GSE: Total capital loss of GH¢2.42 billion recorded at end of 2020 – BoG

Value of listed companies on GSE declined in 2020, BoG

Investors offload their assets in haste over COVID-19 fears

The Financial Stability Review of the Bank of Ghana has revealed that the value of listed companies on the Ghana Stock Exchange (GSE) recorded a decline in 2020, with a number of 36 equities on its platform compared to 39 in 2019.

The report showed that investors experienced a total capital loss of GH¢2.42 billion at the end of 2020.

The BoG report said the total market capitalization recorded at the end of 2020 was GH¢54.37 billion, as compared to GH¢56.79 billion in 2019.

Also, the decline in market capitalisation, which translates into a loss of 4.4% was mainly attributed to decreases in stock prices on the local bourse.

According to the report, the factors which accounted for the decrease in stock prices, were lower demand and excess supply of equity stocks, as investors were eager to offload their assets for cash in light of uncertainties arising from the COVID-19 pandemic.

“In effect, investors experienced a total capital loss of GH¢2.42 billion at the end of 2020”, the report added.

As of November 12, 2021, the GSE Composite Index which tracks the performance of all companies traded on the Ghana Stock Exchange had returned 53.02% with a Market Capitalization of GH¢65.24 billion.

The Bond market had traded GH¢178.76 billion representing 65.39% more than the full year of GH¢108.41billion traded last year.