The Ghana Stock Exchange recorded an over 50% growth of the local bourse in 2017 with 19 out of 38 companies listed recording gains in the last year while 10 companies recorded no price changes for the year, and the other 9 recording losses.
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A further analysis revealed that out of 11 banks listed, 10 of these recorded gains. According to Mr Kofi Kyei, an Associate Equity Trading and Marketing at UMB Stockbrokers, the gains can be attributed to, the drop in inflation experienced in 2017 coupled with a relatively stable foreign exchange market as compared to 2016.
Furthermore, the country’s Gross Domestic Product (GDP) grew in the year 2017. Another contributing factor is the increase in the value of the shares of the two banks taken over by the Ghana Commercial Bank (GCB) which soared by a whopping 40%. The stock price was also seen to go up from GHS 1.45 to GHS 5.05.
Stock market analysts are thus predicting a positive growth of the Ghana Stock Exchange for the first quarter of 2018. Mr Kyei shared his confidence as well saying banking stocks are still leading as a result of the minimum capital requirement imposed by the Bank of Ghana.