From Gold to Cocoa: What’s Hot and What’s Not in Ghana’s Markets
- GSE-CI Records Gains Amid Surge in Trading Activity
The Ghana Stock Exchange (GSE) kicked off 2025 with promising performance, signaling investor optimism and renewed market confidence. For the week ending January 17, the GSE-Composite Index (GSE-CI) climbed 3.15%, closing at 5,057.20 points, up from the previous week’s 4,902.87. This brings the year-to-date (YTD) return to an encouraging 3.45%, a substantial leap from last week’s 0.29% YTD return.
The Financial Stock Index (GSE-FSI) also saw a modest improvement, closing at 2,388.38 points with a weekly rise of 0.10%, pushing its YTD return to 0.32%. Market capitalization for the GSE expanded to GH₵113.67 billion, reflecting a growth of 1.73% from the previous week’s GH₵111.74 billion.
Trading Surge Brings Optimism
The equities market witnessed a significant uptick in trading volumes, with 4,308,065 shares changing hands—an astonishing 822.03% increase compared to the previous week’s 467,238 shares. However, trade turnover dipped slightly by 8.97% to GH₵13.81 million.
MTN Ghana (MTNGH) led the market in trading activity, exchanging 2,567,358 shares valued at GH₵6.71 million. Other notable contributors to the week’s trading volume included CAL Bank (1,434,820 shares) and Ecobank Transnational Incorporated (156,090 shares). SIC Insurance and Republic Bank Ghana rounded out the top five traded equities.
Market Leaders and Key Gainers
Among the week’s top performers, MTNGH stood out, closing at GH₵2.65 with a 6.00% YTD gain. NewGold ETF (GLD) posted an impressive weekly gain of 6.59%, closing at GH₵408.99. TOTAL Ghana followed with a 0.19-point rise to GH₵13.31, marking a 1.45% YTD increase. GOIL and GCB Bank also posted gains of 3.29% and 0.63%, respectively.
CAL Bank emerged as the week’s strongest percentage gainer, recording an 8.57% YTD return, demonstrating its resilience as investor interest grows.
Currency Market Overview
The local currency market saw mixed performance, with the Ghanaian cedi gaining marginally against the British pound (0.91%) and the euro (1.19%). However, the cedi weakened against the US dollar, Chinese yuan, and South African rand, with respective declines of 1.67%, 1.32%, and 2.61%. As of the week’s close, the cedi traded at GH₵14.95 to the US dollar and GH₵18.24 to the British pound.
Commodities Market Snapshot
The commodities market reflected global trends, with Brent crude oil climbing 8.12% YTD to close at $80.85 per barrel. Gold rose by 3.50% to $2,716.46 per ounce, signalling continued demand for the precious metal amid macroeconomic uncertainties. Conversely, cocoa prices dropped 7.59% to $10,061.34 per metric ton, highlighting volatility in agricultural commodities.
Outlook for 2025
NorvanReports can report that the robust start to the year on the GSE highlights investor confidence in Ghana’s economic recovery and growth potential. Analysts we have spoken to are optimistic about continued market gains, citing the new government’s fiscal policies and efforts to stabilize the macroeconomic environment. However, persistent currency pressures and global market uncertainties remain key challenges.
Meanwhile, SIC Brokerage’s recommended picks for long-term investments include MTNGH, TOTAL Ghana, and Benso Oil Palm Plantation (BOPP). SIC suggests a cautious approach for equities like UNIL while advising investors to consider buying opportunities in ACCESS, GCB Bank, and Societe Generale Ghana.
As trading volumes soar and equity prices rise, Ghana’s stock market is set to remain an attractive avenue for investment in 2025, particularly for those with an eye on long-term returns.
