The Ghana Stock Exchange (GSE) has emerged as the best performing stock market on the African continent for the first half-year with 36.13 percent on annual returns to investors in dollar terms. This was far above its peers on the continent.
Comparing last year’s performance of the Ghana Stock Exchange to this year’s, last year’s performance was poor. However, the impressive performance of the market translated into an improved market indices at end of the first half-year which started from January and ended in June.
Stock Market Performance in Africa
Meanwhile, on the continent, the Ugandan Stock Exchange (USE ASI) was the 2nd best performing stock market with a 19.39 percent annual return to investors, whilst the Kenya Stock Exchange (NSE ASI) placed third with 15.55 percent annual return to investors.
In addition, other top stock performers are the South African Stock market (JSE ASI), Namibia Stock Exchange (NSX 01), Morocco Stock Exchange (MASI) and the Zambia Stock Exchange (LUSE ASI) with the annual return on investment being 14 percent, 11 percent, 10.99 percent and 10.42 percent respectively.
Moreover, the impressive performance of the market also led to an improvement in market capitalization. The current market capitalization of the Ghana Stock Exchange as at last Friday stood at GH¢61.3 billion. Market caps are mostly used by investors to determine the worth of various companies listed on the stock exchange. Market capitalization is the correct measure to look at, as it represents the true value as perceived by the overall market.
Moreover, some analysts revealed that the performance of Ghana’s economy coupled with the response to COVID-19 pandemic by government compelled investors to shift their interest to the Ghana stock market. Meanwhile, the Ghanaian economy expanded by 3.1% in the first quarter of this year.
Performance of Major Equities on the Ghana Stock Exchange
In all, 12 companies listed on the Ghana Stock Exchange appreciated in value as against six losers as at the end of the first-half of the year 2021.
Unsurprisingly, MTN Ghana is the most active trading stock on the GSE with several millions of shares changing hands since the beginning of the year. MTN Ghana was the biggest gainer on the Ghana Stock Exchange, recording about 87% of annual return to its shareholders for the first-half of the year. MTN Ghana is currently trading at 1.20 pesewas, far above its listing price which was at GHc0.56 in fifty-two (52) weeks ago. It has a market capitalization of GHc14.75 billion.
More so, other stocks that impressed during the first half of the year were Guinness Ghana Breweries (43.3%), Societe Generale (43.75%) and GCB Bank (33.33%).
However, some losers were Ecobank Transnational Incorporated (-25%) and Access Bank (-20.50%).
Meanwhile, analyst predicted that the Ghana Stock market will continue its bullish run till the end of the year despite the devastating effect of the COVID-19 pandemic on the economy.