GSE records 16.31% return in first half of the year

GSE performance

After failing to post positive results in the last two years, the Ghana Stock Exchange continue on its track of recovering from previous losses. This is reflected in its performance in the first half of the 2017 year. At the end of trading session yesterday (30th June 2017), the GSE Composite Index inched up by 12.77 points to close at 1,964.55, representing a year-to-date gain of 16.31%. Likewise, the GSE Financial Stocks Index edged up by 11.5 points to close at 1,824.88, representing a year-to-date gain of 18.08%. Yesterday’s gains were made possible by six gainers and no losers. At the end of the trading session, Standard Chartered Bank Limited (SCB) led the gainers with 11 pesewas to close at GH¢17.04 per share. This was followed by Benso Oil Palm Plantation Limited (BOPP) and Ghana Oil Company Limited (GOIL), which gained 8 pesewas and 5 pesewas each to close at GH¢4.40 and GH¢1.87 per share respectively. Fan Milk Limited (FML) also gained 4 pesewas to close at GH¢11.82 per share while Enterprise Group Limited (EGL) and Ecobank Transnational Incorporated (ETI) both gained a pesewa each to close at GH¢2.39 and GH¢0.13 per share respectively.

In relation to the year-to-date performance of individual stocks, UTB bank lead with 133.33%, followed by BOPP (111.54%) and GOIL (70%) respectively. These are then followed by GCB (46.07%), SCB (39.98%), ETI (30%) and SOGEGH (20.97%). Others include CAL bank (16%), ALW (14.29%), SCB PREF (13.33%), TOTAL (12.12%), FML (6.1%), EGH (6.06%) and UNIL (5.76%).

Despite the overall positive results of the exchange, a few listed stocks posted negative returns in the half year. Notable of these stocks are Mechanical Lloyd Company Limited (-33.33%), HFC Bank (-26.67%) and Tullow Oil Plc (-22.10%). Other stocks with losses so far include Starwin Products Limited (-33.3%), Produce Buying Company Limited (33.3%), Ayrton Drugs Manufacturing Co. Ltd. (16.67%), PZ Cussons Ghana Limited (-9.09%), Guinness Ghana Breweries Limited (8.59%) SIC Insurance Company Limited (-8.33%), AngloGold Ashanti Depository shares (-7.69%) and Access Bank Ghana (-7.32%).

In the same period, a few stocks such as Agricultural Development Bank, Golden Web Limited, Cocoa Processing Company Ltd. and Clydestone (Ghana) Ltd. neither recorded a gain nor a loss.

A snapshot of Ghana Stock Exchange performance in 2016

GSE performance

The Ghana Stock Exchange recorded a negative growth in 2016 just as it did in 2015. The stock market posted a return of -15.33% in 2016, lower than its performance (-11.77%) in 2015.

Despite the overall loss, a few listed companies ended 2016 with positive performances. Fan Milk Limited, with an opening price of GH¢ 7.35 in January 2016, closed with a price of GH¢ 11.14 on 30th December 2016. This translated into a significant gain of 51.56%. Unilever Ghana Limited, which also started trading at GH¢ 8.5 in January 2016, closed the year at GH¢ 8.51, recording a marginal gain of 0.12%.

Agricultural Development Bank (ADB) and Access Bank Ghana (ABG), two newly listed companies on the bourse, also recorded some positive results. ADB started trading on the Ghana Stock Exchange (on 12th December 2016) with an opening price of GH¢ 2.65. It closed the year with a price of GH¢ 3.83. Similarly, Access Bank commenced with a price of GH¢ 4 (on 21st December, 2016) and ended the year with a closing price of GH¢ 4.1

On the other hand, many listed stocks declined in value. Out of these stocks that declined in 2016, UT Bank Ghana Limited (UTB), Ecobank Transnational Incorporated (ETI) and Total Petroleum Ghana Limited (TOTAL) were the worst performers.  At the end of 2016, the price of UT Bank’s stock declined by 70%. Similarly, the stock prices of ETI and TOTAL decreased by 62.96% and 61.18% respectively.

Other listed companies which recorded losses in 2016 were Ghana Commercial Bank (-6.07%), Ecobank Ghana Limited (-8.7%), HFC Bank Limited (-16.67%), Societe Generale Ghana Limited (-22.5%), Cal Bank (-25%) and Standard Chartered Bank Ghana (-25.28%). The rest were Tullow oil (-4%), SIC Insurance Company (-14.29%), Guinness Ghana Breweries Limited (-18.09%), Starwin Products Limited (-25%), Ayrton Drugs Manufacturing Company (-33.3%), PZ Cussons Ghana Limited (-35.29%) and Benso Oil Palm Plantation Limited (-16.80%).

Meanwhile, the Ghana Stock Exchange has started the present year (2017) with positive prospects. The year-to-date return, as of Friday, 20th January, was 4.16%.