GSE’s 30.75% composite index makes it the third-best-performing stock exchange in Africa

The Ghana Stock Exchange (GSE) with a composite index of 30.75% year-to-date returns on equities, has emerged as the third-best-performing stock exchange in Africa.

The recorded 30.75% year-to-date return is a significant improvement from the -12.38% year-to-date return recorded at end-2022 by the local bourse.

The bourse’s Financial Stock Index (FSI) however, has a negative year-to-date return of 0.51%.

The first and second-best-performing stock exchanges are the Botswana and BRVM stock exchanges.

Speaking at the Ghana Stock Exchange’s (GSE) annual ‘Ring the Bell’ programme to mark the local bourse’s 33rd Anniversary Celebration themed, “Resilience and Adaptability: Thriving in Challenging Times”, on Tuesday, November 14, 2023, Managing Director of the GSE, Abena Amoah, stated that the GSE was formed 33 years ago, with a vision to accelerate national economic development by facilitating access to long-term capital and investment.

She noted that the GSE in its 33-year existence, has chalked some successes which include the establishment of 3 markets (the Main Market, GAX and GFIM) with 45 Issuers and 240 listed securities valued at GHS 356 billion.

According to the MD, listed companies have raised over GHS 26 billion in long-term capital across the three markets with GHS 6 billion in equity and GHS 20 billion in debt

Adding that, over GHS 750 billion worth of securities have been traded across the three markets, with the fixed-income market dominating in terms of the trades made.

“Our trading and settlement processes are fully automated, and improvements in our technology solutions have twice won us the Most Innovative African Exchange Award by ai Investor. From 3 brokerage firms at founding, today we have licensed 52 companies to trade across our markets,” she stated.

Speaking further, Ms Amoah noted that Ghana’s current macroeconomic challenges, the DDEP, and global developments have impacted issuers, intermediaries, and investors alike with volumes and values traded significantly lower in 2023 compared to 2022.

According to her, approximately GHS 69 billion securities in value have been traded so far this year as against the GHS 196 billion traded within the same period in 2022 on the GFIM and GHS 424 million as against GHS 1.3 billion on the equities market.

In an optimistic outlook for the GSE, Ms Amoah noted that the GSE in the years ahead will unveil an array of products and initiatives including the Commercial Paper Market; Over the Counter Market; Securities Lending and Borrowing; Asset-backed Securities (ETFs); Margin Trading; Market Making; and Underwriting and Issuing House Rules.

These, she noted, are poised to diversify investment avenues, embolden investors, and invigorate the market’s vibrancy.

Source:norvanreports