Stock market analysts are confident that the positive performance of the Ghana Stock Exchange will continue till the end of 2017.
After recording negative growth for about two consecutive years, the market is said to be recording a positive turn at least as at the middle part of the year.
The Managing Director of the Ghana Stock Exchange, Mr. Kofi Yamoah has attributed the positive turn to the strides being made by the banks.
Banking stocks' performance
Data available to Citi Business News on the performances of the listed companies also indicate that as at Friday, 9th June, 2017, seven banking stocks gained some pesewas on their share prices; the prices of two banking stocks dropped with one recording no price change.
UT Bank recorded a 100 percent increase in its share price.
The banking stock's price went up from 3 to 6 pesewas between 31st December, 2016 and Friday, the 9th of June.
The prices of GCB Bank went up by 46.07%, Stanchart (32.35%), Societe General (22.58%), Ecobank Ghana (11.41%), Ecobank Transnational Incorporated (10%) as well as CAL Bank (6.67%) between December 2016 and Friday, the 9th of June.
Analysts explain that the improved performances of the banks have largely been driven by the impressive financial performances for the year under review.
An Associate, Equity Trading at UMB Stockbrokers, Kofi Busia Kyei tells Citi Business News UT Bank's high performance could be described as speculative as investors are yet to make decisions based on the company's financial statements.
"UT Bank made a hundred percent from last year to date and this performance is purely speculative because investors haven't seen any financial figures and they are highly hopeful of some positive news on the yet to be released financials. Ecobank on the other had their performance for first quarter has been bullish operating income has been up with profit after tax also went up by 17.85%," he stated.
He added, "GCB also has been doing quite well because their NPL actually went down by 14% while shareholder equity also went up by 21.79%. Generally the banks' performances have been based on the financial improvement."
While ADB did not record any price change within the period, the prices of HFC Bank and Access Bank went down by 33 and 7 percent respectively.
Other stocks' performance
Other listed companies that recorded some gains on their prices were; Ghana Oil, Benso Oil Palm, Total Petroleum, Fan Milk, Unilever Ghana and Aluworks.
Meanwhile, stocks that recorded drop in prices included; Starwin Products, Produce Buying Company, Tullow Oil, Ayrton drugs, PZ Cussons and Guinness Ghana.
Positive trends to continue?
Kofi Busia Kyei also predicts that the positive performance is expected to continue into the end of year and well into the first quarter of next year.
"The medium to long term management strategy offered by government is one major factor, TBill rates are currently at 11.91% which is not good enough. So generally, when TBill rates are going down, we expect it to reflect on the stock market, and most of the stocks too getting to the end of the year 2016 were trading below their faire trading prices."
"Generally, with improved economic conditions, they are expected to bounce back and it's expected to continue going into the end of the year."