The Ghana Stock Exchange (GSE) ended the final trading session of the week on a positive note, buoyed by gains in key financial stocks.
The GSE Financial Stocks Index (GSE-FSI), which tracks the performance of financial equities on the local bourse, rose by 0.55% on the last trading day, capping off a weekly increase of 1.08%. This performance further cements the strong investor confidence in Ghana’s financial sector despite ongoing economic uncertainties.
For the week under review, the GSE-FSI advanced to 3,129.19 points, marking a robust year-to-date gain of 31.43%. This was complemented by the benchmark GSE Composite Index (GSE-CI), which climbed by 118.77 points or 1.95% on the day to close at 6,214.34 points. On a weekly basis, the GSE-CI gained 2.52%, reflecting increased investor activity and optimism across various sectors.
The GSE’s current year-to-date return of 27.12% underscores the market’s resilience and recovery from earlier headwinds. While the 4-week trajectory for the GSE-CI shows a minor dip of 0.06%, the overall trend remains upward, powered by strong financial and telecom performances.
MTN Ghana and Ecobank Transnational Drive Gains
Leading the market rally were MTN Ghana and Ecobank Transnational Inc. (ETI), which recorded significant price appreciations. MTN Ghana’s share price rose by 3.31%, consolidating its role as a major driver of GSE performance. The telecom giant also topped the volume charts, with 988,763 shares traded.
Ecobank Transnational followed with a 2.27% gain, reinforcing investor appetite for financial stocks amid promising outlooks in the banking sector. The financial behemoth also posted moderate trading volumes of 54,086 shares, indicating sustained market interest.
TotalEnergies Marketing Ghana and CalBank also featured prominently in trading activity, recording volumes of 200,000 and 45,451 shares respectively, though neither registered price movements during the session.
The GSE’s total market capitalization surged to GHS 137.8 billion, supported by rising equity prices and investor demand. A total of 1,337,622 shares were traded across 10 listed equities on the final trading day, representing a market value of GHS 8,271,702.87.
While the volume of shares traded saw a substantial 291% increase compared to the previous trading day, overall turnover declined by 46%. This divergence indicates that although more shares changed hands, they were largely from lower-priced stocks, leading to a dip in total value.
One Decliner
Despite the broader market gains, the NewGold ETF was the sole decliner on the day, shedding 2.08% in value. The drop in the gold-backed exchange-traded fund reflects fluctuations in global commodity markets and investor repositioning toward equities offering short-term capital gains.
The weekly performance of the GSE, particularly within the financial sector, reflects growing investor confidence in Ghana’s economic recovery path. With inflation moderating and interest rates showing signs of stabilization, financial institutions appear well-positioned for growth, making them attractive to both retail and institutional investors.
The 31.43% year-to-date gain in the financial index signals sustained interest in the banking and insurance sectors, many of which have shown improved profitability and capital adequacy in recent quarters.
As the GSE closes another strong week, attention will shift to upcoming earnings reports and macroeconomic developments that could shape investor sentiment in the coming weeks. For now, the financial sector remains the bedrock of the market’s upward momentum, helping to power the GSE to a 1.08% weekly rise in the Financial Stocks Index.
With MTN Ghana and Ecobank Transnational at the forefront of this rally, market watchers will be keenly monitoring whether this positive trajectory can be sustained into the next quarter.
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