‘Use capital market to raise long-term finance’
The Ghana Stock Exchange (GSE) has called on the key state institutions such as the Volta River Authority, Electricity Corporation of Ghana, the Gridco and metropolitan authorities to use the exchange to raise long-term capital to finance their operations.
According to the exchange seeking short-dated funds to finance long-term projects do not augur well for the development of business and enterprises which some key corporations and companies find themselves in.
The Chairman of the Governing Council of the GSE Dr Sam Mensah speaking at the 23rd annual general meeting of the exchange in Accra stated that the exchange had made wide ranging recommendations to government which if implemented would see a significant growth in the domestic market bond market.
Giving the market performance for the period under review, Dr Mensah said volume of shares traded during 2012 stood at 218 million valued at GH¢102.1 million down from the 2011 numbers of 419 million shares valued at GH¢446.6 million.
These Dr Mensah explained was due to the macroeconomic difficulties coupled with the fact that 2012 was an election year which resulted in a major slow-down on the local bourse.
The return on the market as measured by the GSE Composite Index for 2012 stood at 23.81 per cent against a negative 3.10 per cent for 2011 while the GSE Financial Stock Index recorded a gain of 20.48 per cent with a negative growth of 13.69 per cent for 2011
Market capitalisation at the end of 2012 was GH¢57.3 billion, an increase of 21 per cent over the value of GH¢47.3 billion at the end of 2011.
At the beginning of 2012 the exchange commenced the publication of the domestic capitalisation of the market in addition to the overall market capitalisation.
The domestic capitalisation excludes the value of companies that have their primary listing on other international markets and only have a secondary listing on the market.
These companies include the likes of Tullow plc, AngloGold Ashanti Ltd, Golden Star Resources and Ecobank Transnational Incorporated.
By Lloyd Evans/Graphic Business/Ghana
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