THE financial position of the Ghana Stock Exchange (GSE) improved in 2021 over that of 2020, management of the Exchange has stated.
The Exchange generated GH¢52,363,887 in revenue in 2021, with an operating profit after tax of GH¢31,129,963 for that year compared to the GH¢39,271,633 revenue generated and an operating profit after tax of GH¢23,460,442 in 2020.
Management of the Exchange at its 32nd Annual General Meeting (AGM) attributed the improvement in performance largely to the bond market which recorded revenue of GH¢46.75 million compared to the GH¢32.52 million in 2020.
Revenue from the equities market dropped by 11.76% with recorded revenue of GH¢5.48 million compared to GH¢6.21 million in 2020. The GSE’s accumulated fund stood at GH¢107,627,252 as of December 2021.
Speaking at the AGM, Chairperson of the GSE Council, Mrs. Abena Osei-Poku said the year 2021 showed signs of recovery following the easing of restrictions on the economy with the slowdown of the COVID-19 pandemic.
Despite the slow recovery of the economy, the equities market GSE Composite Index, which measures the performance of the entire market, recovered from the negative trends in 2020 to end the year strongly with a positive 43.66% compared to the negative 13.98% recorded at the end of 2020.Market Capitalisation for all listed securities at the end of 2021 was GHS64.50 billion, which represents an 18.63% increase compared to GHS54.37 billion in 2020.
“This performance earned the GSE the tag of being the second-best performing market in Africa,’’ Mrs Osei-Poku said.
She urged the Exchange to pursue the implementation of some landmark partnerships struck with other Exchanges of international repute.
Managing Director of the GSE, Mr Ekow Afedzie said: “the Exchange recorded a remarkable performance amid the challenges occasioned by the post-COVID-19 pandemic effects which slowed down economic activities in the economy.”
The bond market had its best performing year since its inception, recording a total volume trade of 208.81 billion, which is a 92.62% increase from the 108.41 billion traded in 2020.
He added that the Exchange was very much committed to playing its critical role in the economy by creating the platform for the mobilisation of long-term capital and investments.
“The GSE will continue to implement its three-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.
We will become the preferred platform for financing and investment for both public and private sectors. All of these are aimed at creating a vibrant Exchange to support its mission of providing an efficient securities market in support of national economic development,” Mr Afedzie submitted.