GSE Records Highest Trading

GSE PixThe Ghana Stock Exchange (GSE)  last year  recorded the highest trading since the inception of the Exchange, Managing Director, Mr Kofi  S. Yamoah has said.

The total  value of shares traded on the Accra bourse last year stood at GHc465.14 million, which is an increase of  355 per cent  over the previous year’s figure of GHc102  million, while  the volume of traded shares  stood at Ghc313 million, an increase of 43 per cent from the previous year’s figure of GHc 218 million.

Addressing the media on the performance of the  stock  market  for 2013 in Accra on Wednesday, Mr Yamoah attributed the feat  to the excellent  results recorded in 2012  by the  companies listed  on the Accra bourse , particularly those in the banking and insurance industries.

”The participation in the market by the Second Tier Private Fund Mangers  beginning from November 2012   also accounted for the improved performance of the GSE,” he said.

He said total market capitalisation stood at GHc61 billion, which  the domestic market contributed about  Ghc11.7 billion

”The composite index, which measures  the performance of all the listed companies on the exchange,   recorded a gain of 79 per cent, while the financial stock index, which also measures the performance of the companies in the financial and insurance sector, recorded a gain of 72 per cent,” Mr Yamoah said.

”This does tell us that the gains made by the composite index was influenced by the domestic market,” he said.

Mr Yamoah said the number of listed  securities on the exchange in 2013  stood at 37 and the number of securities traded were 28.

The Government bonds listed last year was 100 and the total value was GHc11.4 billion.

The Managing Director said most of  the companies listed on the exchange recorded positive gains above the composite  index.

Among the  best performing companies   are PZ Cussons Limited, which recorded the highest gains of 339 per cent followed by the Enterprise Group Limited,  292 per cent, Cal Bank Limited,  155 per cent,   Mechanical Lloyd Company Limited, 153 per cent, Guinness Ghana Breweries Limited, 137  per cent,  and GCB Bank Limited, 131 per cent.

The other  are  Benso Oil Palms Plantation Limited, 129 per cent,  Societe General Ghana Ltd, 121 per cent, HFC Bank Ltd, 113 per cent, Unilever Ghana Ltd, 87 per cent, and  Fan  Milk 86 per cent.

The least performers which recorded negative are Tullow Oil Plc, Trust Bank Limited- The Gambia, African Champions Limited, Starwin Products Ltd and Transactions Solutions Ghana Limited.

Mr Yamoah said the high interest rate,  exchange rate and inflation affected the financial operation of the exchange.

”The high interest and exchange and inflation is not good for business and the market. Efforts  should be made to address these challenges,” he urged.

On the performance of Ghana on the Africa Stock market, Mr Yamoah disclosed that  Ghana was adjudged  the second best performing market in Africa after Malawi by the africainvest.com.

Presenting the outlook for 2014, the Managing Director said the GSE ”expects new listings this year for the main and the Ghana alternative Market (GAX)  for Small and Medium Enterprises and start-ups.”

He said adb, and Vanguard have expressed interest to list on the exchange, while Processed Food and Spices Ltd and Meridian Marshalls had accessed the Listing Support Fund of the GAX.

Contributing to the discussions, the Deputy Managing  Director, Mr Ekow Afedzi  said p reparation towards the integration of the West African Capital Markets was  on course.

”The Managing Directors of the Stock Exchange in West Africa  have passed a resolution to harmonise the market rules,” he said.

He said the focus of the GSE to meet the growing demand of companies to raise additional capital through the stock market to enhance  their businesses. By Kingsley Asare

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