The Ghana Stock Exchange (GSE) maintained its bullish momentum at the close of the first weekday of trading in August, with the benchmark GSE Composite Index (GSE-CI) breaching the 7,000-point mark.
The index added 11.24 points, or 0.16%, to settle at 7,005.69, pushing its year-to-date (YTD) gain to an impressive 43.31%.
This milestone reflects renewed investor confidence and sustained positive sentiment in the local equities market, despite global and domestic economic headwinds.
On the trading floor, activity levels saw a dramatic improvement in volume. A total of 5,454,545 shares, valued at GHS 19,067,113.90, exchanged hands. This represented a staggering 468% increase in traded volume compared to the previous session on Friday, August 1.
However, the surge in share volumes was accompanied by a 13% decline in turnover, suggesting that while more shares were traded, the average price per share was lower. Market watchers believe this pattern indicates growing retail investor participation, as smaller trades dominate the landscape.
MTN Ghana emerged as the most actively traded stock of the day, with a remarkable 5.17 million shares changing hands. The telecom giant also registered a modest price appreciation of 0.28%, closing at GHS 1.79 per share.
Republic Bank Ghana followed with 114,204 shares traded, while Ecobank Transnational Incorporated (ETI) recorded 102,779 shares. CalBank also featured in the top-volume list, with 21,658 shares traded. The dominance of MTN Ghana in both volume and value terms highlights its pivotal role in sustaining market liquidity.
Gainers and Losers
Of the 22 listed equities that participated in trading, three recorded price gains while only one posted a loss. Ghana Oil Company (GOIL) led the gainers with a 0.46% price jump, ending the day at GHS 2.17 per share. GCB Bank followed closely with a 0.21% rise to GHS 4.85.
SIC Insurance Company was the day’s sole loser, shedding 0.95% to close at GHS 0.21 per share. Market analysts say the minimal losses recorded further underscore the strength of investor sentiment.
Financial Stocks Maintain Upward Trajectory
The GSE Financial Stocks Index (GSE-FSI) inched up by 0.01% to close at 3,428.53 points. This brings its YTD gain to an impressive 44.01%, even though it posted a marginal 0.15% decline over the past four weeks.
Analysts attribute the resilience of the financial index to strong earnings reports from banks and insurance companies, improved asset quality, and the Bank of Ghana’s recent monetary policy rate cut to 25%, which has fueled optimism in the financial sector.
The market capitalization of the GSE remained steady at GHS 146.3 billion, underlining the robustness of the equity market’s valuation. While global markets have experienced volatility amid shifting interest rate expectations and commodity price fluctuations, the GSE has benefited from domestic stability and a renewed focus on local investment.
Sustained Gains Over Short and Medium Term
The GSE-CI’s 1-week gain of 5.43% and 4-week gain of 9.18% point to sustained short-term momentum. This trajectory is largely driven by improved macroeconomic indicators, including easing inflation, currency stability, and strong corporate earnings.
Institutional investors are also showing increased interest in Ghanaian equities as a hedge against fixed-income market volatility, given the potential for capital appreciation in a growing market.
Market experts believe the breach of the 7,000-point threshold is psychologically significant for both retail and institutional investors. Crossing this mark signals that the bullish trend is still intact and could attract more capital inflows into the market, said a local market analyst.
Looking ahead, traders and investors will be closely monitoring earnings reports, particularly from blue-chip stocks in the telecom, banking, and oil marketing sectors. The Bank of Ghana’s future monetary policy decisions, coupled with global commodity price movements, will also be key drivers of market direction.
If the current trend continues, analysts say the GSE could close the year with one of its best annual performances in recent history, cementing 2025 as a landmark year for Ghana’s equities market.
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