By Cecil Mensah
The Ghana Stock Exchange (GSE), has maintained that last year’s interest rate regime, between nineteen and Twenty-two percent for the year ending December 31, 2013, was not conducive for businesses even though activities on the stock market were buoyant.
The Managing Director (MD) of GSE, Mr Kofi Yamoah, made this comment at a press conference to announce the Market Performance for the year ended December 31, 2013.
He said, the unstable interest rates, made it impossible for businesses to grow in 2013, even though trading activities in 2013 was the highest, since the inception of the GSE.
He said, the preparations towards regional integration of West Africa market capital markets, continue to stream as part of the stock exchange’s strategy.
“A number of companies, took the decision to come to the market last year and are on course to meeting this goal,” he said
Giving some backgrounds on the stock, he said interest rate became equivalent to 91-day treasury bills, they started the year at 22 .90 percent and reached a peak of23.07 and ended at 19.22 percent.
According to him, exchange rate stood at one United States Dollar to one Ghana Cedis, eighty-eight at the beginning of the year and later became one USD to two Ghana Cedis to sixteen Pesewas, indicating a fall of fifteen percent in 2013.
He said, inflation also stood at 10 percent in January and moved to over thirteen percent at the end of November 2013.
He noted that key reasons for the GSE outstanding performance in 2013, were the listed companies as well as the second tier private Pension Fund Managers’ participation in the stock market beginning from November 2012.
He mentioned the key indicators as GSE –composite index of 78.81 percent for 2013 and 23.81 percent in 2012 and financial stock index as 71.81 percent in 2013 and 20.48 percent in 2012.
Market capitalization was Ghc 61.61 in 2013, 57.26 percent for 2012 and domestic market capitalization was Ghc 11.69 in 2013 and 6.62 percent for 2012 representing a change of 6.8 percent and 76.6 percent respectively.
By Cecil Mensah