By Kofi Ahovi
Performance of the Ghana Stock Exchange (GSE) rebounded in August with renewed investor interest bolstered by continued deepening of macroeconomic stability and further declines in interest rates. This occurred after the GSE ended June and July 2010 down with profit taking activities and selling pressures as well as concerns over earnings performance of some of the listed companies,.
Market turnover during the first eight months of 2010 was 93.8 million shares valued at GH¢60.6 million. This compares with 55.4 million shares valued at GH¢49.6 million traded during the same period in 2009. Market capitalization was similarly up by 17% to GH¢18,655.7 million.
At the end of August 2010, the main gauge of stock market performance, the All-share index, posted a return of 22.4%, up from the return of 14.6% in the preceding month and a loss of 43.4% in August 2009.
The performance was underpinned by stocks in the banking and finance sector, agric, food and beverage and energy sectors. The outlook for the rest of the year remains positive and hinges strongly on the continued improvement in the macro fundamentals.
On the other hand, the major global market ended August down after the earnings-fuelled gains of July, as investors confronted a parade of frustratingly weak economic data. Indeed, disappointing news on housing, employment, and manufacturing provided persistent reminders of the challenges facing the recovery and their potential implications for corporate profitability.
Consequently, all major equity market indices declined in August, led by the Russell 2000® Index of small cap stocks which recorded negative 7.4% and a year- to- date of negative 4.4% and the NASDAQ Composite Index recording a negative return of 6.1% and a negative year-to-date of 6.2%. Large caps did not fare much better than their smaller competitors last month, nor did their “mid cap” comparators. The growth style of investing performed better than value, and emerging markets fared slightly better than the equity markets in developed nations.
Performance of the Ghana Stock Exchange (GSE) rebounded in August with renewed investor interest bolstered by continued deepening of macroeconomic stability and further declines in interest rates. This occurred after the GSE ended June and July 2010 down with profit taking activities and selling pressures as well as concerns over earnings performance of some of the listed companies,.
Market turnover during the first eight months of 2010 was 93.8 million shares valued at GH¢60.6 million. This compares with 55.4 million shares valued at GH¢49.6 million traded during the same period in 2009. Market capitalization was similarly up by 17% to GH¢18,655.7 million.
At the end of August 2010, the main gauge of stock market performance, the All-share index, posted a return of 22.4%, up from the return of 14.6% in the preceding month and a loss of 43.4% in August 2009.
The performance was underpinned by stocks in the banking and finance sector, agric, food and beverage and energy sectors. The outlook for the rest of the year remains positive and hinges strongly on the continued improvement in the macro fundamentals.
On the other hand, the major global market ended August down after the earnings-fuelled gains of July, as investors confronted a parade of frustratingly weak economic data. Indeed, disappointing news on housing, employment, and manufacturing provided persistent reminders of the challenges facing the recovery and their potential implications for corporate profitability.
Consequently, all major equity market indices declined in August, led by the Russell 2000® Index of small cap stocks which recorded negative 7.4% and a year- to- date of negative 4.4% and the NASDAQ Composite Index recording a negative return of 6.1% and a negative year-to-date of 6.2%. Large caps did not fare much better than their smaller competitors last month, nor did their “mid cap” comparators. The growth style of investing performed better than value, and emerging markets fared slightly better than the equity markets in developed nations.
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