GSE-CI, GSE-FSI record 22.5% and 18.8% gains YoY
The Ghana Stock Exchange Composite Index (GSE-CI) according to the Bank of Ghana increased to 2696.45 points in February 2022 from 2200.92 points recorded in the corresponding period of 2021.
This translates into a year-on-year gain of 22.5 percent in February 2022 compared to a loss of 0.5 percent in February 2021.
The GSE-Financial Stocks Index (GSE-FSI) closed at 2118.96 points, representing a gain of 18.86 percent compared to a loss of 4.7 percent, over the same comparative period in 2021.
The sectors that contributed to the year-on-year growth were the Finance, Food & Brewery, Agriculture, Distribution, and Information Technology.
On year-on-year basis, the stock market’s improved performance was on the back of rebound in investor confidence, underpinned by policy support, as well as the relaxation of pandemic-related restrictions, particularly, in 2021.
The year-to-date performance, however, showed a loss in the index of about 3.33 percent.
The year-to-date loss is attributed to the re-imposition of capital gains tax on securities listed on the GSE, inducing some investors to switch to Government securities.
Other factors include selling pressures, poor performance of some companies, relatively higher yields on fixed income securities, uncertainty induced by inflation and exchange rate pressures, as well as portfolio reversals.
Read: CDD-Ghana to track usage of mineral revenue with mining district scorecard project
Total market capitalisation of the GSE at the end of February 2022 was GH¢62.88 billion representing a growth of 15.7 percent (GH¢5.73 billion), compared with a growth of 1.1 percent in February 2021.
The year-on-year improvement in market capitalization was largely on account of capital gains.
Total market capitalization, however, declined by 2.5 percent, on year-to-date basis, driven by declines in share prices.
The Ghana Stock Exchange Composite Index (GSE-CI) continued to show improved performance, on yearon-year basis, on the back of rebound in investor confidence, underpinned by policy support, as well as the relaxation of pandemic-related restrictions, particularly in 2021.
However, on year-to-date basis, the GSE-CI recorded a loss on account of the re-imposition of capital gains tax on securities listed on the GSE, inducing some investors to switch to Government securities.
Other factors include selling pressures, poor performance of some companies, relatively higher yields on fixed income securities, inflation, and exchange rate pressures, as well as portfolio reversals.
