GSE Composite Index sees improved performance

THE Bank of Ghana’s Monetary Policy Report for January 2024 has revealed sterling performance of the Ghana Stock Exchange Composite Index.

The index increased to 3,130.23 points in December 2023 from 2,443.91 points recorded in the corresponding period of 2022.

This translated into a year-on-year gain of 28.1 percent in December 2023, compared to a loss of 12.4 percent in December 2022.

According to the report, the improved performance of reflects a shift in the demand for equities during the review year, following the Domestic Debt Exchange Programme -induced adverse shocks to bond prices.

Investor appetite for stocks was also reinforced by the relative stability in the exchange rate in 2023.

The main sectors that contributed to the gain recorded by the GSE-CI were food and beverages, manufacturing, distribution, and agriculture.

The GSE-Financial Stocks Index closed at 1901.57 points, reflecting a loss of 7.4 percent compared to a loss of 4.6 percent over the same comparative period.

The loss was mainly on the back of increased perception of risk in the financial sector, induced by the impact of the DDEP on banks’ balance sheets.

 The financial index recorded significant losses in the first half of 2023 but recovered partially in the second half of the year on the back improved profitability of financial institutions.

Total market capitalisation of the GSE at the end of December 2023 was GH¢73.89 billion, representing 14.6 percent annual growth, compared with 0.02 percent growth in December 2022.

 The increase in market capitalisation was mainly driven by appreciation in share prices in the food and beverages, manufacturing, distribution, mining, IT, and the agriculture sectors.