|
[2008-08-15] GSE Capitalization Reaches $18bn
SIGINIFICANT OFFSHORE investments from foreigners is reshaping the profile of the Ghana Stock Exchange (GSE), making the Accra Bourse an increasingly bullish investment hub in the West Africa sub-region.
In the last seven months, the GSE all-share index, which measures the value of quoted equities, has grown by over 56 percent.
As at last Monday, market capitalization of the 35 listed equities stood at GH˘17,773.48 million (about $18 billion), indicating an increase of $5.1 billion over the figures in January.
The banking and beverage sector stocks continue to outperform other equities such as trading and paper converters.
Ecobank Ghana Limited, Fan Milk Limited and Standard Chartered Bank, the three hottest stocks, continue to attract more individual and institutional investors, especially from Nigeria.
Most of the Nigerian investors, according to a source at the exchange, are non-resident investors who monitor trends in the market from Nigeria, mostly Lagos, Abuja and Port Harcourt.
Equities also attracted to these individual Nigerian investors are Unilever Ghana Limited, AngloGold Ashanti Limited and HFC Bank.
Standard Chartered Bank holds the all-year high record as the costliest stock, trading at GH˘37.06 ($38.9), followed by AngloGold and Total, at GH˘30 ($31.5) and GH˘6.20 respectively.
While Ecobank Ghana Limited plans a rights issue in October, its parent body, Ecobank Transnational Incorporated (ETI) will be going to the market to shore up capital in two weeks’ time.
The two stocks have been tipped to be oversubscribed by market watchers who are also anticipating huge purchases by individual Nigerian buyers.
The GSE is also preparing to launch its automation programme, where trading will be done electronically in September, as part of measures to conform to modern practices across the world.
Already, the trading floor of the market is wearing a new look with state-of-the-art computers taking the place of the trading tables and chalkboards. Observers say the development is a reflection of the growing status of the market.
The Ghana Stock Exchange was established in July 1989 as a private company limited by guarantee under Ghana Companies Code of 1963.
It was given recognition as an authorised stock exchange under the Stock Exchange Act of 1971 (Act 384) in October 1990 and was officially launched in January 1991.
Source: Daily Guide
|
