Ghana’s financial markets showed a mix of quiet confidence and rising caution in August, as stock prices went up even though fewer shares were traded, while the bond market saw a flood of new activity. This is according to the Ghana Stock Exchange’s Monthly Market Summary for August.
Stocks See Lower Trading but Higher Prices
Trading on the stock market slowed down sharply in August. Only about 45.9 million shares were bought and sold, worth around GHS 203.63 million. This was a big drop from July, when 358.2 million shares valued at GHS 1.73 billion changed hands.
But despite the slowdown, prices rose. The GSE Composite Index, which tracks the overall performance of the market, climbed 4.84% to end the month at 7,330.37 points. The total value of all listed companies also went up from GHS 146.1 billion in July to GHS 149.6 billion in August.
This shows that even though fewer people were trading, those who stayed in the market were willing to pay higher prices for shares they believed in. Since January, the index has now gained almost 50%, and investors have traded GHS 2.87 billion worth of shares this year, more than double the GHS 1.29 billion traded during the same period last year. The total value of listed companies is also more than 60% higher than a year ago.
Some Companies Shine, Others Struggle
Several companies saw strong gains during the month. Cocoa Processing Company’s share price jumped 50%, while Intravenous Infusions rose 25%. Trust Bank Gambia and Clydestone Ghana both climbed 10%. Mobile network giant Scancom gained 9.01%, NewGold rose 8.16%, and oil marketer GOIL went up 7.94%. GCB Bank and Republic Bank Ghana also posted gains of 5.15% and 4.76% respectively, while Ecobank Ghana added 2.73%.
However, not every company had a good month. Ecobank Transnational dropped 6.10%, Cal Bank slipped 5.56%, while Unilever Ghana and Access Bank Ghana saw small declines of less than half a percent each. This shows that investors are being careful, backing companies they trust and steering clear of those they see as risky.
Bond Market Comes Alive
While the stock market was quiet, the bond market became very active. The Ghana Fixed Income Market (GFIM) recorded a total traded volume of 23.92 billion in August, up 11.67% from 21.42 billion in July. In money terms, the value of these trades was about GHS 21.32 billion, far higher than the GHS 14.18 billion recorded in August last year.
Most of the activity was in government securities. Treasury bills made up 46% of all trades, while government notes and bonds accounted for 37%. Bank of Ghana bills made up 13%, and corporate bonds made up the remaining 4%.
So far this year, a total of 152.07 billion worth of bonds have been traded on the market, a 47% jump from the 103.24 billion traded in the same period last year. The total value of all trades has also gone up by 52% to GHS 128.05 billion. This shows that more investors are putting their money into safer government-backed investments.
Overall, August showed a market trying to balance growth with caution. Stock prices are rising, but on lower volumes, meaning investors are being more selective. At the same time, the bond market is buzzing with activity, as others look for safer and more predictable returns.
