Databank Report and photo show COVID-19 has crushed Ghana’s feeble stock market
Business & Economy section is brought to you by Jiji.gh — #1 Ghanaian online marketplace
Visit website

Databank Report and photo show COVID-19 has crushed Ghana’s feeble stock market

- A report from Databank shows that Ghana's stock market is currently facing challenges due to the coronavirus

- The market has reported its lowest turnover yet with a contribution of 14.8% as compared to 56.5% recorded in January and 28.6%s in February in 2020

- The downturn is also expected to be worsened by the upcoming presidential and parliamentary elections

Our Manifesto: This is what YEN.com.gh believes in

A Databank research has proven that Ghana’s stock market has experienced a downturn since the outbreak of the coronavirus.

Information available shows that a substantial portion of the market has been wiped out since Ghana recorded its first case in March 2020.

The Databank report, which analyzed the economy for 2020’s first quarter, revealed that the market had its lowest turnover with a contribution of 14.8% as compared to 56.5% recorded in January and 28.6% in February in 2020.

Databank report and photo show COVID-19 has crushed Ghana’s feeble stock market

Source: thebftonline.com
Source: UGC

READ ALSO: Bank of Ghana reveals Ghanaians have more faith in the economy

Per a report by thebtfonline.com, the price-to-earnings (P/E) ratio, which determines the market value for stocks on the trading platform, remains grossly undervalued at 5.58x on a trailing 12-months basis, which is significantly lower than the historical average P/E of 11x.

This implies that the average investor is now willing to pay only 5 times the price of a stock for a company’s earnings, compared to a previous 11 times.

The report goes on to say that the Ghana Stock Exchange Composite Index is expected to close this year with a loss of 12% or even lower as the pandemic is envisaged to dominate market sentiments until there is clear visibility on how it will be contained and the extent on its direct economic impact is determined.

The 2020 presidential and parliamentary elections are also expected to further dampen investor confidence as they come with perceived financial risks.

Meanwhile, a January 2020 report by the Bank of Ghana shows that Ghana is currently experiencing an economic slowdown.

The Composite Index of Economic Activity (CIEA) showed that there has been a slower pace of economic activity in recent times.

YEN.com.gh understands that the index grew by 2.4% in January 2020, compared to 6.4% a year ago.

READ ALSO: Banks recorded 38% profit in first 2 months of 2020 - Banking Sector Report

Enjoyed reading our story? Download YEN's news app on Google Playstore now and stay up-to-date with major Ghana news!

Low-cost ventilators produced in Ghana by Prof. Fred McBagonluri | #Yencomgh

Subscribe to watch new videos

Do you have a hot story or scandal you would like us to publish on YEN.com.gh? Please contact us on Facebook or Instagram now!

Source: Yen

Online view pixel