Ghana Stock Exchange – GSE
Officially launched on January 11, 1991, GSE (Ghana Stock Exchange) is the Ghana’s electronic stock market. GSE is an anonymous company under the Ghanaian company code 1963 (Act 179).
The Ghanaian electronic stock market is administered by:
- GSE Securities Depositery (GSE central Depositary) whose main objective is to offer deposits services to complete automated trading of securities and to effectively manage compensation and settlement-delivery systems of titles.
- The Securities and Exchange Commission (SEC) proceeds to the control and the regular inspection of Associate Members and all the commercial contributors (SGI, business contributors, OCPVM, etc.).
The following actors are involved in the Ghanaian market:
- The General intermediation companies having obtained the exclusive authorization to place orders on the securities market.
- The Associate members (Individual or entity) having met the eligibility requirements to be a member of the stock market. On the other hand, this entity cannot in any case place orders
- The Government Securities Traders (entity) having been authorized by the Bank of Ghana and registered on the stock market to process government securities.
Thirty-five (35) companies are listed on the Ghanaian stock market with a capitalization figure of 57,116.87 million (GHç) in December 20015. The trading hours range from 10 am to 3 pm with the exception of holidays with a pre-opening period from 9:30 am to 10:00 am. Transactions can be finalized on the basis of J+0 or J+1
Three types of securities are traded on the Ghanaian stock market:
- Private, sovereign or public sector bonds
- Common funds of investment and mutual funds
The two indices of the Ghana Stock Exchange (GSE) are:
- GSE Composite Index (GSE-CI) represents the volume of the weighted average of the shares closing prices.
- GSE Financial Stock Index (GSE-FSE) is composed of all the financial sector companies listed on the Ghanaian stock market.
In order to operate its activities effectively, the Ghanaian stock market (GSE) has created three sub-markets specific to securities:
- The securities market (shares / bonds): This market is very important in the functioning of the Ghanaian stock market. The shares and bonds are traded on this market to raise capital (short and medium term) to companies, governments etc.
- Ghana Fixed Income Market (GFIM): This market has been designed to facilitate transactions in both fixed and floating income securities. Created by the key actors in the Ghanaian financial sector, including the Ghana Stock Exchange, the Ghana Bank, the Ghana securities central depository, Ghana Bankers Association, the Finance Minister, Association of Financial Markets and Management Companies of intermediation of the Ghanaian stock market. GFIM operates its activities under the license and responsibility of the Ghana stock exchange (GSE). The regulating organ on this market is the stock exchange operations commission. The Bank of Ghana monitors and supervises the market transactions on the questions related to the eligibility of traders as well as the compliance respect of the products to be listed on the stock exchange.
- Ghana’s alternative stock market (GAX): This market is specialized in providing financial support to companies with high potential. GAX allows any type of company (small, medium and start-up) to raise funds in the short and medium term.