Question

The year 2019/2020 witnessed a pandemic that has disrupted life and the normality of living. Man’s existence has been threatened by COVID-19, a disease caused by the SARS-CoV-2 virus, spreading rapidly across continents, killing thousands and leaving cities desolate. The disease presents a range of complications from severe respiratory disorders, endangering the lives of people with underlying health issues to asymptomatic persons showing no symptoms. To curtail the spread, cities were put under locked down, face-to-face schooling replaced with online learning, social gathering cancelled and workers asked to stay home with essential workers exempted.

This event, as disruptive as it may be has created several advantages and a learning curve for many households and businesses.

1. Discuss the effect of COVID-19 on the Ghana stock exchange market covering areas such as Market Capitalization, GSE composite index and Treasury securities

Answer 1

Effect of covid-19 on would be-

A.there is shrinkage In overall market capitalisation of the Ghana stock exchange because there is a stock market crash due to emergence of covid-19.

B.there has been a high level of uncertainty All around The stock markets and there is no clear momentum

C.investors are preferring treasury bills and bonds because they are considered highly risk free securities in this conditions

D.composite index has significantly corrected due to fear of an impending recession into the overall economy.

It can be summarised that there is a a environment of complete choas because of an impending recession fear and people are highly defensive and not investing into equity