth and stabilizing inflation. “Valuations on the market are still cheap,” he said.
Ghana’s economy will probably grow 8.3 percent this year, the fastest in the world, the World Bank said in a report earlier this month. The central bank foresees inflation in a band of 6 percent to 10 percent by the end of the year, down from 11.8 percent in December.