The first trading session of February 2025 on the Ghana Stock Exchange (GSE) was marked by a fierce contest between bulls and bears.
However, by the end of the day, the bears emerged victorious, causing a slight dip in key market indices. Despite the minor decline, the overall outlook for the market remains strong, with both the GSE Composite Index (GSE-CI) and the GSE Financial Stocks Index (GSE-FSI) maintaining their year-to-date gains.
At the close of trading on Monday, February 3, 2025, the benchmark GSE Composite Index lost 1.91 points, representing a marginal 0.04% decline, to settle at 5,227.53 points. This pullback comes after a strong performance in January, where the index recorded a one-week gain of 2.83%, a four-week gain of 6.9%, and an impressive year-to-date increase of 6.93%. The dip on the first trading day of February suggests that investors took some early profits while assessing market conditions.
Similarly, the GSE Financial Stocks Index (GSE-FSI) also felt the weight of the bears, shedding 0.11% to close at 2,472.66 points. Despite this setback, financial stocks have had a solid start to the year, boasting a 1-week gain of 2%, a 4-week gain of 3.75%, and a year-to-date gain of 3.86%. The decline in financial stocks was largely influenced by Ecobank Ghana, which was the only equity to register a loss on the day.
Trading Activity and Stock Performance
A total of 10 listed equities participated in trading during the session, with mixed outcomes. While two stocks emerged as gainers, one stock suffered a decline. GCB Bank led the gainers with a 0.31% increase in its share price, reflecting investor confidence in the bank’s performance. The NewGold Exchange Traded Fund (ETF) also posted a marginal gain but remained unchanged in percentage terms.
On the losing side, Ecobank Ghana saw a 1.36% drop in its share price, making it the only stock to record a loss on the day. This dip contributed significantly to the overall decline in the GSE-FSI, as financial stocks play a crucial role in the index’s performance.
Market activity was dominated by MTN Ghana, which recorded the highest volume of traded shares. A total of 426,625 MTN Ghana shares changed hands, reinforcing the telecommunications giant’s position as a key driver of market liquidity. Other active stocks included Ecobank Ghana, which saw 40,000 shares traded, followed by GCB Bank (14,375) and Societe Generale Ghana (2,383).
Improved Trading Volume and Market Turnover
Despite the bearish performance, trading activity on the Ghana Stock Exchange was significantly higher compared to the previous session. A total of 483,839 shares, corresponding to a market value of GHS 1,531,789.26, were traded. This represented a remarkable 187% increase in trading volume and an even more impressive 745% surge in turnover compared to the previous trading day on January 31.
The significant improvement in trading turnover suggests that investor interest in the market remains strong, even as the indices experienced minor pullbacks. This is a positive indication that the GSE continues to attract attention from both retail and institutional investors.
As of the close of trading on February 3, 2025, the market capitalization of the Ghana Stock Exchange stood at GHS 117.1 billion. This figure underscores the strength of the exchange, despite the minor setbacks recorded during the session.
Meanwhile, analysts remain optimistic about the market’s prospects. The GSE has recorded strong gains over the past month, and the dip on the first trading day of February is seen as a temporary correction rather than a reversal of the market’s upward trajectory. The continued resilience of key stocks, coupled with increasing trading activity, suggests that the GSE could sustain its growth momentum in the coming weeks.
The opening session of February 2025 on the Ghana Stock Exchange was a reflection of the ongoing tug-of-war between bulls and bears. While the bears had the upper hand on the day, leading to a slight dip in market indices, the overall outlook remains positive. With impressive year-to-date gains and rising trading activity, the GSE continues to show signs of strength. Investors will be keenly watching market trends in the coming sessions to determine whether the bulls will make a comeback or if the bears will extend their lead.
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