The Ghana Stock Exchange (GSE) equity market is expected to perform well in 2024 due to the improving economy, low market valuation, and increasing interest in equities.

According to a forecast by Databank Research, the Ghana Stock Exchange Composite Index (GSE-CI index) would rise further to close 2024 at around 3,756 points, translating into an annual gain of 20% (±500 basis points) in local currency terms.

It therefore expects banking stocks to fare better in 2024 as the financial sector continues recuperating from the aftermath of the domestic debt exchange programme.

“Banks are undergoing another round of recapitalisation. We expect them to become better equipped to absorb shocks and maintain financial stability, presenting a potentially profitable investment opportunity over the medium to long-term”, it added.

It also expects Ghana's telecom market leader MTN Ghana to continue to do well in 2024 as its favourable market valuation, strong financial performance, and consistent dividend payout continue to draw investor interest.

Despite the strong performance among consumer goods counters in 2023, it said “we foresee more capacity for these stocks to continue to do well in 2024, benefiting from the rebounding of the Ghanaian economy. We expect a relatively steady exchange rate and a sustained decline in inflation to enable the sector to consolidate the operational turnarounds achieved in 2023”.

It concluded that the oil marketing sector would perform well, benefitting from fuel demand amid favourable inflation and foreign exchange (FX) outlook.

GSE placed 10th in dollar terms in Africa in 2023

The GSE placed 10th in dollar terms among 15 stock markets in Africa in 2023.

It recorded a return of -5.66 percent for investors.

But for the about 15% depreciation of the cedi to the dollar, the Accra Bourse will have been classified among the top-performing stock markets in Africa in 2023.

In local currency terms, the GSE however placed 5th with a 28.0.8% return for investors.