Ghana’s equity market has demonstrated remarkable strength in 2024, with the Composite Index rising nearly 50% year-to-date through November, significantly outperforming the 29.71% gain recorded over the same period in 2023.
The financial sector also showed impressive growth, as the Financial Stock Index surged by 23.64%, reversing the previous year’s contraction of 2.71%. Total market capitalization climbed 46.66%, reaching GHC108.36 billion, a marked improvement over the 15.08% growth seen in November 2023.
Despite these positive developments, trading activity on the Ghana Stock Exchange (GSE) has sharply declined. Trading volume plummeted by 92.9%, falling from 131.71 million shares in November 2023 to just 9.35 million shares in the same month of 2024. In parallel, the value of traded shares dropped by 83.85%, from GHC172.37 billion to GHC27.84 billion.
These contrasting trends highlight a shifting dynamic in Ghana’s equity market, where substantial price appreciation has occurred even as trading volumes and value have sharply contracted. This divergence suggests a potential move towards a more passive market environment, with fewer transactions taking place despite rising share prices.
