Investors in 22 of the 38 stocks listed on the Ghana Stock Exchange (GSE) experienced no capital gain or loss in the first quarter of the year, as only 16 stocks saw price movement during the period, an analysis by the B&FT has shown – with some of the dormant stocks extending their barren run back several quarters.

This development, analysts say, reflects the current lopsided nature of the market – coupled with the weak appeal of some stocks and investor apathy over concerns about the broader economy.

The flat stocks – comprising all the six stocks listed on the Ghana Alternative Market (GAX) – cut across banking, mining, manufacturing and insurance.

They include AngloGold Ashanti Depository (AADS), Agriculture Development Bank (ADB), AngloGold Ashanti Limited (AGA), Aluworks (ALW), Asante Gold Corp (ASG), Clydestone (CLYD), Camelot (CMLT), Cocoa Processing Company (CPC) and Dannex Ayrton Starwin (DASPHARMA).

The others are Digicut (DIGICUT), Ecobank Transnational (ETI), Hords (HORDS), Intravenous Infusion (IIL), Mega African Capital (MAC), Meridian Marshall Holdings (MMH) and Produce Buying Company (PBC).

The rest are Pesewa One Plc (POP), Republic Bank (RBGH), Samba Foods (SAMBA), StanChart Preferential Shares (SCBPREF), SIC Insurance (SIC) and Tullow Oil (TLW).

Commenting on the observation, a Senior Research Analyst at Tesah Capital, Joshua Adagbe, said while price movements have historically been limited on the market, the current macroeconomic situation has worsened it as many investors are being extremely cautious.

“Many investors are adopting a wait-and-see approach because they are very uncertain about the timelines for a return to normalcy in the wider economy,” he said, adding that he expects the flat readings to remain in the near-term.

Winners and Losers

At the extreme end of the market were gainers, which have been responsible for the turnaround of GSE’s Composite Index (GSE-CI) from a 12.39 percent loss at the end of 2022 to a 12.33 percent gain at end of the first quarter this year.

The rally was propelled largely by Benso Oil (BOPP), which saw its share price appreciate from GH¢7.65 at the turn of the year to GH¢10.16 at the close of Q1. It has recorded further gain, ending the final trading day of the second week in April at GH¢12.83.

Similarly, the market leader in volume and value terms – MTN – started the year at GH¢0.88, rallied to a high of just shy of its all-time high with GH¢1.30 on March 23, but declined to GH¢1.25 at end of Q1 and has fallen further to GH¢1.20 in the middle of April.

Other gainers include Total Energies, from GH¢4 to GH¢6.39 during the quarter under consideration, as well as the Trust Bank Gambia – GH¢0.8 to GH¢0.82.

In the laggards’ corner were Access Bank, GH¢4.01 to GH¢4; CAL Bank, GH¢0.65 to GH¢5; Ecobank Ghana, GH¢6.64 to GH¢5.4, Enterprise Group, GH¢3.2 to GH¢3; as well as FanMilk, which fell from GH¢3 to GH¢1.29 on March 31, and in the middle of April has dipped further to GH¢1.06.

Others include GCB, from GH¢3.94 to GH¢3.15; Guinness, from GH¢2.05 to GH¢1.5; New Gold ETF (GLD) which started the year at GH¢224 and reached a high of GH¢250 on January 13, but declined to GH¢229 at the end of March and GH¢219.27 in the middle of April.

There is also Goil, GH¢1.72 to GH¢1.64 in Q1; StanChart, GH¢20.16 to GH¢17.10; Société Générale, GH¢1 to GH¢0.62; and Unilever, GH¢5.89 to GH¢4.

Silver-lining

In spite of this, Mr. Adagbe insists that the market is still going through a developmental phase, and sustained sensitisation efforts by stakeholders – particularly the GSE – will lead to an increase in listings, investor participation and liquidity on the market.

“For what it’s worth, the market is in some regards quite young, but has also made giant strides in other areas. Efforts with investor engagements through the Facts Behind the Figures arrangement and investment in technology will all prove useful soon,” he said.

Over the past year, the GSE has ramped up efforts aimed at attracting listings. On the SME-focused GAX, it has relaxed some of its listing requirements and partnered with key stakeholders such as the Association of Ghana Industries (AGI), Development Bank Ghana (DBG) and Standford Seed Transformation Network Ghana to provide a plethora of support mechanisms.

The Managing Director of GSE, Abena Amoah, at one such event in November 2022 disclosed that some 140 of such SMEs – through Standford’s network – have been actively engaged. She is optimistic that at least 10 of them will list on the Accra bourse in the medium-term.

Already, ten state-owned enterprises (SOEs) are being readied for listing on the GSE. This is expected to improve the transparency and profitability of these institutions, as well as liquidity on the local stock market.