Business News of 2014-01-17

Performance of GSE in 2013 excellent

The Ghana Stock Exchange (GSE) recorded an outstanding performance in 2013.

The Managing Director of the GSE, Mr Kofi Yamoah, attributed the good performance to the excellent performance of listed companies for the whole 2012 as well as the first, second and third quarters of 2013.

Mr Yamoah said the second group of Pension Fund Managers (PFM), also known as the Second Tier Private Pension Fund Managers’ participation, also contributed to the performance.

Considering the 91-day treasury rule that was often used, he said 2013 started with an interest rate of 22.90 per cent and later in the year to 23.07 per cent and ended at 19.22 per cent.

Mr Yamoah, who was addressing the media on the market performance for last year, said even though a drop was recorded in interest rate in 2013, it could not be said to be very good for the market.

He explained that those markets thrived on subdued interest rates and, therefore, an interest rate in the region of 19 and 23 per cent was too high and not conducive for the market.

He expressed the hope that interest rate would decrease further in 2014 for better market performance.

Exchange rate performance

Mr Yamoah said the exchange rate for Ghana in 2013 was bad. “We started at $1 to GH¢1.8800 as the official rate in January and ended at $1 changing at GH¢2.1616 in December.”

He indicated that approximately 15.0 per cent depreciation was recorded as far as the dollar was concerned.

The managing director noted that the 15 per cent depreciation was not good for either the market or business.

Mr Yamoah also said as far as exchange rate was concerned, the more the Ghana Cedi stabilised against the major currencies, the better it would be for the stock exchange market.

He added that inflation was a bit subdued in 2011 and 2012, but in 2013 it stood at 10.1 per cent in January and 13.20 at the end of November 2013.

According to Mr Yamoah there were two indexes that indicated performance of the GSE and these were the GSE-Composite Index that attracted all listed securities, and the GSE-Financial Stock Index that attracted only the listed financial companies.

He said the Composite Index recorded approximately 79 per cent in 2013, as against 24 in 2012 and the Financial Index also recorded approximately 72 per cent in 2013 as against 2.01 in 2012.

« Previous | Next »
News Categories
Site Menu