Ghana stocks rebound to become third best in Africa
The Ghana Stock Exchange (GSE) has shown a remarkable improvement in its performance from the beginning of 2023 to the end of August, ranking as the third-best-performing stock market in Africa.
The Composite Index (GSE-CI) experienced a substantial rally, reaching 3,084.79 points during this period – marking a 26.22% surge. The market capitalization surpassed GH¢73billion (~$6.4 billion).
This places the GSE just behind Nigeria and Egypt and represents a significant shift from the situation at the close of 2022 when the local market was the worst performer in the region.
The GSE rally can be attributed to a renewed interest in the equities market, driven by positive developments in the government’s efforts to fix a protracted debt crisis with the help of IMF’s $3 billion bailout package. Ghana, one of the world's biggest producers of both gold and cocoa and long seen as one of Africa's best-run countries, is suffering its worst economic crisis in a generation. The GSE remains on course to beat market expectations, but analysts say much more must be done to sustain growth in the face of cyclical hills and valleys.