The Ghana Stock Exchange says it is targeting major state-owned utilities such as Volta River Authority, GRIDCo and Electricity Company of Ghana (ECG) to be early issuers when the planned revitalisation of the bond market is completed.

The National Bond Market Committee (NBMC), established by the Finance Ministry last year, has already made recommendations which when implemented will accelerate the development of the bond market which has largely remained dormant.

Speaking at the GSE’s Annual General Meeting, Dr. Sam Mensah, Chairman of the GSE’s Governing Council lauded the NBMC for making “wide ranging recommendations to government which when implemented will see a significant growth in our domestic bond market.”

Already some recommendations of the committee such as regular publication of an issuance calendar and extension yield of the curve, are being implemented. According to Dr. Mensah, the revitalised bond market will also target some key metropolitan, municipal and district assemblies (MMDAs).

In a tariff proposal submitted to the Public Utilities Regulatory Commission (PURC) early this year, the ECG said while it is required to pay 26.5 pesewas per kilowatt hour to purchase power from the seven Independent Power producers (IPPs) this year, the current bulk generation tariff provides for only 10.53 pesewas per kilowatt hour.

The Electricity Company of Ghana (ECG) is effectively asking for a 166 percent increase in its current tariff, which would help the company bridge its US$170million annual funding gap. The Volta River Authority (VRA) is seeking an increase of 137.5 percent; Ghana Grid Company Limited, 39.36 percent; and the Ghana Water Company, 99.39 percent.

GSE Managing Director Kofi Yamoah touching on the bourse performance for the year under review said the GSE-Composite Index notwithstanding the country’s macro-economic frailties, ended 2012 with a gain of 23.81% compared to negative 3.10% the previous year.

The positive movement in the CI, Mr. Yamoah stated, could be attributed to the strong results of many of the listed companies. Nevertheless, the volume and value of shares traded dropped by 51% and 23% respectively.

In 2012, the volume of shares traded was 218million valued at GH¢102million compared to 402million shares valued at GH¢447million for the previous year 2011. The total market capitalisation and domestic market capitalisation for 2012 went up 21% and 22% to close at GH¢57.26billion and GH¢57.26billion respectively. The domestic capitalisation excludes the value of companies that have their primary listings on other international markets and only have a secondary listing on the GSE.

Although the market saw only one listing last year, Mr. Yamoah noted that the bourse will still pursue new listings in the equity and corporate bond category. “We will follow through discussions towards actualising the listing of other new products such as index-based derivatives,” he added.

The Group, which comprise of the Exchange and its subsidiary GSE Securities Depository Company Ltd, made a modest surplus after tax of GH¢418,277 up from the 2011 amount of GH¢123,305—mainly greater cost control against background of the very low level trading activity experienced throughout 2012.