The Ghana Stock Exchange (GSE) is the worst rated Exchange on the continent of Africa in the first nine months of the year 2022, as the rapid depreciation of the local currency affected the local bourse to cling the last spot in dollar terms.
In the first 9 months, the Accra bourse recorded a negative return of 39 percent to Investors in dollar terms as at the end of September, 2022. However, the narrative was slightly different in cedi terms as the Ghana Stock Exchange registered a negative return of 11.80 percent for investors in cedi terms.
In all, there are fifteen (15) top bourse on the continent. In dollar terms, the GSE placed 15th out of 15 top stock exchanges in Africa. In cedi term, its position was 11th.
GSE Financial Stocks Index
The GSE Financial Stocks Index (GSE-FSI) also recorded -3.80 percent for investors, so far in 2022. Its financial index at the end of September stood at 2,053.76 points.
Moreover, the total market capitalization at the end of September 2022 declined considerably comparing to same period last year. The market capitalization at the end of September stood at GH¢63.9 billion, compared with GH¢64.49 billion recorded same period last year, 2021.
Meanwhile, 15 stocks lost value since January 1, 2022, compared with seven gainers.
SIC Insurance PLC was the biggest gainer, recording a 312 percent gain in value since January 2022. SIC began the year with a share price of GHS0.08 and has since gained 25 pesewas on that price valuation, ranking it first on the GSE in terms of year-to-date performance. It is presently selling at 33 pesewas per share.
Access Bank followed closely, registering 27.30 percent gain in value, selling at GH¢4.10 per share. Access began the year with a share price of GHS3.15 and has also since gained 95 pesewas on that price valuation, ranking it fourth on the GSE in terms of year-to-date performance.
Meanwhile, licensed buying cocoa firm, PBC, was the biggest loser, shedding 33% in value. As at the end of September, it was selling at 2 pesewas per share.
However, the performance of the GSE at the end of quarter three means that the local bourse continue to sink as months roll by.
It can be recalled that GSE recorded -24.13 percent return in dollar term for investors in first-half of 2022. This performance, though undesirable, was superior to the current one. At the time, this placed the country 12th out of the 15 top stock exchanges on the African continent.
That notwithstanding, this performance is far from last year’s achievement where the GSE was the second best performing stock market in Africa. The Ghanaian capital market has so far this year not been left out of the challenging economic environment. It was hit severely by the rapid depreciation of the cedi and the rising inflation in the first nine months of this year, and the situation continues unabated.
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