GSE Market Capitalization Hits GHS 143.4 Billion

The Ghana Stock Exchange (GSE) continued its strong performance in recent sessions, with its market capitalization rising to GHS 143.4 billion, reflecting growing investor confidence in Ghana’s equities market.

The trading session on Thursday, May 15, saw notable developments in market indices, trading volumes, and share performances, signaling renewed optimism among market participants.

At the close of the trading day, a total of 1,480,930 shares were exchanged on the Accra bourse, corresponding to a market value of GHS 5,041,921.56.

This marked a 16% increase in traded volume compared to the previous session on Wednesday, May 14. However, turnover experienced a steep 70% decline, highlighting a shift in investor interest toward lower-priced or less capital-intensive equities.

Despite the dip in turnover, the benchmark GSE Composite Index (GSE-CI) surged by 75.94 points, representing a 1.15% gain to close at 6,683.53.

The GSE-CI’s robust performance continues a trend of impressive gains across various timeframes: a 1-week gain of 4.14%, a 4-week gain of 10.92%, and a remarkable year-to-date (YTD) gain of 36.72%. These cumulative increases suggest sustained positive sentiment and capital inflows into the Ghanaian equity market, driven largely by strong performances from leading stocks.

Similarly, the GSE Financial Stocks Index (GSE-FSI), which tracks the performance of listed financial institutions, recorded a modest increase of 0.06% to reach 3,168.48 points. This index has also seen notable returns, with a 1-week gain of 0.96%, a 4-week gain of 3.5%, and a YTD gain of 33.09%. These indicators point to a recovery and growing investor trust in the financial sector, which has historically been one of the most active components of the GSE.

MTN Ghana Dominates

On the trading floor, 11 listed equities participated in the session, with market movement skewed slightly positive. MTN Ghana emerged as the most actively traded equity, with 1.32 million shares changing hands. The telecommunications giant also led the gainers, appreciating by 2.02% in value. MTN Ghana’s dominance in trading activity underscores its significance in the market and the confidence it continues to command among retail and institutional investors.

Following MTN Ghana in trading volume was Ecobank Transnational Inc. (ETI), which saw 88,770 shares traded. CalBank followed closely with 62,949 shares, while GCB Bank recorded a modest 5,364 shares traded. Despite the lower volume, GCB Bank recorded a 0.79% increase in its share price, joining MTN Ghana as one of the two gainers on the day.

On the downside, NewGold ETF was the only equity to post a loss during the session, declining by 0.5%. The ETF’s dip is notable given the broader positive market performance and suggests investor caution regarding commodities-backed instruments amidst a volatile global macroeconomic environment.

Sustained Momentum

The overall performance of the GSE reflects a steady rebound in market activity and valuation following a challenging macroeconomic backdrop in previous years. The sustained momentum seen in both the GSE-CI and GSE-FSI suggests growing investor appetite for equities, driven by improved corporate earnings, regulatory reforms, and Ghana’s ongoing economic recovery.

The increase in market capitalization to GHS 143.4 billion serves as a significant milestone, underscoring the depth and resilience of Ghana’s capital market. It also highlights the increasing appeal of the GSE to both local and international investors looking for growth opportunities in West Africa.

Market analysts remain cautiously optimistic about the GSE’s short- to medium-term outlook. While global uncertainties and local economic factors such as inflation and exchange rate volatility pose challenges, the exchange’s performance year-to-date suggests that equities remain an attractive asset class for investors in Ghana.