- The Ghanaian equity market has rallied significantly since the start of the year and as a result, our equity portfolio has returned more than 46.0%
- In our opinion, a relatively stable currency, a refocus on fundamentals and poor risk-adjusted returns in money market securities have supported bullish sentiments despite the fragile macro backdrop
- After such a rally, we admit that we are tempted to cash in our chips while we are ahead. However, being value investors, we still see some upside from current levels despite our view of a weaker macroeconomic outlook
- We see four key themes emerge as we look beyond 4Q2021?
- How sustainable is the rally and is there more upside in MTNGH?
- Can the new pensions regulations provide some support amid a decline in global liquidity?
- Consumption has improved due to successful vaccination rates but are our consumer stocks are overpriced?
- Banks will drive the next rally as asset quality improves and credit expands
- The market appears fully priced but we see plenty of interesting long-term themes and attractive opportunities where research-focused value investors can differentiate among winners and losers