Trading on the Ghana Stock Exchange (GSE) ended the week on a positive note, with the GSE Composite Index (GSE-CI) posting a gain of 10.67 points to close at 4,733.62 on Friday, December 13, 2024.
This rise reflects a solid year-to-date performance of 51.22%, affirming continued investor confidence in Ghana’s equity market despite fluctuating trading volumes.
Key Performance Highlights
The GSE Financial Stock Index (GSE-FSI), which tracks financial sector equities, remained unchanged at 2,370.11 for the entire week. Meanwhile, the market capitalization grew slightly to GH₵ 109.16 billion on Friday, compared to GH₵ 109.03 billion recorded on Thursday.
Market activity varied significantly over the week. Tuesday witnessed the highest trading volume, reaching 3.77 million shares, though it had little impact on the indices. By contrast, Friday’s trading volume dropped sharply to just 52,259 shares, reflecting reduced investor participation.
Weekly Insights
- Steady Index Growth: The GSE-CI recorded a gain of 10.67 points, signaling sustained growth and confidence in the broader equity market.
- Financial Sector Stagnation: The GSE-FSI remained flat at 2,370.11, indicating limited investor interest in financial stocks.
- Trading Volume Decline: Despite a peak of 3.77 million shares on Tuesday, volumes dropped to 52,259 shares by Friday.
- Market Capitalization Growth: Market capitalization edged up to GH₵ 109.16 billion, reflecting incremental gains in market value.
Inflation and Exchange Rates
Ghana’s annual inflation rate rose for the third consecutive month, hitting 23.0% in November, up from 22.1% in October. This increase reflects the ongoing pressures of rising food and transport costs.
The Bank of Ghana’s exchange rates as of December 16, 2024, are as follows:
- US Dollar (USD): Buying at GH₵ 14.73, selling at GH₵ 14.75.
- British Pound (GBP): Buying at GH₵ 18.61, selling at GH₵ 18.63.
- Euro (EUR): Buying at GH₵ 15.47, selling at GH₵ 15.48.
Market Analysis
The sharp decline in trading volume towards the end of the week reflects a cautious stance by investors. This slowdown comes amidst rising inflation, fluctuations in Treasury bill subscriptions, and ongoing concerns about foreign exchange rates. While the GSE-CI maintains its steady upward trend, the flat performance of the GSE-FSI signals limited activity in the financial sector.
Market watchers anticipate steady performance in the GSE Composite Index, while trading volumes may improve as investors position themselves for year-end results.
