Trading data from the Ghana Stock Exchange (GSE) indicates that about 12 companies have so far registered growth in their values and their market capitalization. At the end of January 2017, 10 companies have rather increased in value.
The market capitalization of all 43 listed firms stood at GH¢52. 69 billion at the end of December 31, 2016 whilst the GSE Composite Index stood had increased by 6.35 percent since January 1, 2017.
The biggest gainer was Cocoa Processing Company (CPC) which has gained one pesewa in value, about 50 percent increase to trade at 3 pesewas per share on the Accra Bourse. CPC has been struggling in the last couple of years but recent upgrade in operations brought some hope for investors.
UT Bank, Ecobank Transnational Incorporated, SIC Insurance, GCB and Societe Generale have all increased their share prices on the market, thus translating into growth in their market capitalization. Their share prices have gone up by 33.3, 30, 25, 23.60 and 20.97 percent respectively to sell at 4 pesewas, 13 pesewas, 15 pesewas, GH¢4.40 and 75 pesewas per share respectively.
The rest of the gainers are Total, BOPP, Ecobank, GOIL, Stanchart and Unilever Ghana Limited. They have recorded 18.18, 6.25, 9.53,6.36, 9.69 and 4.0 percent respectively to trade at GH¢2.34, GH¢2.21, GH¢7.01, GH¢1.17, GH¢13.36 and GH¢8.85 per share respectively.
Historically, the stock market performs well anytime the economy thrives or there is confidence in the economy. However, there have been some instances that the market did not correlate with economic performance.
Out of the 43 firms trading on the GSE, 36 are trading on the main market.
The GSE recorded a negative 15.33 percent return for investors in cedi term for last year. This was against a negative 11.23 percent return for investors in 2015.
The weak performance of the Accra Bourse was attributed to largely low investor interest due to challenges in the Ghanaian economy and some price corrections on the market.
The GSE Financial Stock Index registered 19.93 percent for investors in Cedi term.
The market capitalization of the 43 listed firms stood at GH¢52. 69 billion at the end of December 31, 2016
Fanmilk, ADB which listed in December and HORDs listed on the SME market were the best performing stocks during 2016.
The Finder