GSE records -20.61% in dollar term for investors; places 10th in Africa

The Ghana Stock Exchange (GSE) has returned -20.61% in dollar term for investors since January this year. 

This ranks it 10th among 15 top stock exchanges on the African continent, but better than the Nigerian Stock Exchange.

The GSE Composite Index which measures the total value of all stocks on the bourse has however recorded -18.51% return in cedi term, so far this year.

The negative performance has consequently affected the total market capitalization.

 Investors have therefore lost about GHS4 billion, as the market capitalization has fallen to about GHS52.7 billion.

So far, only four out of 38 listed companies on both the main and the SME market have appreciated in value. They are Aluworks, Camelot, DASPHARMA and SIC. 

Interestingly, all the banking stocks have lost value in their shares with the hardest hit being Cal Bank.  Nevertheless, trading activities have been quite impressive.

Over one million worth of shares valued at more than GHS621 million however exchanged hands yesterday when President Akufo-Addo paid a courtesy call on managers of the exchange.

Head of Research at Databank, Alex Boahene is confident the market will bounce back soon despite the challenges.

“The covid pandemic is partly a factor. You are also talking about the election which is just around the corner. So all this investors are very concerned about the covid and also the elections that is around the corner. I think the sentiments will not change until in December”, he pointed.

“But in my view, I think that if we are able to have successful election in December, peaceful election which I believe we will then we are likely to see some renewed confidence in the market at the tail end of this year or early next year”, he added.

On the continent, the Malawi Stock Exchange is the number one in terms of performance, gaining 2.59% return for investors.

It is followed by the Tunisian TUNINDEX with a year-to-date return of -3.69 percent. 

The famous Johannesburg Stock Exchange is number nine ahead of the GSE with an annual return of -17.43%.

The Namibia Stock Exchange and Mauritius Stock Exchange are the worst performing stock markets on the African continent with year-to-date of -29.41% and -33.43%.

Source: myjoyonline

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