PERFORMANCEOFSUB-SAHARAN

The study examined stock market liquidity and performance of Sub-Saharan African Capital Markets for the period 1988 to 2020. The specific objectives of the study were to examine the level of market liquidity in the sub-Saharan Africa capital market using turnover ratio, value traded, volume of trade; and the impact of these variables on the overall market performance. The sample of countries for the SSA countries include Nigeria, Côte d'Ivoire, Guinea, Ghana Kenya and South Africa. Given that the focus is on liquidity of the markets, a dynamic structure was formulated for the analysis using the Pooled Mean Group (PMG) estimation for the panel data used for the study. Liquidity was measured both in terms of the market and the economy, while the volume of trade in the markets was also considered in the overall market performance analysis. The performance of the market as well as the basis for market depth was considered in terms of the capitalization of the stock markets. The results from the analysis of data revealed that there is significant level of market liquidity in the Sub-Saharan Capital Markets generated from market turnover, but this liquidity is low for the markets; value traded also generated significant levels of liquidity in the Sub-Saharan Capital Markets, yet it was also found to be low; the level of market liquidity generated by volume of trade in the Sub-Saharan capital markets is significant but low; and market liquidity has significant positive impact on stock market performance in the Sub-Saharan capital markets. The study recommends among others that, there is the need for African stock markets to improve on the level of liquidity. This is because, the study has shown that liquidity generates both long run and short run positive outcomes for overall market performance in these economies. The liquidity can be further enhanced by promoting activities that enhance market participation as well as ease of trading and other forms of transfers. In this case more automated stock market activities can facilitate liquidity.