Abena Amoah, the Managing Director of the Ghana Stock Exchange, has disclosed that the Exchange plans to double its equity market to about GH¢130 billion from its current GH¢65 billion position.
According to the Managing Director of the Ghana Stock Exchange, the equities market plays a vital role to the economy and therefore, requires efforts towards making the Ghanaian market more competitive to attract investors in the capital market.
Addressing participants at a sensitisation workshop for phase two of the West African Capital Market Integration, the GSE MD joined calls for the integration of the capital markets in the African sub-region.
“The Ghana Stock market is one of the significant markets in Africa. Our equity market has a capitalization of about GH¢65 billion and we are looking to double that. We moved from the 40 listed companies that we had to about 100 and by joining other markets in Africa, we can leverage by learning from each other.”Abena Amoah
Abena Amoah further urged stakeholders in the financial sector to team up efforts and collaboration from other African market towards boosting the continent’s equity markets.
Market capitalization is one measurement of a company’s size. It’s the total value of a company’s outstanding shares of stock, which include publicly traded shares plus restricted shares held by company officers and insiders.
The establishment of GSE in November 1990, 32 years ago, marked the beginning of the Development of Ghana’s Capital Market and the Financial Market
Over the years, the Ghana Stock Exchange has provided a market for raising long-term capital. Companies have raised over GH¢5,407m for expansion, to improve technology, meet capital requirements of regulators, etc. It Created three (3) markets namely – Main Market, Ghana Alternative Market (GAX) both for equities and the Ghana Fixed Income Market (GFIM) which has provided liquidity for both government and corporate bonds.
Market Capitalization improved from GH¢3.05 million in 1990 to GH¢ 70.8 billion as at 20th July 2023.
Historically the GSE has continually turned out appreciable return on investment for investors.
Government to enlist TDC, Ghana Reinsurance Company on Stock Exchange
Meanwhile, to enhance competitiveness of the market, Minister for Public Enterprises, Joseph Cudjoe, is seeking cabinet approval for the enlistment of two further companies on the GSE, namely Tema Development Company (TDC) and Ghana Reinsurance Company (GhanaRe).
Mr. Joseph Cudjoe, while announcing the liquidation of some 17 defunct state enterprises, hinted that his Ministry is pushing to get enterprises that are deemed profitable on the stock exchange.
The sector Minister disclosed that proposals are before cabinet for the two companies, TDC and Ghana Reinsurance to be listed.
“I have proposed some companies; at the moment two of them in cabinet, who have met the listing requirement. One in the real estate sector to help raise capital to deliver more housing and the other in the insurance industry to raise additional capital. It can be TDC and for the insurance sector, Ghana Re proposed.
“There are a lot of considerations that go into that decision at the cabinet level. Government hasn’t taken that decision but personally, I am praying for it to happen.”Mr. Joseph Cudjoe
However, Financial Advisory Partner with Deloitte Africa, Yaw Appiah-Lartey has advised the government to tread with caution with any move in listing State-Owned Enterprises on the Stock Market.
Appiah-Lartey warned that the stock market has not had a good performance in the past two years, hence a need to assess the market and list stocks investors would be readily interested in purchasing.