After going through turbulent times in the last couple of years, the Ghana Stock Exchange has defied analysts’ expectation by becoming the best stock market in Africa in the first two months of this year.
Investors will be beaming with smiles as the Accra Bourse has returned 14.41% gain in dollar-term at the end of February this year.
The impressive run of the cedi is also a contributing factor as more investors show interest in the stock market because of getting more return than investing in the dollar.
In cedi term, the market (GSE Composite Index) has recorded 13.96 percentage points gain.
So far, nine companies have appreciated in value as compared to three losers. MTN Ghana is the biggest gainer with 29% appreciation in stock value.
It is followed closely by Cal Bank (15.94%), Soceite Generale (14.06%) and Standard Chartered Bank (11.28%). Importantly, the listed banks are profiting from the financial sector reforms which was a difficult one, but a necessary evil.
Again, MTN Ghana is the most active trading stock on the GSE with several millions of shares exchanging hands since the beginning of the year.
It is the hope that the market will continue its bullish run till the end of the year.
On the continent, the Johannesburg Stock Exchange is the 2nd best performing stock market with a year to date return of 10.66% in dollar term.
It is followed by the Nairobi Stock Exchange and the Egyptian Case with annual returns of 8.11% and 6.50% respectively.
The worst performing market is however the Ivorian BVRM with a return of -5.17%.
Banking and telecom stocks to be most exciting
Head of Databank Research, Alex Boahen, tells Joy Business banking and telecommunication stocks are the ones investors must watch out, going forward into the year.
“Broadly, the banking sector is looking very attractive at the moment. You can also talk about the telecom sector which is also a major beneficiary of net demand or the strong demand for network connectivity–so that also means they are likely to reap some benefit from the current condition where individuals and companies are working from home or learning and studying from home and the like — so the demand for network connectivity is actually going to help the telecoms sector to actually prop up their sales and also profitability”.
“Banks are better capitalized at this moment, unlike before and we have seen it clearly that Ghanaian banks were largely able to contain the shock [covid-19] that came with challenges. So banks are stronger, profitable and we think they will continue to grow”, Mr. Boahen emphasized.
- Joseph Opoku Gakpo: Adulteration of faith can’t be part of our educational curriculum
- 19 alleged national security operatives arrested for illegal mining in Atewa forest
- Man kills wife over sex; commits suicide
- I miss the days when NDC was in power – Gabby Otchere-Darko on #FixTheCountry
- Only Stonebwoy, Blakk Rasta can rival me in Ghana when it comes to speaking patois – Tamale Central MP
- British woman killed in Pakistan ‘after refusing to marry a man’
- Man allegedly hires thugs to inflict cutlass wounds on mother and son at Kasoa
- #FixTheCountry agitators have no leaders – Barker-Vormawor
- ‘FixTheCountry’: Don’t use Covid-19 to suppress peaceful assembly – Sammy Gyamfi
- Companies continue to export rosewood to China despite ban – Inusah Fuseini
Apply existing transport fares – Road Transport Operators tell drivers, passengers
Bright Yeboah: Protecting the legacy – Keeping Ghana in the global pineapple business
Yaw Adu-Gyamfi, Paulina Adjei: Making AfCFTA work for start-ups and innovation hubs in Ghana
Micronutrient deficiency in children need serious attention – Ashanti Regional Health Director
Demonstrate tenacity of purpose in your work – Asantehene urges Minister
Small scale miners warn colleagues against flouting government’s directives
Savannah Regional Minister visits victims affected by Damongo rainstorm
Deloris ‘Delay’ Frimpong-Manso lands influencer deal with Malta Guinness
A.M.E Zion students in Akwatia protest against people defecating in their classroom, campus
Bernard Nyarko’s family visits his grave to mark 1st year of his passing
Haatso Agbogba commuters cry to government to fix a 10-meter untarred stretch causing severe traffic
Pork shortage drives prices up in Navrongo
Government commissions secretariat to receive complaints on media harassment
Farouk Adams’ docket sent to Attorney-General, case adjourned to June 9
Man Utd face four games in eight days as Liverpool match rescheduled