On the Ghana Stock Exchange (GSE,) the stock market’s benchmark composite index rose by 13.21 points to close at YTD return of 10.58%.
The rise in the broader market return was largely due to the GHS 0.54 gains recorded on SCB which is one of the large cap equities on the Accra bourse.
Year-on-year comparative analyses of the YTD broader market return shows that the stock market has partially rebounded.
The market returned -1.21% at this time last year 2016. Further gains are expected on the market on the back of more inflows of pension funds into stocks. 2016FY earnings report of listed companies will continue to influence investors’ trade decision on stocks.
GN Analysts expect the investment community especially listed companies to react positively to general tax cuts including the capital gains tax from the budget reading today.
The investment climate of Ghana will be more open to foreign investors’ if capital gains taxes are completely scrapped from the 2017 budget.
Also, the excess tax burden imposed on businesses has crippled productivity and growth within the business environment of Ghana, the stock market will experience further growth in value if businesses are allowed more room to expand and grow.
Trading activity on the bourse ended with 5 gainers [BOPP, EGH, GOIL, SCB and UNIL] and 1 loser [TOTAL] yesterday. UTB topped the trading chart in terms of volume as 250,400 shares worth GHS 10,016.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 10.58% and 14.23% respectively.
Trading activity on the Ghana Alternative Market (GAX,) was hushed as no shares changed hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi Gained marginally to the British pound and Euro but Lost to the Dollar yesterday.
The local currency exchanged at a mid-rate of GHS 4.4970 to the USD, GHS 5.5331 to the GBP and GHS 4.7397 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 6.89%.
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