Ghana Stock Exchange drops 13 places in performance index

The Ghana Stock Exchange (GSE), despite ending the first quarter of last year as the best performing bourse on the continent of Africa, has badly performed in the first quarter of this year, 2022.

The Ghana Stock Exchange emerged second to last out of the 15 ranked African Exchanges. The GSE is ranked 14th in Africa in dollar term.

However, the GSE bettered its performance in the cedi term by emerging as the 11th best performing Exchange in Africa in the local currency term. The Ghana Stock Exchange returned -16.96 per cent in dollar term to investors. On the other hand, the local bourse returned -1.67 per cent to investors in cedi term.

That notwithstanding, the Financial Stock Index of the Ghana Stock Exchange which comprises of the banking sector and insurance sector returned positive value.

The financial stock index achieved a return of 1.07 per cent for investors in the first quarter of 2022.

The market capitalization at the end of the 1st quarter of 2022 also stood at GH¢64.029 billion, which is a decline compared with the last quarter of 2021. In that quarter, the market capitalization stood at GH¢64.49 billion in December 2021.

According to the GSE quarterly report, eight stocks on both the main and SME Market lost value, as against six gainers in the first quarter.

SIC Insurance PLC was the best performing stock in the first quarter of this year. It recorded a 22 pesewas gain on its shares, representing a 175 per cent return for investors. Meanwhile, SIC began the year with a share price of GHS0.08. SIC has traded a total volume of 11.5 million shares valued at GHS 1.43 million in the first quarter, with an average of 182,745 traded shares per session.

On the other hand, Access Bank was the worst performing stock in the first quarter, losing 33.7 per cent in value since 1st January, 2022. Access Bank ended the first quarter at GHS2.09 per share on the Ghana Stock Exchange (GSE). However, Access Bank began the year with a share price of GHS3.15 but has since lost 33.7 percent off that price valuation in the 1st Quarter.

Performance On The Continent

On the continent, the best performing stock market in the first quarter was the Namibian Stock Exchange (NSX), returning 29.34 per cent to investors in dollar term. The South Africa Exchange (JSE-ASI) secured the second spot in the first quarter, returning 12.29 per cent to investors in dollar term. The Nigeria Stock Exchange (NGSE-ASI) came in the third position with 9.86 per cent return to investors.

Other notable performing bourse on the continent include: Zambia (LUSI-ASI) returning 6.70 per cent, Ivory Coast (BVRM) returning 6.30 per cent to its investors and Tanzania Stock Exchange (DSE ASI) with 2.06 per cent to investors, whilst the worst performing market on the continent trailing Ghana was the Egyptian Exchange. It also returned -19.07 per cent to its investors in dollar term.

The GSE ended 2021 as the second best performing stock market in Africa and whereas this current performance is in sharp contrast to that of last year, its early days yet to say the stock market will underperform this year given it has the second quarter, the third and fourth quarters to correct the wrongs and build on its performance.