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MTN unit’s rally gives Ghana best-performing stocks in Africa

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Shares of MTN Group’s Ghanaian unit have almost doubled this year, helping the nation’s main stock index become Africa’s best-performing equity benchmark.

Scancom Plc, which accounts for about a quarter of the Ghana Stock Exchange Composite Index, has surged 94%, the most since its 2018 listing and powering a 42% advance in the Accra market’s key gauge. That’s the sixth-best globally among 92 benchmarks tracked by Bloomberg in local currency terms.

And Scancom’s stock may have further to run if the valuation is any guide. Even after this year’s storming gains, the mobile phone company’s shares remain among the cheapest wireless stocks in the region. They trade at 10.16 times earnings, compared with 14 times for MTN Nigeria Communications Plc and 37 times for Vodacom Tanzania.

“MTN’s financials have always pointed to a company operating profitably, although they listed on Ghana’s bourse at a time the entire market was not doing well,” Nana Kofi Agyeman Gyamfi, head of wealth management at Bora Capital Advisors, said by phone. “That initially dragged them down, but as the market improves the good stocks will rise.”

Scancom stock has two buy ratings from analysts tracked by Bloomberg, with no holds or sells, and a potential share-price upside of 27%, according to their targets.


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