Trading on the Ghana Stock Exchange (GSE) in the first quarter of 2025 witnessed a remarkable divergence in activity — volumes plummeted, yet the total value of traded equities soared.
This shift, which marks a turning point in investor behavior, suggests growing sophistication in the market as participants favour stocks with strong fundamentals over speculative, high-volume trades.
According to the GSE’s Equities Market Report for March 2025, total share volume traded between January and March stood at 61.3 million shares. This figure represents a staggering 75.87 percent decline from the 254.2 million shares traded in the same quarter of 2024. Despite this dramatic drop in volume, the market’s total value traded rose by 29.28 percent year-on-year, reaching GH¢473.2 million.
This striking contrast in trading patterns reflects a broader shift in investor priorities. Analysts point to a growing appetite for higher-priced, quality stocks — especially those with resilient earnings and promising growth prospects — as the key driver behind this phenomenon. Sectors such as financial services, telecommunications, energy, and consumer goods dominated trade activity in terms of value, while companies with stronger fundamentals led price gains.
One of the most notable developments was the performance of Gold Exchange Traded Funds (ETFs), which topped the chart in terms of value traded. Approximately GH¢139 million worth of Gold ETFs changed hands in the quarter, accounting for nearly 9 percent of the total value traded. MTN Ghana followed closely with GH¢46.9 million, while Access Bank ranked third, contributing about 4.8 percent to the overall value despite relatively lower trading volumes.
The Most Capitalised Stock On The Exchange
MTN Ghana, the most capitalised stock on the exchange, maintained its status as a bellwether equity. It led the market in volume traded — 14.8 million shares — and was second in value. The telecom giant’s appeal remains strong, underpinned by consistent dividend payouts and ongoing expansion into fintech, which has attracted both retail and institutional investors.
Meanwhile, the financial sector posted impressive gains, led by CAL Bank and Ecobank Transnational Incorporated (ETI). Both banks recorded triple-digit share price increases in the quarter, driven by strong 2024 earnings and positive guidance for 2025. Access Bank and SIC Insurance also posted significant double-digit gains. As a result, the GSE Financial Stock Index (GSE-FSI) climbed by 28.5 percent, slightly outpacing the broader GSE Composite Index (GSE-CI), which rose by 27.19 percent during the same period.
In the energy sector, TotalEnergies emerged as a strong performer with a share price appreciation of 83.54 percent, adding significant weight to overall market value despite limited volumes. Likewise, the consumer goods segment saw renewed investor interest in companies like Fan Milk and Guinness Ghana. Both firms benefited from internal operational restructuring and export growth strategies that bolstered investor confidence.
Total Shares Traded
March 2025 alone echoed the quarterly trend. Total shares traded during the month dropped sharply to 22 million, an 89.48 percent fall compared to 208.7 million shares traded in March 2024. Yet, value traded for the month stood at GH¢201.9 million — a 35.59 percent decline year-on-year — still reflective of the market’s preference for fewer but more valuable trades.
The average daily trading volume for Q1 2025 was 1.02 million shares, down from 4.09 million in Q1 2024. In contrast, average daily value traded climbed to GH¢7.89 million, underscoring the premium now placed on high-value equities.
Overall market capitalisation reached GH¢136.99 billion by the end of March, representing a 23.03 percent increase from the start of the year. Domestic market capitalisation also grew by 26.98 percent to GH¢78.57 billion, fuelled largely by gains in large-cap domestic stocks.
Another factor influencing this shift toward equities is government policy in the bond market. With government aggressively managing Treasury auction rates — even rejecting some bids outright — many investors are redirecting capital from fixed-income securities into the equity market. This move is further aided by improved access to financial information and growing investor education, which is deepening investor focus on valuation rather than speculation.
While some market watchers have expressed concern about falling trading volumes and their impact on liquidity, many argue that the rising value traded signals a healthier market where capital is being allocated more efficiently. In this light, the GSE’s Q1 2025 performance can be seen as a positive indicator of market maturity — where investor decisions are increasingly driven by earnings potential, resilience, and long-term growth prospects.
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