GSE Market Cap Sheds GHS2 Million as Trading Volume Plunges 50%

The Ghana Stock Exchange (GSE) began the week with a lacklustre performance as market capitalization dipped by over GHS2 million, settling at GHS147.7 billion.

Trading activity slumped sharply, with a 50% decline in volume and a 51% drop in turnover compared to the previous session on Friday, September 5. The decline underscores growing investor caution, raising questions about near-term market momentum.

At the close of trading on Monday, 8^th September 8, 2025, a total of 4,414,795 shares exchanged hands, corresponding to a market value of GHS15,794,645.19. This marks a steep fall from the previous session, reflecting a weaker appetite for equities at the start of the week.

In all, 15 equities participated in trading, but the market saw neither gainers nor losers. This flat performance, despite the notable declines in turnover and trading volume, suggests subdued investor sentiment with limited speculative activity.

MTN Ghana

MTN Ghana once again proved to be the most liquid stock, dominating the trading session with 4.22 million shares traded. Its performance far outpaced other equities, reinforcing the telecom giant’s position as a cornerstone of liquidity on the local bourse.

Ecobank Transnational followed distantly with 128,393 shares, while SIC Insurance Company and Republic Bank Ghana recorded 33,482 and 14,321 shares, respectively. These figures highlight the concentration of market activity around a few major stocks, leaving the broader market relatively quiet.

Index Performance

The benchmark GSE Composite Index (GSE-CI) closed unchanged at 7,172.44 points. However, behind this apparent stability lies a trend of gradual erosion. The index recorded a 1-week loss of 2.15% and a 4-week loss of 3.23%. Nonetheless, the year-to-date gain of 46.72% remains impressive, reflecting the strong rally the market has experienced over the course of the year.

Meanwhile, the GSE Financial Stocks Index (GSE-FSI) showed resilience. It maintained its value at 3,444.30 points, marking a weekly gain of 0.95% and a four-week gain of 0.87%. The index has now recorded a remarkable 44.67% gain since the start of the year, underlining the strength of Ghana’s financial sector stocks.

The contrasting signals in the indices, coupled with the sharp fall in turnover, indicate that investors may be taking a wait-and-see approach. The absence of price movers further highlights the cautious mood.

Analysts believe the volatility in trading volumes could be linked to macroeconomic uncertainties, particularly concerns over currency stability and inflationary pressures, which continue to shape investor decisions.

Outlook

While Monday’s session painted a subdued picture, the overall year-to-date performance of the market remains positive. The resilience of the financial stocks index suggests that the banking and insurance sectors may continue to provide stability in the coming weeks.

However, analysts warn that if trading volumes remain depressed, it could erode confidence and weigh down market momentum. For now, investors are likely to watch upcoming economic policy signals and company earnings releases for direction.

The Ghana Stock Exchange’s start to the week highlights the fragile balance in market sentiment. With capitalization shedding over GHS2 million and trading volumes halved, the market is clearly experiencing a moment of pause. Yet, with financial stocks holding firm and the year-to-date gains still robust, the GSE retains the potential for a rebound—provided investor confidence can be rekindled in the weeks ahead.