Ghana stock exchange half year performance among Africa’s top markets

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Investors on the Ghana Stock Exchange have reaped good dividends in the first half of this year with returns in the region of almos 60 per cent, putting the bourse among Africa’s top stock markets.

The GSE All-Share Index, the benchmark measure of performance of the bourse, moved up from 6,718.88 points at the beginning of January to 10,346.30 in June, representing a half year gain of 56.77 per cent, compared with a gain of 5.76 per cent for the same period in 2007.

The Ghana News Agency reported that the gain in the index at the half-year stage is above the prevailing annual interest equivalent on 91-day treasury bills of 1 6.3 per cent at the end of June, 2008. It is also above the June 2008, 12-month inflation rate of 18.41 per cent.

Officials of the GSE believe that with the automation project almost complete, the gain so far made would be sustained and even improved.

“With the GSE automation project complete, it is expected that there will be increased trade volumes, better price recovery and transparency in the market. All these are expected to deepen the market and impact positively on its performance. ”

Market activities were generally upbeat with most companies recording significant capital gains.

Liquidity was also on the high side as demand and offers for shares assumed appreciable levels compared to the previous year.

Market capitalization rose from GH¢12,513.05* million in January to GH¢15,587.76 million at the close of June, an increase of GH¢3,074.71 million due mainly to increases in share prices of most of the listed companies.

Traded volumes during the 124 trading sessions for the period were 189.08 million shares valued at GH¢196.53 million compared to 135.85 million shares valued at GH¢78.61million for the first half of 2007.

The increases represent 36 per cent in volume and 150 per cent in value terms over the six months.

*[1.00 GHS = 0.961538 USD]

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