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Economy

Stocks respond slowly to falling T-bill rates

Trading on the Ghana stock market has been picking up rather slowly though treasury bill and interest rates in general have been declining. The situation is at variance with the usual trend where investors shift their attention to the stock market when treasury bills and other fixed income instruments drop in rates. The local stock market for instance has since 2006 been slow after the index went into the negative in 2005, despite the fall in the Treasury bill rate. Commenting on this development, the Head of Research at Databank Financial Institute, Daniel Ogbamey Tetteh explained that beyond the falling interest rates, investors were considering other factors such as expected dividends and earnings of the companies in relation to their market prices before increasing investment in stocks.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.