Equities Extend Rally as GSE Index Closes at Fresh High
The equities market continued its upward trajectory last week, buoyed by gains in key consumer and banking stocks. The benchmark GSE Composite Index (GSE-CI) rose 0.08% to close at 8,495.93 points, extending its year-to-date advance to 73.79%, one of the strongest performances among African bourses this year.
The GSE Financial Stocks Index (GSE-FSI) climbed 2.9% over the week to 4,063.62 points, driven by advances in SIC Insurance (+13.2%), Ecobank Transnational (+8.7%), and CAL Bank (+7.6%). Market capitalisation expanded to GH¢168.08 billion, despite a 63% slump in trading volumes to 6.66 million shares, valued at GH¢25.79 million.
Fan Milk Limited (FML) was the standout performer, rising 1.51% to GH¢7.50 and accounting for more than a third of total market turnover. Guinness Ghana Breweries (GGBL) and Standard Chartered Bank Ghana (SCB) also posted notable gains, while MTN Ghana (MTNGH) and New Gold (GLD) ended lower, shedding 0.10 pesewas and GH¢19.11, respectively.
On a regional scale, GSE remained Africa’s best-performing market year-to-date, outpacing Nigeria’s 44.7% and Kenya’s 42.9% gains. The Botswana and South African indices posted modest increases of 5.6% and 31.7%, respectively.
Currency and commodities market
On the currency front, the cedi strengthened sharply against major trading currencies, appreciating to GH¢10.70 per dollar from GH¢12.17 the previous week. The local unit also firmed against the pound and euro, reflecting easing domestic demand for foreign exchange.
In commodities, gold surged 5.3% week-on-week to US$4,201.79 per ounce, extending its year-to-date rise to 60%, as investors sought refuge amid global market uncertainty. Brent crude slipped to US$60.99 per barrel, down 18.4% year-to-date, while cocoa prices eased slightly to US$5,848 per metric tonne, though still trading near multi-decade highs after last quarter’s weather-induced rally.
Market outlook
Analysts at SIC Brokerage Limited maintained a positive medium-term view on the Ghana Stock Exchange, citing strong corporate earnings, improved macroeconomic sentiment, and persistent investor rotation into equities as inflation moderates.
The brokerage reiterated long-term buy ratings on MTN Ghana, Benso Oil Palm Plantation (BOPP), TotalEnergies Marketing Ghana, and Republic Bank Ghana (RBGH), while highlighting SIC Insurance, GCB Bank, Societe Generale Ghana (SOGEGH), and Fan Milk as attractive near-term picks.
