The Ghana Stock Exchange (GSE) continued its upward trajectory yesterday 4th July 2024 after staying flat the previous day, with the benchmark GSE Composite Index (GSE-CI) advancing 12.18 points to close at 3,895.42.
This push extended the index’s year-to-date return to an impressive 24.44%, underlining the robust performance of Ghanaian equities in the year.
While the broader market surged, the GSE Financial Stocks Index held steady at 2,108.22 points, maintaining its year-to-date return at 10.87%.
The day’s gains were led by significant price movements in key stocks. ALLGH, MTNGH, and GLD saw their share prices climb to GHS5.39, GHS1.86, and GHS352.90 respectively. These increases contributed to a rise in the total market capitalization, which reached GHS86.22 billion.
Trading activity showed a marked improvement, with total turnover surging 19.44% from the previous session to GHS13,753,453.67 ($1.2 million). Volume also saw a substantial increase, with 2,264,612 shares changing hands across ten different equities.
EGH dominated the trading floor, accounting for the lion’s share of volume with 2,237,792 shares traded. Market observers noted outstanding offers for several stocks, including FML at GHS3.68, GCB at GHS5.50, and TOTAL at GHS10.50, indicating continued investor interest across various sectors.
The GSE’s strong performance comes against the backdrop of Ghana’s efforts to stabilize its economy and the local currency. The exchange’s rally suggests growing confidence in Ghana’s corporate sector and broader economic prospects.
However, some analysts who spoke to NorvanReports caution that inflationary pressures and global economic uncertainties could still pose challenges to the market’s continued ascent. Some of the reasons are ongoing elections across the globe and the continued Russia-Ukraine and Isreal wars could be factors
As Ghana positions itself as a key investment destination in West Africa, the sustained growth of its stock market serves as a barometer for both domestic economic health and international investor sentiment. Market participants will be watching closely to see if this upward trend can maintain its momentum in the coming weeks.