GSE Market Rally Continues as Investors Push Market Cap

The Ghana Stock Exchange (GSE) has started February on a strong note, with market capitalization reaching GHS 118 billion at the close of the first trading week.

Investor confidence remains high as market indices continue their upward trajectory, reflecting a bullish sentiment across listed equities.

In total, 16 GSE-listed equities participated in trading during the last trading session of the week, ending with three gainers and no losers. Ecobank Transnational Incorporated (ETI) led the gainers, recording an impressive 4.76% share price appreciation to close at GHS 0.44 per share. NewGold ETF followed with a 0.76% increase, while TotalEnergies Marketing Ghana gained 0.3%.

The overall performance of the market was highlighted by the benchmark GSE Composite Index (GSE-CI), which rose by 12.47 points (0.24%) to settle at 5,245.36 points.

This represents a one-week gain of 0.3%, a four-week gain of 6.99%, and an overall year-to-date gain of 7.3%. Similarly, the GSE Financial Stocks Index (GSE-FSI) climbed 0.69% to 2,497.19 points, marking a one-week gain of 0.88%, a four-week gain of 4.66%, and a year-to-date increase of 4.89%.

With a robust performance in key indices, the total market capitalization now stands at GHS 118 billion, a significant milestone reflecting sustained investor participation and growth in equity value.

Trading Activity

At the end of the final weekday of trading, a total of 142,036 shares were traded, corresponding to a market value of GHS 163,685.99. This trading activity, however, marked a 65% decline in volume and a 99% drop in turnover compared to the previous trading day (Thursday, February 6).

Despite the decline in turnover, CalBank recorded the highest trading volume, with 100,000 shares exchanged. Ecobank Transnational Incorporated (ETI) followed with 20,000 shares, while MTN Ghana and Fan Milk recorded 12,332 and 5,809 traded shares, respectively.

Although daily trading volumes fluctuated, the continued rise in market capitalization signals strong investor confidence in Ghana’s stock market. The absence of losing stocks on the final trading day further underscores the resilience of listed equities.

Meanwhile, the GSE’s recent market performance reflects a broader positive outlook in Ghana’s economic recovery and corporate sector growth. The stock market has recorded consistent gains in the past four weeks, demonstrating renewed investor interest in equity investments.

The bullish trend on the Ghana Stock Exchange has been largely driven by a combination of strong corporate earnings, attractive valuations, macroeconomic stability, and increased foreign participation. Companies listed on the GSE, particularly in the banking and financial sectors, have demonstrated resilience by posting solid earnings, which in turn boost investor confidence.

Additionally, the current price levels of some stocks have presented lucrative entry points, attracting both local and foreign investors. Recent policy measures by the Bank of Ghana, along with improved economic indicators, have created a favorable environment for stock market growth. Furthermore, the increased participation of foreign investors has significantly contributed to the overall rise in market capitalization, reflecting growing trust in Ghana’s economic prospects.

Outlook

In the short term, the performance of the Ghana Stock Exchange (GSE) is expected to remain positive, with investor interest likely to be sustained by several key factors. One of the primary drivers is the upcoming corporate earnings reports for the first quarter of 2025. These reports will provide deeper insights into the profitability of listed companies, potentially fueling additional market gains as investors react to strong financial performances.

Another significant factor is policy support from the government and regulatory bodies. Authorities continue to implement measures aimed at stabilizing the economy and enhancing capital market participation. These policies are expected to create a more favorable investment climate, attracting both domestic and foreign investors to the market.