Only 3 out of 36 firms on GSE post growth
Only three out of 36 listed firms on Ghana’s Stock Exchange have since January 2016 registered growth in their share prices, The Business Finder reports.
The market capitalisation of the 36 listed firms on the main market has also shrunk from GH¢57.1 million as at January 1, 2016, to GH¢53.1 million as at Friday September 16, 2016.
Market watchers say the development is attributable to the economic difficulties of the country.
The unbridled borrowing by the government has also increased investor appetite for short-term securities, thereby depriving the Accra bourse of investor interest.
Fanmilk, GCB Bank and SIC are the only companies that had increased their share prices and subsequently boosted their market capitalization as at September 16, 2016.
They have since the beginning of this year registered 32.65,4.49 and 3.14 per cent increase in their market price to trade at GH¢9.75, GH¢3.97 and 15 pesewas per share respectively.
Their market capitalization stands at GH¢1.13 billion, GH¢1.04 billion and G! 1029.35 million.
Standard Chartered Bank preference shares also recorded some growth in its market price.
Eight out of the 11 financial stocks listed on (GSE) all registered negative returns thus losing millions of Ghana cedis in value since the beginning of the year.
Camelot, AngloGold Ashanti, Clydestone, Golden Web, Mechanical Lloyd, Pioneer Kitchenware, Sam Woode, Transaction Solutions and Societe Generale all registered no changes in their share prices.
UT Bank was the biggest loser on the Accra bourse as at Friday, September 16, with an annual return of 60.0 per cent and a market capitalization of GH¢13.6 million followed by Ecobank Transnational Incorporated (ETI), parent bank of Ecobank Ghana with a year- to-date of 40.74 percent and a market capitalisation of GH¢3.6 billion.
CAL Bank followed with an annual return of-22.0 percent and a market capitalization of'GH¢411 million.
Ecobank Ghana, HFC, Stanchart, The Trust Bank Gambia and Enterprise Ghana all recorded negative returns at the end of trading on Friday, September 16, 2016.
Their annual returns stood at 1.85 percent, 11.11 percent, 12.88 percent, 18.92 percent and 1.67 percent respectively. Their market capitalisations have also gone down drastically.
In the manufacturing sector, firms such as Guinness Ghana Breweries, Aluworks and Unilever lost market values. They lost 10.05, 7.14 and 0.24 percent respectively in their share price.
Mining and oil firms, Golden Star Resources and Tullow Oil have also not been left out of the problem. They have lost 2.01 and 2.88 percent in their share price as at Friday, September 16, 2016. They are presently trading at GH¢1.95 and GH¢27.2o per share respectively.
The GSE Financial Sector Index as at Friday, September 16, 2016, stood at 12.61 percent in cedi term.
However, the GSE Composite Index (GSE Cl) recorded 10.52 percent return in cedi terms.
All other stock exchanges in Africa have so far done better than the Accra bourse.
Egypt Case has registered a 13.9 percent growth in its market whilst Morocco-MASI has also recorded 11.9 percent growth in its market.
However, the Nigerian Stock Exchange and Kenya Stock Exchange recorded negative growths of 2.7 and 8.9 percent respectively but better than the GSE.