The Ghana Stock Exchange (GSE) continues to show impressive performance recording 28.67% in growth in its overall Composite Index as at February 15, 2018.
The bullish run experienced by the equities market in in January, February and the whole of 2017 is set to continue unabated.
Recording a market capitalization of GH¢64,902.52 million on February 12 this year, with a composite index of26.44%, the performance has been seen as the highest in Africa, performing better than the Nigerian, South African and in the world.
Now significant gains on the GSE Composite Index also comes at the back of much higher trading activity recorded in 2017 by both Equity and Fixed Income markets.
According to data from the GSE, after two years of making consecutive losses, recording -15.33percent in 2016, the stock market bounced back positively by recording an impressive performance of the Composite Index rising by 890.63 points to 2,580 points year-on-year to post a return of 52.73percent.
The Financial Stock Index also recorded a gain of 49.51% in 2017 as against the -19.93% recorded in 2016.
Speaking to the B&FT the Managing Director of the Ghana Stock Exchange Mr. Kofi S. Yamoah said, the sterling performance, was due to improved economic fundamentals with a rapid decline in inflation, Treasury bill rates, a relatively stable cedi and investor confidence in Ghana.
“We are seeing the turnaround to positive gains on the Ghana Stock Exchange due to the removal of tax on capital gains on listed securities, investor confidence due to our good democratic credentials and Ghana winning its case against its neighbors Côte d’Ivoire in the maritime boundary dispute at ITLOS.
I can also say that, the visit of various heads of state, and world leaders including high profile businessmen and women to Ghana, also have played a major role in the Stock market improved performance. Remember the market is opened to not only residents in Ghana but even non-Ghanaians outside both residents or non-residents,” he added.
Mr. Yamoah further stated that, “the financial sector stocks are expected to record earnings growth in 2018 as the Ghanaian economy continues to recover. The improved asset quality of banks, coupled with the projected expansion in the economy, is expected to lead to an expansion in loan portfolios. This should positively impact bottom-line and growth for banking stocks.”
The total market capitalisation jumped by 11.6% from GH¢52.69billion in 2016 to GH¢58.8billion in 2017, with domestic capitalization recording GH¢16.24 billion in 2017 a 49.3% increase, against the GH¢10.88 billion recorded in 2016.
Total value of shares traded went by 114.1% from GH¢242.11million in 2016 to GH¢518.38million for the year under review, while the volume of shares traded in 2017 was 322.73 million representing a 27.7% increase from the 252. 83million recorded in 2016.
On bills, Notes and Bonds, the total trading recorded was GH¢28,713.7 million in 2017 as against GH¢15,599.1million representing 84.1% increase.
There were no new equity listings in the year under review but two additional equity listings were recorded bring to three the number of equity listings on the stock exchange.
Government of Ghana’s notes and bonds listings on the Ghana Stock Exchange is valued at GH¢16,895million at the end of 2017, including 40 new which were listed in the same year.
Total number of investors in both Equities and Debt securities on the Ghana Stock Exchange is almost hitting the one million mark, recording 976,068 in 2017.
Ghana Stock Exchange Composite GSE-CI is a major stock market index which tracks the performance of all companies traded in the Ghana Stock Exchange.
In 2017, the market saw the departure of DPI, a leading Africa focused private equity firm, from CAL Bank through the sale of its holdings to AriseBV from the Netherlands.
Leapfrog Strategic African Investments (LSAI) also paid US$130million to buyout Sanlam’s stake in Enterprise Group Ltd.
UT Bank was delisted from the bourse after the Bank of Ghana revoked the banking license. The GSE suspended the listing status of five companies: African Champion Industries (ACI), GoldenWeb (GWEB), Pioneer Kitchenware (PKL), Transaction Solutions Ltd (TRANSOL), and Clydestone Ltd (CLYD) following their inability to meet listing obligations.