The Ghana Stock Exchange (GSE) has released its latest equities market report for the month of October 2021, indicating an impressive performance of the securities traded in the market, though foreign companies outperform local companies.
The stock market received GHC25,936,626 volume of equities traded by foreign companies compared to the GHC14,633,194 volume of equities traded by local companies for the month of October ending.
Meanwhile, the local companies have seen a tremendous appreciation in the volume of equities traded compared to the previous year. Local companies in October 2020 showed a volume of equities traded of GHC4,994,536 compared to GHC14,633,194 in October 2021.
The market capitalization for all listed securities ended the month with GHC64, 270.46 million, compared with GHC53,115.38 million, recorded in October 2021. Also, the Ghana Stock Exchange composite index appreciated in volume from GHC 1,837.27 to GHC 2,864.31.
The equity market recorded its second highest annual volume traded in its 30-year history, with higher liquidity during the first quarter of 2021. A record of 695,396,188 shares valued at GHS575,269,873.22 were traded.
The Ghana Stock Exchange has set up three markets, namely the main market, Ghana Alternative Market (GAX) for SMEs and the Ghana Fixed Income Market (GFIM), through which companies have raised over GHC18 billion in long-term capital.
In the equity markets, GHS5.5 billion worth of shares have traded and the average annual return to investors in the last 30 years is 25%.
The GSE has also developed a 3-year strategic plan to transform from a frontier market to an emerging market; a demutualized entity operating at optimal capacity with an innovative and competitive orientation; and to become the preferred platform for financing and investment for both public and private sectors.
The Ghana Stock Exchange was adjudged the best performing exchange in Africa until recently flipped by its peers on the Lusaka Stock Exchange in the second half of 2021 in terms of the dollar rate.
Source: Abdul-Razak Mohammed (Real Estate Times Africa)