GSE composite index rebounds with 30.75% gain
After a difficult year which has seen volumes and value of trade on the local bourse dip significantly, there appears to be some good news as the Ghana Stock Exchange’s Composite index has recorded a gain of 30.75 per cent in the first ten months of the year.
This compares to a loss of 12.38 per cent at the end of 2022.
Speaking at the 33rd Anniversary “Ring the Bell’ ceremony of the GSE, Managing Director, Abena Amoah, said the Financial Stock Indices also continues to improve this year after making a loss of 4.61 per cent in 2022.
She said the 30.75 per cent recorded by the Composite Index makes it’s the third best in Africa so far this year.
Ms Amoah said the past 12 to 18 months had tested the market’s our collective resilience like never before due to the macro-economic challenges, the Domestic Debt Exchange Programme, and global developments which have impacted Issuers, Intermediaries and Investors.
She said volumes and values traded were significantly lower in 2023 compared to 2022, noting that 69 billion securities have so far been traded this year, compared to 196 billion same period in 2022 on the Ghana Fixed Income Market; and 424 million, compared to 1.3 billion on the equities market.
“A bright light in our year has therefore been the performance of the GSE Composite and Financial Stock Indices,” she stated.
33 years’ journey
Sharing the 33 years’ journey of the GSE, she said three markets have so far been established, with 45 Issuers and 240 listed securities valued at GH¢356 Billion.
She said companies have raised over GH¢26 billion in long-term capital across the markets: GH¢6 billion in equity and GH¢20 billion in debt.
She noted that over GH¢750 billion worth of securities have traded on the markets, with the fixed income market dominating this liquidity.
“From three brokerage firms at founding, today we have licensed 52 companies to trade across our markets, there are 1.4 million securities accounts in the CSD, with many more Ghanaians investing through collective investment schemes,” she stated.
Speaking on the theme for ceremony which was ‘Resilience and Adaptability: Thriving in Challenging Times”, the Director General of the Securities and Exchange Commission, Rev Daniel Ogbarmey Tetteh, said the capital market reflects the global economy – dynamic, interconnected, and susceptible to both opportunities and adversities.
He said investor resilience was thus crucial for navigating downturns and emerging stronger in challenging times while adaptability was about the capacity to embrace change and to be agile in the face of uncertainty.
he added that resilience was closely linked to the urgent need for financial education and literacy.
“As our financial markets evolve and financial services and products diversify rapidly, it is essential for market participants to possess a deep understanding of key financial concepts to make informed investment decisions and formulate efficient investment strategies.
“The macro-economic challenges have affected purchasing power and how investment performance is evaluated, and Investors and operators alike must now exercise diligence and resilience to build and maintain earning portfolios in this new environment,” he stated.
Strive for greater sophistication
In a speech that was read on his behalf, the Director of Financial Services Division of the Ministry of Finance, Sampson Akligoh, said Ghana's capital markets need to move away from vanilla offerings and strive for greater sophistication.
He said the ability to lend securities, the introduction of short selling, and the development of derivatives would surely open doors to a plethora of new opportunities for market participants and investors alike.
He noted that in today's age, digitalisation and innovation were paramount and essential for survival.
“They are the very tools that can help us adapt to changing circumstances and find new opportunities that will position us at the forefront of progress.
“Let me strongly indicate that, Government remain committed to continuously chart a well thought financial sector reforms needed to develop an ecosystem for a more resilient and competitive economy in the sub-region,” he stated.
He said as the capital market reflects on the past 33 years of GSE, it was necessary to celebrate the achievements and the challenges that have have been overcome.
“The lessons we've learned and the strategies we've discussed today will guide us for brighter days ahead
“I applaud the effort of GSE Council, the management and staff for 33 years and give each other a pat on the back for a good work done. Let this anniversary mark the beginning of a new era of prosperity and resilience in our capital markets,” he added.