Ghana’s equity market continued its impressive run in the final week of July, driven by strong investor interest in heavyweight stocks, particularly MTN Ghana.
The benchmark GSE Composite Index (GSE-CI) surged 4.82 per cent to close at 6,994.45 points, its highest level this year, bringing the year-to-date (YTD) return to a robust 43.08 per cent.
The market’s bullish momentum was fuelled by renewed investor confidence in the banking and insurance sectors, with the GSE Financial Stock Index (GSE-FSI) rising 0.46 per cent to 3,428.15 points.
MTN Ghana, the telecom giant, was the star of the show, rallying 9.23 per cent to GH¢3.55 and accounting for the lion’s share of market activity.
This surge in MTN’s stock price is a reflection of the company’s strong financials and its dominant position in the Ghanaian telecom market.
Performance
The market’s overall performance was equally impressive, with the GSE Composite Index (GSE-CI) surging 4.82 per cent to close at 6,994.45 points, its highest level this year. This brings the year-to-date (YTD) return to a robust 43.08 per cent, outpacing other African markets.
The financial sector gauge, the GSE Financial Stock Index (GSE-FSI), also ticked higher, rising 0.46 per cent to 3,428.15 points, underscoring renewed investor confidence in the banking and insurance counters.
The market’s expansion was fuelled by heightened trading activity, with total volume traded increasing 71.15 per cent to 60.83 million shares and turnover jumping 96.66 per cent to GH¢275.42 million. This surge in trading activity is a sign of the market’s growing liquidity and investor appetite for Ghanaian stocks.
Market outlook
With a 43.08 per cent YTD gain, the stock market is likely to continue attracting investor interest, driven by the country’s economic growth prospects and the performance of its listed companies. However, investors should remain vigilant and monitor market trends to make informed investment decisions.
As the Ghanaian stock market continues to outperform its peers on the continent, it’s clear that the country’s economic fundamentals are strong and its financial markets are increasingly attractive to investors.
With its 43.08 per cent YTD gain, Ghana’s stock market is a compelling destination for investors seeking to capitalise on the country’s growth potential.
Source: Business News ( Graphic online)
