GSE Resist Low Turnover with Strong Index Growth

The Ghana Stock Exchange (GSE) started the trading week on a cautiously optimistic note, recording a modest uptick in its benchmark index despite a noticeable drop in trading volume and turnover.
The market’s performance continues to defy short-term fluctuations in activity, underscoring investor confidence and signalling long-term bullish sentiment.
On the first trading day of the week, the GSE Composite Index (GSE-CI) posted a gain of 10.61 points, representing a 0.17% increase to close at 6,435.51 points.
While the uptick may appear minor, it cements a broader positive trend seen across recent weeks. The GSE-CI has now recorded a 1-week gain of 0.3%, a 4-week gain of 4.24%, and an impressive year-to-date (YTD) growth of 31.65%.
The GSE Financial Stocks Index (GSE-FSI) remained flat at 3,428.97 points, showing no change from the previous session. However, it still posted a 4-week gain of 4.3% and a substantial YTD growth of 44.03%.
This indicates continued investor faith in the financial sector, particularly in banks and insurance companies that have demonstrated resilience and strong fundamentals post-Domestic Debt Exchange (DDE).
Perhaps the most striking indicator of the market’s resilience is the current market capitalization, which stands tall at GHS 139.7 billion.
This valuation represents not just the strength of key blue-chip equities like MTN Ghana and NewGold ETF, but also the growing attractiveness of the Ghanaian equities market to both local and foreign investors.
While daily trading figures might fluctuate, the consistency in market capitalization growth indicates that investors remain committed to the long-term prospects of listed firms.
Two Gainers
A total of 17 equities participated in Monday’s trading session. Among them, NewGold ETF and MTN Ghana emerged as the only gainers.
NewGold ETF rose by 1.44%, while MTN Ghana edged up 0.33%. MTN Ghana, the telecom giant and market heavyweight, remains a strong contributor to market activity and continues to provide investors with consistent returns.
On the downside, Unilever Ghana slipped marginally by 0.05%, making it the only loser of the day. The marginal loss suggests limited selling pressure and a generally stable performance across the equities board.
MTN Ghana once again stood out as the most actively traded equity, with 251,556 shares changing hands. This was followed distantly by Ecobank Transnational (7,814 shares), CalBank (3,849 shares), and SIC Insurance Company (3,124 shares). MTN’s overwhelming dominance in volume reflects its strong retail investor base and its status as a bellwether stock on the Ghanaian bourse.
Despite the active showing from MTN, the broader market experienced a notable slowdown in trade volume and value.
Trade Volume
At the end of trading, the GSE recorded a total of 275,496 shares traded, corresponding to a market value of GHS 1,841,618.68. When compared to the previous trading day (Friday, July 11), this represented a 27% decline in volume and a 38% decline in turnover.
Such declines, while not uncommon during quieter trading sessions, may point to cautious investor behavior ahead of mid-year earnings announcements and macroeconomic policy reviews.
Despite a slowdown in trade volume and turnover, the Ghana Stock Exchange demonstrated notable resilience on Monday, bolstered by strong performances from MTN Ghana and NewGold ETF.
The sustained growth of the Composite Index and the robust market capitalization underscore a market that remains attractive, stable, and strategically poised for continued growth.
As investors await mid-year earnings reports and fiscal policy directions, the GSE appears well-positioned to maintain its upward trajectory, driven by investor confidence and strong corporate performance.