GSE Trading Value Reaches GH¢2 Billion by November 2024

The Ghana Stock Exchange (GSE) has experienced remarkable growth in 2024, with the total value of shares traded from the beginning of the year to the end of November reaching GH¢1.996 billion, or approximately GH¢2 billion. This marks an extraordinary 165.44% increase from the GH¢752 million recorded during the same period in 2023. Alongside the rise in trading value, the volume of shares traded also saw a notable increase of 71.29%, reaching a total of 952.72 million shares. As a result, the market capitalization surged to GH¢108.4 billion, compared to GH¢74.2 billion at the end of November 2023.

This impressive growth is attributed to a combination of factors, including a slowdown in the debt market and the revival of financial sector stocks, which have made the market more attractive to investors. These developments have also led to increased liquidity on the market, further driving its upward trajectory. In particular, the GSE Composite Index (GSE-CI) maintained its positive momentum in November, closing at 4,694.37 points. This was a 49.97% gain compared to the same period last year, when the index had grown by 29.71%. Similarly, the GSE Financial Stock Index showed substantial progress, gaining 113.71 points, a 23.64% increase for the period.

Despite this overall growth, November’s trading activity saw a significant decline compared to the same month in 2023. The market traded just 9.35 million shares worth GH¢27.84 million, which represented a dramatic 92.9% drop in volume and an 83.85% decrease in value. Although these figures suggest a temporary setback, the year-to-date performance remains strong, indicating that the market is still on a positive trajectory.

Some of the top-performing stocks in November included Ecobank Transnational Incorporated Plc, which saw a substantial 45% increase in its share price, and Cal Bank Plc, which gained 31%. Other notable gainers were Camelot Ghana Plc (17%), Access Bank Ghana Plc (10%), MTN Ghana (10%), and Ecobank Ghana Plc (7%). Additionally, Unilever Ghana Plc (3%), GCB Bank Plc (2%), Ghana Oil Company Plc (1%), and TotalEnergies Marketing Ghana Plc (1%) all posted positive price movements during the month.

However, not all stocks experienced gains in November. Enterprise Group Plc saw a slight decline of 1%, and the exchange-traded fund (ETF) NewGold registered a significant 12% drop. Despite these few setbacks, the overall performance of the market has been impressive throughout the year.

As 2024 draws to a close, analysts and investors are closely watching the GSE for any signs of sustained growth. While November’s trading volume and value experienced a temporary dip, the year-end results remain strong, and many experts predict that the momentum will continue into 2025. The rally in equities is expected to be supported by improving market conditions and a steady recovery in corporate earnings. Analysts forecast that the GSE Composite Index (GSE-CI) could reach 6,850 points by the end of 2025, reflecting an annual increase of between 40% and 50%. This growth is projected to be broad-based, with significant contributions from key sectors such as banking, telecommunications, and fast-moving consumer goods (FMCG).

The strong performance of the GSE in 2024 reflects the growing importance of the exchange as a platform for investment and economic growth in Ghana. With an increasingly favorable market environment, the GSE is expected to continue playing a central role in the country’s financial ecosystem in the years ahead. As both local and international investors look to capitalize on Ghana’s economic recovery, the stock market is poised to remain a critical component of the nation’s economic development strategy.