The Ghana Stock Exchange (GSE) ended 2024 on a high note, with market capitalization reaching GH₵111.36 billion in December, marking a 50.7% increase from GH₵73.89 billion in December 2023. The year began with a market capitalization of GH₵74.42 billion in January and experienced consistent growth throughout the year, achieving an average monthly growth rate of 3.53%.
By April, market capitalization had climbed to GH₵80.32 billion and continued its upward trajectory into the second half of the year, reaching GH₵93.35 billion in July. Despite a minor dip in August to GH₵92.04 billion, the market rebounded strongly in the last quarter, closing the year at its highest point. This steady increase highlights the resilience of listed companies and sustained investor confidence in Ghana’s equity market.
Indices Performance
The GSE Composite Index (GSE-CI) also exhibited robust growth, closing the year at 4,888.53 points, a substantial 56.17% rise from 3,130.23 points in December 2023. The GSE Financial Stock Index (GSE-FSI) recorded a 25.20% increase, ending the year at 2,380.79 points, up from 1,901.57 points in the previous year. These results demonstrate the growing valuations of listed firms and increased trading activity across various sectors.
Trading Activity and Volume
December 2024 was a particularly strong month for trading on the GSE. A total of 39.47 million shares were traded, representing a 68.17% increase compared to December 2023, while the value of trades surged by 137.08% to GH₵156.62 million. The number of transactions also rose significantly to 5,499, reflecting a 196.76% increase from December 2023.
For the full year, 992.19 million shares were traded, a 71.16% jump from the 579.68 million shares traded in 2023. The total value of trades more than doubled, reaching GH₵2.15 billion, a 163.15% increase from GH₵818.20 million the previous year. The total number of transactions grew by 75.45%, reaching 38,772, underscoring the growing activity and interest in the equities market.
Sectoral Performance
The ICT sector dominated trading in 2024, accounting for 92.80% of the total market volume, with 920.80 million shares traded, valued at GH₵1.52 billion. The finance sector followed, contributing 53.58 million shares and a total value of GH₵74.22 million. Meanwhile, the mining sector closed the year with a market capitalization of GH₵44.44 billion, buoyed by the performance of companies such as AngloGold Ashanti and Tullow Oil.
Notable Share Price Movements
MTN Ghana’s share price surged by 78.57% to GH₵2.50, while GCB Bank saw its share price increase by 87.35% to GH₵6.37. Conversely, CAL Bank experienced a decline of 27.08%, with its share price falling to GH₵0.35. These movements highlight the varying performances of individual stocks within the broader growth of the market.
Economic Indicators and Their Influence
Macroeconomic indicators played a key role in shaping market performance. Inflation rose slightly to 23.80% in December 2024, up from 23.20% in December 2023.
The exchange rate of the Ghanaian cedi to the US dollar stood at GH₵14.70 in December 2024, compared to GH₵11.88 a year earlier. The 91-day Treasury bill rate declined from 29.24% to 27.19%, reflecting changes in government borrowing dynamics.
Implications of the Market Performance
The 50.7% growth in market capitalization highlights the increasing valuations of listed companies, reflecting the strong financial performance of Ghanaian firms in 2024. This impressive growth is further emphasized by an average monthly increase of 3.53%, which signals consistent investor interest fueled by favorable trading conditions and robust corporate earnings.
Elevated trading volumes and values underscore heightened investor participation from both local and international markets, with pivotal contributions from key sectors such as ICT, finance, and mining. These sectors’ strong performance, alongside rising investor confidence, solidifies the Ghana Stock Exchange’s position as a vital pillar within Ghana’s financial ecosystem.
