The Head of Research of Databank Doris Ahiati says Ghana’s Stock Market is currently unattractive to foreign investors due to exchange rate uncertainties.
According to her, the Ghana Stock Exchange will experience a foreign participation drought for about a year.
“For the next 12 months and beyond there are a number of investors outside the country who will not pick anything from the stock exchange,” Ahiati told host of Starr Business Analysis programme, Business Edition, Paa Kwesi Asare on Tuesday.
She added that investors are finding it difficult to ascertain an “acceptable level of certainty” of the currency stability and therefore are not ready to absorb the risk involved.
“Currently because of the challenges we have had with our currency we have a number of foreign investors who are not ready to look at Ghana at all,” she noted.
She is, however, optimistic that the currency will for the last quarter of the year continue to enjoy some relative stability.
“For the currency because of the inflow that we have received i.e. the COCOBOD as well as the recent Eurobond we should experience stability.
“When we say stability, we are not referring to a freeze but relatively we do not see the volatility that we recorded in the first three quarters of the year to reflect in the last quarter”.
By Osei Owusu Amankwaah