Ghana’s equity market posted its strongest monthly gain in over a year, with the benchmark GSE Composite Index jumping 15.78% in February 2025, driven by a rally in banking and energy stocks.
The Financial Stocks Index outpaced broader markets, climbing 18.21%, while total traded value skyrocketed 826% year-on-year to GH¢162.6 million. Ecobank Transnational Inc. (ETI) led gains, surging 80%, followed by Cal Bank PLC (CAL) (+43.9%) and SIC Insurance (+37.1%), as investors bet on sectoral reforms and improved earnings.
Fixed income markets mirrored the bullish trend, with monthly volumes up 67% to GH¢22.11 billion, dominated by Treasury Bills (68% share). Corporate bonds lagged at 3.1%, underscoring lingering risk aversion. “The equity rally reflects renewed confidence in Ghana’s macroeconomic stabilization,” said Accra-based analyst Kwame Ofori. “But the debt market split shows investors still prefer sovereign guarantees amid high inflation.”
Corporate shakeups dominated headlines: Republic Bank Ghana appointed Jonathan Prince Cann as board chair, while SIC Insurance named James Agyenim-Boateng acting CEO. The Ghana Stock Exchange saw leadership changes, with Pearl Nkrumah replacing outgoing council chair John Kofi Adomakoh. Market capitalization swelled 9% month-on-month to GH¢127.8 billion, buoyed by banking heavyweights GCB (+1.56%) and Standard Chartered Bank Ghana (+8.74%).
February’s rally contrasted with a 13.4% drop in year-to-date trading volume, though value surged 416%—a sign of pricier blue-chip activity. Total Petroleum Ghana (TOTAL) rose 12%, while telecom giant MTN Ghana (MTNGH) gained 5.8%. The sole laggard, Ecobank Ghana (EGH), fell 5.3% on profit-taking.
Upcoming events, including the March 11 “Ring the Bell for Gender Equality,” aim to sustain momentum. But with inflation at 23.8% and the 2025 budget pending, analysts warn gains remain fragile. “This isn’t a structural turnaround yet,” cautioned Databank’s Esi Coleman. “Markets need concrete fiscal discipline and lower borrowing costs to hold these levels.”
