Ghana Stock Exchange Poised for Continued Growth in Second Half of 2024″
Stocks on the Ghana Stock Exchange (GSE) are expected to continue their strong performance into the second half of 2024, driven primarily by non-financial stocks and a recovering financial sector.
The GSE-Composite Index (GSE-CI) has already outperformed expectations, reaching 4,490.80 points by mid-year, representing a 43.47% year-to-date gain.
Databank Research attributes this positive outlook to the stability provided by Ghana’s successful International Monetary Fund (IMF) programme, which has bolstered investor confidence and fostered a favorable earnings growth environment across various sectors.
The banking sector, in particular, is projected to benefit from a robust earnings recovery. Following the Domestic Debt Exchange Programme, banks are expected to capitalize on favorable yields from short-term treasury securities, helping to preserve capital and stimulate demand for banking stocks.
In the first quarter of 2024, the sector posted a 53% year-on-year growth in net profits, driven by a 31% increase in interest income and a 42% rise in investment securities.
In the non-banking sector, Benso Oil Palm Plantation (BOPP) is expected to lead gains due to its strong performance and generous dividend policy, which has propelled its stock to an all-time high of GH¢23 per share.
Analysts believe BOPP still has significant growth potential despite the recent gains, with investor confidence remaining strong.
As the year progresses, the GSE-CI is expected to close around 4,380 points, reflecting a 40% increase, though some volatility and profit-taking may occur as the elections draw nearer.
