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Union Capital Investment Bank · Accra
Equities Research

GSE Equities: Selectivity Over Beta in the Second Half

By Adjoa Owusu-Takyi · Union Capital Research
In short

After a broad recovery, we think GSE returns through the second half of 2026 will be driven by company fundamentals — earnings quality and dividend cover — rather than index-level momentum.

The GSE Composite Index has retraced much of its earlier weakness, but a closer look shows the move has been narrow. A handful of large-cap financials and telecoms have done the heavy lifting while the broader market has lagged.

Why selectivity matters now

When an index rallies on a few names, buying the index buys the crowding. We prefer to underwrite individual businesses — looking at earnings quality, dividend cover and balance-sheet resilience — rather than chase the tape.

Where we look

Companies with pricing power and hard-currency revenue lines screen best against a still-volatile cedi. We remain cautious on highly leveraged names exposed to short-term funding costs.

Apply this to your portfolio

Speak to a Union Capital advisor about what it means for you.