Ghana’s Equity Market Surges 50% Despite Falling Volumes

AFRICAN STOCKS AND FINANCEDecember 18, 2024 at 11:09 AM UTC

TLDR

Ghana’s equity market soared in 2024, with the Composite Index rising nearly 50% year-to-date through November
Market capitalization surged by 46.66% to GHc108.36 billion, far outpacing the 15.08% growth recorded in November 2023
However, trading volumes dropped 92.9%, from 131.71 million shares in November 2023 to 9.35 million

Ghana’s equity market soared in 2024, with the Composite Index rising nearly 50% year-to-date through November, compared to a 29.71% gain in the same period last year. The Financial Stock Index also rebounded sharply, gaining 23.64% after contracting 2.71% in 2023.

Market capitalization surged by 46.66% to GHc108.36 billion, far outpacing the 15.08% growth recorded in November 2023.

However, trading activity declined significantly. Volumes dropped 92.9%, from 131.71 million shares in November 2023 to 9.35 million. Traded value also fell by 83.85%, from GHc172.37 billion to GHc27.84 billion.

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Points clés à retenir

Ghana’s equity market reflects contrasting trends: robust price growth alongside steep declines in trading volumes and values. The reduced trading activity could signal a more selective market dynamic, with investors holding on to stocks amid strong price appreciation. The gains in market capitalization and the Financial Stock Index highlight growing investor confidence in Ghana's economic recovery, even as lower liquidity raises questions about the depth of market participation. The performance underscores Ghana’s potential as an investment destination, but sustaining growth may require addressing the underlying factors behind declining trading activity.

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