A comparative analysis of the GSE Composite Index (GSE-CI) and the JSE Top 40 Index performance during COVID 19

Abstract

This study evaluates the performance of the Ghana Stock Exchange Composite Index (GSE- CI) and the Johannesburg Stock Exchange Top 40 Index (JSE Top 40) during the COVID-19 epidemic by means of comparative research. The study assesses stock market behavior across important indicators including volatility, liquidity, macroeconomic variables (e.g., GDP growth, inflation, interest and exchange rates), and resilience to market shocks using quantitative techniques based on Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM). The results show that although both indexes saw notable early 2020 drops, the JSE Top 40 showed better recovery and less volatility than the GSE-CI. While liquidity and GDP growth had a more favorable effect, especially in the JSE, regression and correlation studies show that inflation and exchange rate volatility harmed both markets. By stressing the importance of macroeconomic stability, investor education, and better market infrastructure to strengthen market resilience and investment strategy in African economies, the report offers insightful analysis for investors, legislators, and regional financial market participants.