Ghana Stock Exchange Reaches Record GH¢80bn Market Capitalisation

In April 2024, the market capitalisation of the Ghana Stock Exchange (GSE) surged to an unprecedented GH¢80.20 billion, marking a significant milestone.

This remarkable increase was driven by substantial gains in the share prices of various companies, underscoring the positive market sentiment and bolstering investor confidence.

As outlined in the GSE’s April 2024 Summary of Market Activities, the GSE Composite Index experienced a notable surge of 6.68 per cent during the month, contributing to a year-todate gain of 17.7 per cent. Additionally, the Financial Stock Index saw a gain of 2.14 per cent.

Among the standout performers in April 2024 were GCB with a 23.03% increase, MTN Ghana with 10.76 per cent, Camelot with 10 per cent, Access Bank with 7.87 per cent, New Gold with 5.72 per cent, SIC with 4.17 per cent, Unilever with 1.27 per cent, BOPP with 0.33 per cent, and TotalEnergies with 0.11 per cent growth.

Simultaneously, the Ghana Fixed Income Market experienced a surge in trade volumes, reaching 11.34 billion, a substantial 98.47 per cent rise compared to the previous year’s 5.71 billion.

Notably, long-term government securities contributed 30.10 per cent to the overall market activity, while short-term government instruments made up 69.51 per cent of the market’s activity during the period under review.

The Food and Beverages Association of Ghana has highlighted the significant economic challenges facing businesses in the country.

According to the association, these challenges, combined with Ghana's tax regime, have compelled several multinational companies to downsize their operations and even relocate entirely.

Mr Samuel Aggrey, the General Secretary of the association, pointed out that the current economic turmoil and tax structure in Ghana have been major factors which have influenced the decisions of companies like Big Nivea, Dark and Lovely, Globo, and Jumia to relocate to neighbouring countries with more favourable tax environments.

Speaking on the Ghana Yensom Morning show on Accra 100.5 FM hosted by Otafrigya Kwesi ApeaApreku, Mr Aggrey emphasised that these companies were attracted to countries with lower tax rates compared to Ghana’s.

He stressed that while the neighbouring countries may not offer anything significantly different, their tax regimes make them more attractive destinations for businesses seeking to minimise costs and remain competitive.

Mr Aggrey expressed concern over the situation, noting that if Ghana's current economic challenges are not addressed, more industry players may follow suit or resort to downsizing to cope with the unfavourable business environment.

He urged policymakers to take decisive actions to reverse the economic downturn and create a more conducive environment for businesses to thrive and contribute to the country's growth