Databank Research: GSE to rebound with 12% gain in 2023
The Ghana Stock Exchange (GSE) has had a tumultuous few years, with the market ending 2022 as the worst-performing stock market in Africa. However, according to a recent report by Databank Research, the market is expected to rebound in 2023 with an estimated annual gain of 12% (±500bps).
The report suggests that investors will be looking for stocks of high-quality companies with good fundamentals, defensive quality, and reasonable pricing power. These stocks are expected to provide investors with consistent dividends, which is always an attractive proposition.
Among the companies that the report suggests investors will favour are MTN Ghana and the Oil Marketing Companies, both of which are well-established companies with solid fundamentals. In addition, agro-processing firm Benso Oil Palm Plantation (BOPP) is expected to do well, continuing its history of good dividend payouts.
It’s worth noting that the GSE has already recorded a positive return of about 1.46% in cedi terms this year. However, due to the year-to-date loss of the cedi to the dollar, the exchange has recorded a negative return in dollar terms.
Despite the challenges faced by the GSE in recent years, the report suggests that the market is set to rebound in 2023. This is good news for investors who have weathered the storm and held on to their investments. While it’s always wise to be cautious and take predictions with a grain of salt, the positive outlook for the GSE is certainly a welcome development.
It’s important to note that the GSE is an important contributor to Ghana’s economy, providing access to capital for companies and individuals alike. A strong and healthy stock market can help to drive economic growth and create jobs, so the expected rebound in 2023 could have a positive impact on the wider economy.
The report by Databank Research suggests that the Ghana Stock Exchange is set to rebound in 2023, with an estimated annual gain of 12%. Investors are likely to favour high-quality stocks with good fundamentals, defensive quality, and reasonable pricing power, with MTN Ghana, Oil Marketing Companies, and Benso Oil Palm Plantation expected to perform well. While it’s always wise to be cautious, the positive outlook for the GSE is certainly a welcome development for investors and the wider economy.
