--- title: "GSE Composite Index: Methodology" description: "GSE Composite Index is maintained by Ghana Stock Exchange and covers all companies listed on the Ghana Stock Exchange weighted by market capitalisation." canonical: https://www.getswoopr.com/stocks/indexes/gse-composite/ source: "Swoopr Investment: https://www.getswoopr.com" --- # GSE Composite Index: What It Measures and How It Is Built ## Direct Answer > The GSE Composite Index is a rule-based measurement of all companies listed on the Ghana Stock Exchange weighted by market capitalisation, maintained by Ghana Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The GSE Composite Index covers all companies listed on the Ghana Stock Exchange weighted by market capitalisation, within the Ghana market. Ghana Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target. ## How constituents are weighted Market capitalization weighted: each constituent is given weight according to its market capitalization, and ordinary shares are included at total market capitalization. The calculation uses the volume weighted average closing price of each stock. Base date is 31 December 2010 with a base value of 1000. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion All ordinary shares listed on the GSE are included, with the exception of those of listed companies that also have shares listed on other markets. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## The rule that surprises people Since 4 January 2011 the closing price feeding the index is the volume weighted average price of each equity for the trading day. ## References - [Ghana Stock Exchange: Ghana Stock Exchange, PR. 002/2011 New Calculation of Closing Prices of Listed Equities and Construction of New Indices](https://gse.com.gh/?p=30002), as published 2011. Every rule described on this page is taken from this document. ## Current GSE Composite Index constituents Ghana Stock Exchange publishes and licenses the GSE Composite Index constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Ghana Stock Exchange: official GSE Composite Index page](https://www.jse.co.za/services/market-data/indices) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the GSE Composite Index? Ghana Stock Exchange maintains the GSE Composite Index and publishes the methodology document that defines its eligibility and weighting rules. ### What does the GSE Composite Index measure? It measures all companies listed on the Ghana Stock Exchange weighted by market capitalisation. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current GSE Composite Index constituents? Ghana Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.