Ghana Stock Exchange records GH¢31.13m profit — Highest in 31-year history

BY: Emmanuel Bruce

THE Ghana Stock Exchange (GSE) has recorded its highest profit in its 31-year history of operation having recorded a significant profit growth from GH¢23.46 million in 2020 to GH¢31.13 million in 2021.

This was after the exchange’s total revenue shot up from GH¢39.27 million in 2020 to GH¢52.36 million.

The improvement in performance was mainly attributed to bond market activities, which recorded a total revenue of GH¢46.75 million, compared to GH¢32.52 million in 2020.

Revenue from the equities market, however, dipped by 11.76 per cent from GH¢6.21 million in 2020 to GH¢5.48 million.

At the 31st annual general meeting of GSE, the Managing Director, Ekow Afedzie, said GSE’s Accumulated Fund also stood at GH¢107.62 million as of December 2021.

Equities market

Mr Afedzie said market capitalisation increased from GH¢54.4 billion in 2020 to GH¢64.5 billion, representing an increase of 18.63 per cent.

He said the GSE Composite Index (CI) which measures the performance of the entire market also recovered from the negative trends to close 2021 with a positive change of 43.66 per cent, compared to a decline of 13.98 per cent in 2020.

The GSE Financial Stock Index also appreciated by 20.7 per cent compared to a decline of 11.73 per cent in 2020.

Mr Afedzie said that impressive performance ended the negative returns since 2018, which could be attributed to the positive investor confidence, fuelled by strong earnings reported by listed companies and relatively low share prices.

He said 2021 was an active year for the local bourse although the total volume traded dropped by 30 per cent from 695.4 million in 2020 to 486.59 million.

“The value traded on the other hand also dropped by 7.3 per cent, closing the year at GH¢533.27 million, compared to the GH¢575.27 million traded in 2020,” he stated.

With regard to listings, he said there was no new listing on the market in 2021.

Ghana Fixed Income Market

Mr Afedzie said the Ghana Fixed Income Market (GFIM) closed the year 2021 with an all-time high trade volume of GH¢208.81 billion compared to GH¢108.41 billion traded in 2020.

He said volume traded for corporate bonds at the close of 2021 was also GH¢22.94 billion, compared to GH¢10.83 billion in 2020.

Volume traded for government bonds at the close of 2021 was also GH¢185.87 billion, up from the GH¢120.69 billion in 2020.

Strategic plan

The Chairperson of the GSE’s Council, Abena Osei-Poku, for her part, said the GSE’s three-year strategic plan was being implemented and making steady progress.

She said the key expected outcomes of the strategy were to make the GSE the preferred platform in the provision of financing and investment for both public and private sectors; to become a demutualised entity operating at optimal capacity with an innovative and competitive orientation; and to transform from a frontier market status into an emerging market.

On the demutualisation process, she said the GSE was progressing steadily and stakeholder discussions have been held with Licensed Dealing Members, associate members, GFIM members and the Securities and Exchange Commission.

She said others such as the Bank of Ghana and the Ministry of Finance would also be consulted in due course.

“An Emergency General Meeting will be organised as soon as the various documents are finalised for member’s approval to commence implementation,” she stated.