SOME 20 out of about 35 firms listed on the Ghana Stock Exchange (GSE) have registered losses in their share values since January 1, 2019.
It has subsequently reduced the market capitalization of the Accra bourse to GH¢56.89 billion as at September 16, 2019, from GH¢61.6 billion in January 1, 2019. This means that investors have lost about GH¢4.7 billion in equity.
Only six stocks recorded gains while the remaining listed entities have seen no change in their share price since the beginning of the year.
6 losers are banking stocks
Six of the losers are banking stocks which hitherto would have fared better. Three of the gainers are also banking stocks.
This unprecedented loss is mostly attributed to the challenges in the financial sector which culminated in reforms by the Bank of Ghana.
Many investors have lost funds due to the failure of some financial institutions under distress.
SIC Insurance lost 47.37%
According to daily trading results, the biggest loser was SIC Insurance which lost 47.37 per cent of its share value since the beginning of the year.
The insurance giant that collects about GH¢200 million premium annually has seen its share price reduced to 10 pesewas per share.
It is followed by Benso Oil Palm Plantation Limited (BOPP), GOIL Company Limited (GOIL) and Fanmilk which have since January 1, 2019 lost 41.06, 35.90 and 35.88 per cent in share values respectively.
They are presently trading at GH¢3, GH¢2 and 13 pesewas per share respectively.
Other losers are Ecobank
Transnational Incorporated (ETI), the parent company of Ecobank Group (31.25 per cent), Access Bank (28.17 per cent), Enterprise Insurance (22.32 per cent), Republic Bank (20.29 per cent), Stanchart (19 per cent), Guinness Ghana Breweries Ltd (GGBL), 17.43 per cent, Agricultural Development Bank (ADB), 14.96 per cent and CAL (13.27 per cent).
The rest are Total (11.47 per cent), MTN (11.39 per cent), Mechanical Lloyd (10.0 per cent), Camelot (10.0 per cent), PZ Cussons (4.88 per cent), Societe Generale (6.67 per cent) and AngloGold Depository Shares (2.40 per cent).
Trust Bank Limited of The Gambia was the best performing stock recording a year-to-date return of 73.91 per cent.
Pharmaceutical manufacturer, Ayrton Drugs followed with a return of 14.29 per cent. Ecobank followed suit with a return of 5.33 per cent.
Other gainers are GCB Bank (6.52 per cent), and Starwin Ghana (5 per cent).
GSE Composite Index
The GSE Composite Index which measures the value of the market listing has registered negative 12.7 per cent return for investors since the year began whilst the Financial Stock Index had recorded negative 10.75 per cent return.
In terms of market activities, ETI recorded the biggest trading volume of 3.4 billion shares and value of GH¢349 million.
MTN followed with about 125 million of volume of shares traded whilst the value traded was GH¢89.4 million.
Analysts do not expect an immediate rebound of the stock market.
They however, believe the market will pick up slowly for the rest of the year.
The GSE is the fifth best performer among six popular stock markets in Africa, trailed by the Nigeria ASI.
Egypt CASE 30 recorded the best gain of 16.4 per cent on the continent.
Credit: The Finder
(By Augustine Amoah)