The Ghana Stock Exchange (GSE) posted a solid financial performance in 2020 despite the devastating effects of COVID-19 which disrupted economies around the world.
Speaking at the 31st annual general meeting of the GSE, Anselm Ray Sowah, chairman of the GSE Council, said: “The year 2020 was unusual by all standards as the coronavirus pandemic (COVID-19) ravaged the world and posed some of the biggest organizational challenges in history.”
During the period, the GSE Composite Index closed the year at 1,941.59 points, which represented a decline of 13.98%, slightly higher than the -12.25% recorded at the end of 2019.
Record-setting year
The market capitalization for all listed securities ended the year with GHC54.37 billion compared with GHC56.79 billion recorded in 2019 representing a dip of 4.25%.
However, the GSE had a record-setting year across its markets despite the challenging times.
The equities market recorded its second-highest annual volume traded in its 30-year history, with higher liquidity during the last quarter.
A record 695,396,188 shares valued at GHC575,269,873.22 were traded.
The year 2020 marked 30 years of operations of the Ghana Stock Exchange, which commenced trading on 12 November 1990.
The 31st annual general meeting highlighted some of the successes and challenges of GSE during its 30 years of existence.
From a modest beginning, the GSE has set up three markets namely the Main Market, Ghana Alternative Market (GAX) for SMEs and Ghana Fixed Income Market (GFIM) through which companies have raised over GHC18 billion in long-term capital.
Strategic plan
On the equities markets, GHC5.5 billion worth of shares have been traded and the average annual return to investors in the past 30 years is 25%.
The GSE was adjudged the best-performing exchange in Africa in 2008 and 2018 by Africa Investor (Ai) and continues to shine on the continent.
In his remarks, Ekow Afedzie, the managing director of the GSE, said, “The Exchange performed beyond expectation amid challenges occasioned by the COVID-19 pandemic which slowed down economic activities globally, collapsed businesses and brought the lives of people to a standstill.
“Nonetheless, the Ghana Fixed Income Market (GIFM) smashed the 100 billion ceiling for trade volumes and the Equity Market closing the year on a high note despite the difficult conditions.”
The Exchange has developed a three-year strategic plan to transform from a frontier market to an emerging market; demutualized entity operating at optimal capacity with an innovative and competitive orientation; and become the preferred platform for financing and investment for both public and private sectors.
All these are aimed at creating a vibrant Exchange to support its mission of providing an efficient securities market in support of national economic development.
