Activities on Ghana’s Stock Market dwindled consistently in ten months in the year 2019. This was reported by the Central Bank of Ghana in its economic and financial data summary released in November, 2019. The report captured a downward trend in the GSE Composite Index (GSE-CI) and GSE Financial Stock Index (GSE-FSI) from January to October, 2019.
Market capitalization of the Composite Index as of October 2019 was GHC 55.5 billion Ghana Cedis with Year-to-date Growth of −9.2% as opposed to GHC 64.3 billion Ghana Cedis with Year-to-date Growth of 9.4% in 2018. In this same vein, Financial Stock Index also trended downwards from GHC 15.8 billion in 2018 to GHC 11.4 billion as of October 2019.
Ghana Stock Exchange is an aggregator and an intermediary established by law to regulate companies and institutions who seek to raise money from the public by instrument issuing shares to the general public. It is noteworthy to juxtapose the dwindling activities on the stock exchange to the shock emanating from the on-going financial sector clean-up.
Basically, this downward performance shows that, households (individuals) and business units are holding cash in hand or simply keeping monies under the pillows. This could be attributed to panic which had characterised the banking sector clean-up which most individuals and businesses have had their investments locked up in defunct or forcefully closed-down institutions.