The Ghana Stock Exchange (GSE) wrapped up its 6897th trading session on January 31, 2025, with slight upticks in key indices, reflecting cautious optimism among investors. The GSE Composite Index (GSE-CI) edged up by 1.74 points to close at 5,229.44, while the Financial Stocks Index (GSE-FSI) rose by 2.45 points to 2,475.34. Year-to-date, both indices saw marginal growth of 0.07% and 0.04%, respectively, signaling steady but subdued market activity.
Trading Activity
Total shares traded for the week reached 168,483, with a combined value of GH¢181,380.93. Tuesday’s session stood out, recording the highest volume at 2.3 million shares worth GH¢1.3 million, driven by renewed interest in mid-cap equities. By contrast, Friday’s session saw lighter activity, with 168,483 shares traded, dominated by Cal Bank PLC (CAL), which accounted for 89,532 shares and a 0.41% price increase to GH¢0.41.
Performers
– Enterprise Group Ltd. (EGL) emerged as a standout, trading 22,659 shares at GH¢2.05, contributing GH¢46,450.95 to the day’s value.
– Ghana Oil Company Ltd. (GOIL) saw robust demand, with 49,659 shares traded at GH¢1.59, totaling GH¢78,957.81.
– Scancom PLC (MTNGH), parent company of MTN Ghana, traded 6,096 shares at GH¢2.75, reflecting sustained investor confidence in the telecom giant.
– Atlantic Lithium Ltd. (ALLGH) recorded a notable GH¢2,307.24 in value from 377 shares traded at GH¢6.12.
However, several blue-chip stocks, including Access Bank Ghana, Agricultural Development Bank, and Unilever Ghana, registered zero trading activity, underscoring lingering risk aversion.
Ghana Alternative Market (GAX) Stagnates
The GAX, designed to support small and medium enterprises, remained dormant. SAMBA Foods Ltd., Meridian Marshalls Holding Company, and others listed on the GAX saw no shares traded, highlighting ongoing challenges in attracting liquidity to this segment.
Financial Health Insights
A review of listed companies’ profiles revealed mixed fundamentals:
– GCB Bank PLC maintained a market capitalization of GH¢1.7 billion, with a price-to-earnings (P/E) ratio of 2.04, signaling undervaluation relative to earnings.
– MTN Ghana (MTNGH) dominated with a GH¢36.4 billion market cap, though its P/E ratio of 7.25 suggested moderate investor confidence.
– Struggling firms like Aluworks PLC (ALW) and Cocoa Processing Co. (CPC) reported negative earnings per share (EPS), reflecting operational headwinds.
Dividend Drought Persists
No dividends were declared across listed equities, continuing a trend observed in recent quarters. Analysts attribute this to companies prioritizing liquidity preservation amid macroeconomic uncertainties.
Market Sentiment and Outlook
While the uptick in indices suggests cautious optimism, low trading volumes and stagnant GAX activity point to broader investor hesitancy. The absence of dividend payouts and mixed corporate earnings further cloud the short-term outlook.
As Ghana’s economic reforms under its IMF program progress, market watchers anticipate renewed interest in sectors like banking and energy. For now, the GSE remains a tale of selective optimism, with investors keenly eyeing fiscal stability and corporate earnings recovery.
