Ghana stock markets show mixed results after a rebound in investors’ confidence at the start of the new year as benchmark indexes perform differently this week.
On the Ghana Stock Exchange, the composite index slipped 0.09 percent from 1969.02 points at the end of last week to 1967.24 points this week, losing 1.78 points.
The financial stock index, on the other hand, has seen steady increases since the beginning of the year gaining approximately 0.32 percent to settle at 1795.32 on the local bourse as against previous week’s 1789.66 points.
However, both indexes maintained positive returns for investors with the composite and financial stock indexes recording a year-to-date return of 1.32 percent and 0.7 percent respectively.
This follows after investors endured negative returns from the exchange last year with the benchmark indexes recording year-to-date losses hovering around negative 13.9 percent to close the year 2020.
With an upsurge in coronavirus cases, there are fears that the stock markets may not produce expected returns for investors, however, in recent weeks amid the optimism that coronavirus vaccinations will pave the way in coming months for the economy to escape from the pandemic’s grip, markets are likely to pullback strongly.
Markets have risen despite spikes in cases with an improvement seen in total market capitalization surging to about GH¢54.71 billion, largely influenced by gains in the financial services sector, information and communication technology services, energy and other sectors which were kept in check and more resorted to amid the global crises.
MTN Ghana stocks keep soaring high attaining the feat of both volume and value leader, making a total volume addition of 2,300,450 and value of GHS1,541,186 at the price of GHS0.67. GCB Bank, Societe Generale Ghana, and Ecobank Transnational Incorporated (ETI) also had a strong showing recording share prices of GHS4.1, GHS0.72,GHS0.08 following after MTN Ghana in that order. The energy sector cannot be left out with Ghana Oil Company Limited (GOIL) performing considerably well.
Going further, it is anticipated that trading activity is going to continue to boom on the local bourse until the end of the year which will further increase investor confidence in the year 2021. The Ghana stock market is on the edge of erasing major economic hardships emanating from the coronavirus pandemic, affecting the livelihood of individuals and businesses.
Despite the improvement in the economy and vaccine optimism, however, the economy is still hobbling as we are yet to attain pre-pandemic levels whiles there are fears that the resurgence of the virus seems to be more delicate than before.
With current rebound in investors’ confidence as evidenced in various financial markets, this shows some prospects going forward in the Ghanaian economy but uncertainties continue to remain in the market as the novel coronavirus still exists with its accompanying economic mishaps.
Also, inflationary pressures and the cedi’s performance against other currencies is also supposed to be taken into account as analyst have predicted a depreciation of the currency by the end of the year.
