The Ghana Stock Exchange has closed the year with one of its strongest performances in recent history, reinforcing renewed investor confidence in the domestic capital market.
The benchmark GSE Composite Index delivered an exceptional year to date return of 79.4 percent, positioning the exchange among the best performing equity markets globally. Market capitalization stood at GHS 172 billion, underscoring the scale of value created for investors over the year.
This remarkable performance reflects a year marked by improving macroeconomic sentiment, strong corporate earnings in key sectors and a gradual return of both local and foreign investor participation.
Composite Index Posts Stellar Growth
The GSE Composite Index ended the year at 8,770.25 points after edging up 6.57 points, equivalent to a 0.07 percent gain, in the final week of trading. While the week on week movement appeared modest, the broader trend told a compelling story of sustained growth. The index recorded a one week gain of 0.13 percent and a four week gain of 1.86 percent, consolidating its impressive year long rally.
The near 80 percent surge over the year reflects strong price appreciation across several large and mid cap equities, supported by improved liquidity conditions and renewed optimism about Ghana’s economic recovery trajectory.
Financial Stocks Lead the Rally
Financial equities emerged as the standout performers, driving much of the market’s upward momentum. The GSE Financial Stocks Index closed the year at 4,647.17 points, after gaining 0.19 percent in the final trading session. Over a four week period, the index rose by 4.28 percent, while the year to date return reached an extraordinary 95.19 percent.
Banks and insurance companies benefited from stabilising interest rates, improved asset quality expectations and stronger earnings outlooks. The sharp rebound in financial stocks signaled growing investor confidence in the resilience of Ghana’s financial sector following recent economic adjustments.
The GHS 172 billion market capitalisation milestone highlights the depth of value unlocked on the exchange over the year. This expansion was driven by sustained price appreciation rather than new listings alone, suggesting genuine gains in investor wealth.
The growth in market capitalisation also reflects the strategic importance of the GSE as a platform for long term capital formation, particularly at a time when alternative investment options have faced heightened volatility.
CalBank Stands Out on Final Trading Day
Trading activity on the final day of the year was relatively subdued, yet it produced a clear standout performer. Out of 20 listed equities that participated in trading, CalBank emerged as the sole gainer, recording a 3.23 percent appreciation in its share price. The stock also led in trading volume, with 322,487 shares exchanged.
MTN Ghana followed with 178,655 shares traded, while Ecobank Transnational and SIC Insurance Company recorded volumes of 97,515 and 60,070 shares respectively. The concentration of activity around a few counters reflected cautious positioning by investors ahead of the year end.
Trading Volume and Turnover Decline
Despite the market’s strong annual performance, the final trading session highlighted a slowdown in activity. A total of 673,763 shares were traded, with a market value of GHS 1,342,259.03. Compared with the previous trading day, this represented a 54 percent decline in volume and a 75 percent drop in turnover.
Market analysts attributed the decline to profit taking, portfolio rebalancing and the seasonal slowdown typical of year end trading. Importantly, the drop in activity did little to detract from the broader narrative of a highly successful year for equities.
Outlook for the New Year
The strong close to the year has set a positive tone for the outlook ahead. Analysts expect continued interest in fundamentally strong stocks, particularly within the financial sector, while improved macroeconomic stability could attract fresh capital into the market.
While short term volatility cannot be ruled out, the historic 79.4 percent gain in the Composite Index has reaffirmed the Ghana Stock Exchange as a compelling destination for long term investors seeking growth opportunities in frontier markets.
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