The Ghana Stock Exchange surrendered the top spot earned in the first half-year to end the just ended year 2021 as the second best performing stock in Africa. However, the Lusaka Securities Exchange of Zambia (LUSE ASI) emerged as the best performing stock in Africa.
In both dollar and cedi terms, the Ghana Stock Exchange ended last year 2021 as Africa’s 2nd best performing stock market. In dollar terms, the exchange recorded 38.59 percent return for investors, whilst investors enjoyed 43.66 percent gain in local term.
On the other hand, the Lusaka Securities Exchange sealed the top spot as the best performing stock market in Africa, registering a whooping 93.2 percent gain in dollar term and 52.21 percent in local term for investors.
In the similar vein, the Malawi Stock Exchange also emerged as the 3rd best performing stock in Africa, with a return of 32.24 percent and 40.05 percent in dollar and local terms respectively.
The Ghana Stock Exchange enjoyed one of its best runs in recent times last year, reversing three consecutive years’ losses.
During the first nine months of 2021, the Accra Bourse was the best performing stock market in Africa, until it was dislodged by the Lusaka Stock Exchange. According to experts, this could be due to the pressure on the local currency – the cedi.
Another factor that may be responsible for the GSE failing in the ending stages of the year, is the proposed electronic transactions levy (E-levy) that made a major stock such as MTN Ghana to lose its balance and started a losing streak that spans for many weeks.
Nevertheless, investor sentiments sustained the growth of the Ghanaian market as the bond market also witnessed remarkable growth despite the existence of COVID-19.
At the end of last year December, 2021, the market capitalization of GSE grew significantly to close the year at GH¢64.49 billion.
Best Performing Stocks in Ghana
According to the trading results, fifteen (15) stocks on both the main and SME Market registered gains in their market value, whilst five stocks recorded losses.
The best performing stock was Fan milk Ghana with a year to date gain of 270.37 percent. This was followed by Guinness Ghana Breweries Limited with year to date gain of 100 percent, while Enterprise Group Ghana emerged in the third position with a year to date gain of 99.29 percent.
However, the worst performing stock was Cocoa Processing Company with a year to date loss of 33.33 percent. It is still selling at 2 pesewas per share.
On the continent, the worst performing market was the Botswana Stock Exchange.
In the hindsight, African financial markets are feeling the effects of the pandemic, but there are reasons for optimism, especially with a new focus on greener financial products.
Absa bank with data from economic consultancy, OMFIF, the fifth annual African Financial Markets Index found that the average performance of the continent’s markets declined over the past year, due to poor liquidity.
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