Ghana’s Stock Market Shines While the Cedi Stumbles Last Week
- Ghana’s Stock Market Ends Week on a Positive Note
Ghana’s stock market closed the week on a high as the Ghana Stock Exchange Composite Index (GSE-CI) registered a modest 0.38% gain, ending at 5,076.55 points. The financial stocks index (GSE-FSI) outperformed with a 1.07% rise, closing at 2,413.90 points.
This performance further cements the GSE’s reputation as one of Africa’s best-performing markets in recent years, with a year-to-date (YTD) return of 3.85%.
The week’s trading activity surged, with the volume of shares traded increasing by 75.08% to 7.54 million, while the value of trades soared 452.77% to GHS 76.3 million.
Market capitalization also saw a boost, rising to GHS 114.4 billion, reflecting growing investor confidence despite ongoing macroeconomic challenges.
Equity Market Standouts
Key stocks led the week’s gains, with Gold Fields Ghana (GLD) recording an impressive 12.11% rise to close at GHS 421.10, marking a YTD return of 7.84%. GOIL continued its steady climb, gaining 0.02% to end the week at GHS 1.59, with a 4.61% YTD return.
TOTAL Petroleum also contributed to the upward trend, adding 0.06% to close at GHS 13.37, reflecting a 1.91% gain for the year.
Interestingly, no stock recorded a price decline this week, underlining bullish sentiment across the exchange.
CAL Bank was the most actively traded stock, with 5.8 million shares changing hands, valued at GHS 2.2 million. GLD topped the value traded leaderboard with transactions worth GHS 69.8 million.
Our Stock Picks Shine
One of our brokers on the market, SIC Brokerage Ltd (SBL) has maintained its bullish outlook for certain stocks, including MTN Ghana, Benso Oil Palm Plantation (BOPP), and TOTAL, highlighting their robust fundamentals and growth potential.
The brokerage also recommended short-term buys for ACCESS Bank, GCB Bank, and Societe Generale Ghana (SOGEGH), while advising a hold position on Unilever Ghana (UNIL).
“These equities have consistently demonstrated resilience and are well-positioned for both short-term gains and long-term value creation,” noted SBL in its weekly analysis sent to NorvanReports
Commodities and Currency Volatility
The commodities market offered some positive news, with gold prices rising 5.71% to $2,774.60 per ounce, buoyed by global uncertainties. Cocoa prices also rose 3.19% to $11,235.17 per metric tonne, providing a crucial boost for Ghana’s export revenues. Brent crude oil closed at $78.20 per barrel, up 4.57% for the week, signaling improved prospects for the energy sector.
However, the Ghanaian cedi faced significant pressure, depreciating against major currencies. The cedi weakened by 2.65% against the US dollar to GHS 15.10 and by 2.38% against the British pound to GHS 18.85. This trend poses risks for import-heavy businesses and could dampen investor sentiment if it persists.
Looking Ahead
Market analysts remain cautiously optimistic about the GSE’s prospects. With strong YTD performance and increasing investor interest, the financial and energy sectors are expected to remain key drivers of growth. Stocks like MTNGH, GCB, and GLD continue to attract attention for their growth potential.
“The depreciation of the cedi is a concern, but robust performance in equities and commodities provides a much-needed buffer for the economy,” said an analyst at SIC Brokerage.
Policy interventions to stabilize the currency and attract foreign investment will be essential as Ghana navigates its macroeconomic challenges.
For now, the GSE stands out as a bright spot in an otherwise turbulent economic landscape, offering a glimmer of hope for investors seeking value in West Africa.
