Equities Market Sees Growth
– Creates stable financing options for SMEs
Story: Isaac AIDOO, Accra
GHANA’S equities market registered impressive growth throughout October, marking a milestone in the country’s financial landscape and creating promising implications for local businesses.
With the Ghana Stock Exchange (GSE) Composite Index closing at 4,385.94 points, the year-to-date (YTD) gain reached 40.12%.
Throughout the month, the market saw 10,147,298 shares traded, valued at GH₵115.9 million — a 510.37% increase in value compared to the same period last year, despite a 14.51% decline in trading volume.
As local companies increase capital investments through equity funding, the value growth highlights renewed confidence in Ghana’s economic outlook, positioning businesses for potential expansions and better access to capital.
Year-to-date, the GSE recorded 943,367,544 shares traded with a cumulative value of GH₵1.97 billion, reflecting a 122.23% rise in volume and a 239.55% increase in value compared to last year.
The surge in equity value provides local businesses with improved prospects for raising funds, supporting activities like capacity building and project expansions.
Market capitalization reached an all-time high of GH₵100.15 billion, reflecting strong investor optimism. With the GSE Financial Stock Index also climbing 17.66% YTD, financial sector stocks — particularly banking and finance — are witnessing increased market attention, underscoring the resilience of local banks in the face of global challenges.
For local businesses, this growth suggests more stable financing options and potentially more favourable loan terms, as banks are better capitalized to support small and medium-sized enterprises (SMEs).
Top gainers for the month included Ecobank Transnational Incorporated (ETI) with an 18% rise, GLD with an 11% increase, and Republic Bank Ghana (RBGH) at 10%. These positive results suggest that diverse local industries, from banking to energy, are benefitting from higher investor confidence, which could encourage more businesses to seek public listings as a means of raising growth capital.
The performance in the GSE’s Fixed Income Market was equally strong, with a traded volume of 16.43 billion — a 69.88% increase over the previous year. Treasury Bills led the market, accounting for 78.51% of total traded volume, followed by government bonds at 19.5%, and corporate bonds comprising 1.99%.
With Treasury Bills dominating, the preference for low-risk investment reflects a cautious optimism in the market. Government and corporate bonds provide alternative funding streams for companies, reducing reliance on traditional loans and encouraging diversified investment approaches.
For local businesses, this rise in market activity offers several benefits. Companies focused on expansion or modernization can explore bond issuance as a viable route for capital.
Additionally, with a 1% depreciation in MTN Ghana’s stock and a 7% decline in CAL Bank’s stock, businesses are reminded of the need to maintain steady growth amid market fluctuations.
The strong performance in the equity and fixed-income markets also suggests that investors, both foreign and domestic, are recognizing Ghana as a reliable destination for capital. Ultimately, this record-breaking performance in the GSE not only strengthens the foundation for capital markets but also bolsters local businesses’ growth potential in Ghana’s expanding economy.
