The Bank of Ghana is predicting a recovery of the Ghana Stock Exchange in the coming months before the end of the year.
“The GSE-CI might recover marginally in the ensuing quarter as market risks and lockdown restrictions posed by the novel coronavirus might continue to ease in the ensuing quarter”, the Central Bank said in a report.
The GSE has been struggling since the beginning of the year, but it appears the market is doing relatively better now.
The GSE-Composite Index inched up after yesterday’s trading, reducing its Year-To-Date performance to -18.36%. However, it dollar return remained unchanged.
But the Central Bank is confident the market will rebound following recent investor interest in stocks.
GCB was the star performer for trading yesterday as a block trade in the counter culminated in 4,500,100 of its shares changing hands.
Consequently, the market marked the highest trade turnover in nine months with 4,670,100 shares, worth GH¢17.9 billion trading across eight counters.
The activity in GCB accounted for 96.36% of the day’s volumes and 96.36% of turnover.
This could be attributed to the expected announcement of Kofi Adomako as the Managing Director of the bank.
This could possibly push GCB share price up consistently in the coming days.
Q3 performance of the market
Stock market investors lost about GHS3.5 billion in the third quarter of this year.
As of the end of September, the market capitalization which measures the total market value of stocks stood at GHS53 billion.
As many as 17 out of the 37 listed companies have lost value in their share prices, whilst only five have gained value since January 1st. This is the third year running in which the market has been underperforming.
But, some analysts are hopeful the GSE could realise some gains in the last quarter of this year, following some steady moments in the last two months of the third quarter.