The Ghana Stock Exchange (GSE) with an annual return of 14.62 percent for investors ended the first quarter of this year as the best performing stock exchange on the continent.
The stock market’s impressive performance translates into an improved market capitalization of Ghs 57.16 billion as at end-March 2021.
Nine (9) companies for the first quarter appreciated in value as compared to other five companies that lost value in their shares.
MTN Ghana was the biggest gainer, appreciating in stock value by 32 percent followed by Soceite Generale (17.19 percent) and Total Ghana (11.3 percent).
The biggest loser was Unilever Ghana Limited with a year-to-date depreciation of 26.95 percent.
On the continent, the Johannesburg Stock Exchange (JSE) with an annual return of 12.03 percent was the 2nd best performing stock market.
The Namibia Stock Exchange placed third with 8.12 percent annual returns.
Cedi the best performing currency in Africa
The Ghanaian cedi also ended the first quarter of this year with a year-to-date appreciation of 0.6 percent against the US dollar making it the best currency among the currencies of 15 important African countries such as the Egyptian pound, Nigerian naira and South African rand for Q1 2021.
The performance of the cedi is believed to have benefited from growth in diversified exports, particularly gold and cocoa; the impact of covid-19 which has slowed down global economies and the BoG’s weekly forex interventions.
Ghana cedi 0.55%
Egyptian pound 0.18%
Nigerian naira 0.00%
Tanzania shilling 0.00%
Kenya shilling -0.31%
The cedi, as forecasted by Databank Research, is expected to witness an average end-year depreciation of Ghs 6.18 pesewas by the end of this year.
The forecast by Databank, follows expectations that the cedi will replicate its sterling performance against the dollar in 2020.
The cedi last year, cumulatively depreciated against the dollar by 3.9 percentage points making it one of the best-performing currencies in Africa.
