Seven out of 11 financial stocks listed on the Ghana Stock Exchange (GSE) have registered negative returns thus losing millions of Ghana cedis in value since the beginning of the year.
Ecobank Transnational Incorporated (ETI), parent bank of Ecobank Ghana was the biggest loser on the Accra Bourse as at Friday April 15, 2016 with a year-to-date of -33.30 percent and a market capitalization of GH¢4.3 billion. GCB Bank followed suit with an annual return of -7.70 percent and a market capitalization of GH¢927.50 million.
The two companies are currently trading at 18 pesewas and GHc3.6 pesewas per share respectively on the GSE.
Ecobank Ghana, CAL, HFC, Stanchart and Trust Bank Gambia all recorded negative returns at the end of trading on Friday April 15, 2016.
Their annual returns stood at -2.30 percent, -3.0 percent, -5.60 percent, -1.20 percent and -5.40 percent respectively.
Due to this, their market capitalizations have gone down.
Enterprise Ghana Limited which over the years has been one of the outstanding stocks on the Ghana Stock Exchange and UT Bank are the only two financial stocks that have registered gains since the year began.
They have recorded 2.10 and 10.0 percent year-to-date gain respectively. Their market capitalization stood at GHc326.51 million and GHc50.19 million respectively while they are trading at about GHc2.45 and 11 pesewas on the GSE.
Analysts attribute UT’s recent positive return to a restructuring programme that the bank is undertaking to clean its books from high impairment and bring it to profitability.
SocieteGenerale and SIC Insurance were the two firms that recorded no change in value at the end of April 15, 2016.
The situation appears to be similar in the consumer sector where Guinness Ghana Breweries Limited and PZ Cussons have all registered losses in value.
The GSE Financial Sector Index as at Friday April 15, 2016 stood at -7.02 percent in cedi term.
The GSE recorded a negative return in both US dollar and the Ghana cedi for investors for the first quarter of this year.
While the Ghana Stock Exchange Composite Index (GSE CI) recorded -4.15 percent return in cedi term for the first three months of 2016, it registered a -5.64 percent return in dollar term despite a relative stability in the local currency.
Beside the Nigerian Stock Exchange which recorded -10.9 percent return for investors in the first quarter, all other stock exchanges in Africa did better than the Accra Bourse.
The market capitalization of the 36 listed firms on the main market stood at GH¢54. 7 billion at the end of March 31, 2016 compared with GH¢57.11 billion at the end of December 31, 2015.
SIC, BOPP and HORDs listed on the SME market were the best performing stocks during the first three months of 2016. They ended the period trading at 18 pesewas, GH¢3.13 and 10 pesewas respectively
The worst performing stocks were Aluworks, Cocoa Processing Company and Starwin Ghana.
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