Ghana Stock Exchange Tops Africa in 2024 Performance with 56.17% Gain

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Ghana’s investment market
stock exchange

The Ghana Stock Exchange (GSE) has emerged as the best-performing stock market in Africa for 2024, posting a remarkable 56.17% gain.

This surge, driven by a lack of attractive debt investment options, has made equities a more appealing choice for investors.

The GSE’s composite index climbed from 3,130.23 to 4,888.53, marking its strongest performance in a decade, and analysts predict the rally will extend into 2025, buoyed by strong corporate earnings and improved investor sentiment.

John Nani, an analyst at Fincap Securities, highlighted that growing confidence in the equities market, particularly MTN Ghana’s continued leadership, has played a crucial role in this growth. MTN Ghana’s consistent dividend payouts and increasing profitability have made it a top choice for investors.

The rally comes as other investment alternatives, like the Treasury bill market, have faced challenges, with significant undersubscriptions and a depreciation of the cedi. The GSE’s equity market has proven a more attractive option, offering higher returns compared to Treasury bills, which only yielded around 28% to 30% in 2024.

The GSE also saw a notable rebound in its Financial Index, which rose by 25.2%, following a tough year in 2023 marked by the restructuring of domestic bonds. The broader market’s performance was supported by growth across various sectors, including agriculture, ICT, finance, and distribution.

MTN Ghana’s dominance remains unparalleled, accounting for about 93% of total trading volumes in 2024. The company’s strong fundamentals and consistent dividend policies continue to make it a go-to stock for investors. Other significant performers included Unilever, which gained 140.44%, and Ecobank Transnational, which rose by 106.67%. MTN Ghana itself saw an impressive 78.57% increase in its share price, closing the year at GH¢2.50.

The positive momentum is not just confined to Ghana. Other African markets also saw strong performances, with the Malawi Stock Exchange and Zambia’s Lusaka Securities Exchange posting gains of 55.06% and 42.60%, respectively. However, Ghana led the pack, driven by investor preference for equities in light of limited options in the debt market.

Analysts forecast that the GSE-CI could surpass the 5,000-point mark in 2025, with a projected gain of up to 45% for the year. This continued growth will depend largely on the government’s economic policies, particularly in areas like taxation, infrastructure development, and fiscal discipline, which could further boost investor confidence.

As the GSE continues its stellar performance, the market’s appeal has grown, with 992 million shares traded in 2024—a 71% increase from the previous year. Turnover also surged by 163%, reaching GH¢2.15 billion. This growth in trading volume and market turnover further underscores the increasing attractiveness of equities to investors seeking higher returns.

With a bullish outlook for 2025, the GSE is set to remain a key player in Africa’s investment landscape, driven by the strong fundamentals of leading companies like MTN Ghana and supported by favorable market conditions and government policies.

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