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A total of 2 billion GH ¢ was raised on the Ghana Stock Exchange (GSE) in 2018. It is fiscal 2017, when no capital has been raised on the local stock exchange .
This amount was raised through the registration of two new companies, which raised 1.15 billion GH ¢ and the issue of additional shares of nine other companies.
The nine companies, including Access Bank, Societe Generale, Republic Bank and Standard Chartered Bank, raised a total of 906 million GH ¢.
The two new companies listed last year are MTN Ghana, listed on the main stock exchange after raising a record of 1.14 billion GH ¢ and Digicut, listed on the Ghana Alternative Market (GAX) after raising 28 million of GH ¢.
This was revealed by the GSE chief executive, Mr Kofi Yamoah, during a press briefing in Accra last Thursday.
The market also registered 19 new listings of corporate bonds and bonds worth 1.07 billion GH ¢ in 2018, up from 18 (6.38 billion GH in 2017).
The 2017 figure includes the proceeds of 5.39 billion GH ¢ E.S.L.A.
The number of notes and bonds issued by the Ghanaian Government also increased to 58, amounting to 21.33 billion GH, compared to 56 for the amount of 17.11 billion GH recorded in 2017.
Ghana Fixed Income Market
Ghana's fixed income market (GFIM) recorded a total of 55.125 million GH ¢, compared to 44.295 million in 2017.
These included two Government of Ghana foreign exchange bonds rated at US $ 221 million.
The nominal value of corporate bonds and bonds listed in 2018 amounted to 6.33 million GH ¢ compared to 5.527 GH ¢ recorded in 2017.
Several bills from the Government of Ghana, the Bank of Ghana and cocoa were also on the list.
Failure of the energy bank
Despite the successes of the exchange regarding registration, there were also disadvantages. For example, the initial public offering of Energy Bank failed because the bank was not able to raise the amount required to be quoted in the market.
The bank wanted to raise 348 million GH ¢ and the minimum amount required for the offer to be declared favorable was 68 million GH. The bank did not manage to increase this amount.
Explaining the reasons for this failure, GSE's deputy general manager, Ekow Afedzi, said: "When we say that a company is raising capital, it means that the money is collected from the investing public and not of the exchange. "
"The public must therefore be interested in your business. They must be interested in the future of the company and there are so many reasons that will influence their decision, "he said.
He said that some of the reasons that influenced the decision of the public investor were the economy, the investment environment and interest rates.
"If you look at the environment in 2018, you'll know why people were not interested in buying stocks. People were interested in guaranteed returns and fixed income instruments, "he said.
GSE 2018 Performance
The composite GSE index remained stable in 2018, registering negative growth of -0.29%, while the GSE financial index lost 6.79%, compared to 52.73% and 49.51% respectively registered in 2017.
The market has, however, seen a strong interest from companies in issuing fixed income securities and a host of corporate transactions, including rights and bonus issues by publicly traded banks to new capital requirement of 400 million GH.
The year 2018 also saw a representation of the telecommunications industry at the local stock exchange as a result of the listing of the telecommunications giant, MTN.
In contrast, three non-performing equity securities were removed from the list.
Mr. Yamoah explained that the composite and financial indices underperformed due to high interest rates, strong US dollar versus cedi, focus on recapitalizations and cleanup. in the banking sector by the BoG, and mixed results the main stocks that govern the GSE composite index.
Outlook for 2019
Regarding the outlook for 2019, he stated that the GSE intended to badist the BoG, the central securities depots, the Ministry of Finance and the brokers to finalize the works and to implement repo transactions in the securities market. Ghana's fixed income.
He also said that he also planned to introduce securities lending and borrowing activities, to deploy a mobile application for secondary trading of listed securities and to improve the compliance of the market by brokers and issuers through the use of technology.
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