The Ghana Stock Exchange ( GSE ) is Ghana's main stock exchange. This exchange was established in July 1989 with trading started in 1990. It currently lists 42 equities (of 37 companies) and 2 corporate bonds. All types of securities may be listed. Criteria for the list include capital adequacy, profitability, stock spread, year of existence and management efficiency. GSE is located inside Cedi House in Accra.
Video Ghana Stock Exchange
History and operations
From the beginning, the GSE list has been included in the main index, the GSE Shared Stock Index. In 1993, the GSE was the sixth best performing stock market index, with 116% capital appreciation. In 1994, this was the best index that undertook the stock market among all emerging markets, gaining 124.3% at its index level. The 1995 index's growth was a disappointing 6.3%, in part because of high inflation and interest rates. The index growth for 1997 was 42%, and at the end of 1998 was 868.35 (see Review 1998 for more information). In October 2006 the market capitalization of the Ghana Stock Exchange was around 111,500 billion cedis ($ 11.5 billion). As of December 31, 2007, the GSE market capitalization was 131,633.22 billion cedis. In 2007, the index was valued at 31.84% (see the "Publications" section of the GSE website for more information).
The current manufacturing and brewing sector dominates the exchange. A distant third is the banking sector while other listed companies fall into the insurance, mining and oil sectors. Most of the companies listed on GSE are Ghana but there are some multinational companies.
Although non-resident investors can handle securities listed on the exchange without obtaining prior exchange control permits, there are some restrictions on portfolio investors who are not living in Ghana. The current limitations on all types of non-resident investor ownership (whether institutional or individual) are as follows: a single investor (ie non-Ghanaian and living abroad) is allowed to hold up to 10% of each equity. Second, for every equity, foreign investors can save up to a cumulative total of 74% (in special circumstances, this limit is negligible). Limitation also excludes trading in Ashanti Goldfields stock. This restriction was abolished by the Foreign Exchange Act, 2006 (Act 723).
There is an 8% tax cut on dividend income for all investors. Capital gains on securities listed on the exchange will remain exempt from taxes until 2015. The exemption of capital gains applies to all investors in the exchange. There are no exchange control rules on the delivery of original investment capital, capital gains, dividends, interest payments, returns and other related income.
Potential changes in the stock include the introduction of automatic trading and listing of several state banks. The Bank of Ghana plans the development of mutual funds, trust units and municipal bonds on the next date. This change aims to make the exchange more relevant, efficient and effective. The exchange is also involved in preparing the draft law on collective investment vehicles.
Maps Ghana Stock Exchange
Clock
The exchange has a pre-market session from 9:30 am to 10:00 am and continuous auction sessions from 10:00 am to 3:00 pm on all days of the week except Saturdays, Sundays and holidays announced by the previous exchange.
Licensed broker
Licensed dealing member websites, or "LDMs", of the Ghana Stock Exchange typically include detailed information on exchange, daily rates, corporate research, and further links. GSE licensed brokers include:
- (in English) Stanbic Bank Ghana
- (in English) IC Securities
- (in English) Databank Group
- (in English) Gold Coast Securities
- (in English) NTHC
- (in English) Securities Discount Broker
- (in English) FirstBanC Brokerage Services Ltd
- (in English) Merban Stockbrokers Ltd
See also
- List of Ghana companies
- GSE Composite Index
- List of African stock exchanges
- List of stock exchanges
- List of stock exchanges at Commonwealth of Nations
References
Source of the article : Wikipedia
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