Ghana Stock Exchange Posts Highest Profits Since Inception

Despite the devastating effects of the COVID-19 pandemic in 2020, the Ghana Stock Exchange (GSE) posted its highest gain since its inception.

The exchange made a profit of GH23.46 million in 2020, compared to GH8.43 million in 2019.

GSE Board Chairman Mr Anselm Ray Sowah said at the 31st Annual General Meeting that this year was unusual in every way as the coronavirus (COVID-19) ravaged the world and some of the biggest organizational challenges in the world. history formed.

He said the GSE Composite Index closed the year at 1,941.59 points, down 13.98 percent, slightly more than the -12.25 percent recorded at the end of 2019.

He said the market cap for all listed securities ended the year at GH54.37 billion compared to GH56.79 billion in 2019, representing a 4.25 percent decline.

However, despite the challenging times, the Exchange had a record year in all markets.

The stock market recorded the second highest annual volume traded in its 30-year history, with higher liquidity during the last quarter. A record 695,396,188 shares worth GH575,269,873.22 were traded, he said.

30 years in business

The year 2020 marked 30 years of operations of the Ghana Stock Exchange, which started trading on November 12, 1990.

The AGM highlighted some of GSE’s successes and challenges over its 30-year history.

From humble beginnings, the GSE has established three markets, namely its main market, the Ghana Alternative Market (GAX) for SMEs and the Ghana Fixed Income Market (GFIM) through which companies have raised more than GH18 billion in long-term capital.

Equity markets have traded GH5.5 billion worth of shares and the average annual return for investors over the past 30 years has been 25 percent.

The GSE was named the best performing exchange in Africa by Africa Investor (Ai) in 2008 and 2018 respectively and continues to shine on the continent.

Performing above expectations

In his comments, the GSE’s managing director, Mr Ekow Afedzie, said the Exchange performed above expectations amid challenges posed by the COVID-19 pandemic that slowed global economic activity, collapsed businesses and brought people’s lives to a standstill. brought.

Nevertheless, the Ghana Fixed Income Market (GIFM) broke the GH100 billion cap on trading volumes and the stock market ended the year with a high mark despite the difficult conditions, he noted.

He said the Exchange had developed a three-year strategic plan to transform from a frontier market to an emerging market; demutualized entity operating at optimum capacity with an innovative and competitive orientation; and become the preferred platform for financing and investment for both the public and private sectors.

All of these are aimed at creating a vibrant Exchange to support its mission to provide an efficient securities market to support national economic development, he said.