The Ghana Inventory Trade (GSE) reported important progress in its fastened earnings phase for August 2024, contrasting with a extra modest efficiency within the fairness market.
The GSE’s Fastened Earnings Market recorded a 236.02 p.c year-over-year (YoY) enhance in traded quantity for August – reaching 17.92 billion, knowledge from the market operator confirmed.
This determine represents a 29.2 p.c enhance from July 2024. The year-to-date (YtD) buying and selling quantity reached 103.24 billion, a 99.47 p.c enhance in comparison with the identical interval final yr.
This progress marks a return of investor exercise to the Ghana Fastened Earnings Market (GFIM) following a interval of lowered participation because of the home debt trade programme (DDEP).
The composition of traded devices in August was dominated by Treasury payments at 64.28 p.c, adopted by Authorities Bonds at 34.08 p.c and Company Bonds accounting for the remaining 1.64 p.c.
Analysts have stated that the restoration in fastened earnings buying and selling volumes suggests improved market liquidity and probably stabilising expectations concerning the nation’s fiscal administration.
In distinction to the fastened earnings market, the GSE fairness phase confirmed extra diverse outcomes. The GSE Composite Index (GSE-CI) – which measures the efficiency of listed shares – closed August at 4,359.85 factors, a marginal lower of two.98 p.c for the month, with a market capitalisation of GH¢92.1billion.
Nevertheless, YtD the GSE-CI has recorded a 39.28 p.c achieve. The GSE Monetary Inventory Index (GSE-FSI) fared barely higher than the broader market – growing by 0.77 p.c in August, with an 11.38 p.c year-to-date achieve.
This comes as banking trade belongings jumped to GH¢323.2billion in June this yr, in response to the Financial institution of Ghana’s Financial Coverage Report for the interval.
This progress, in response to the central financial institution, was on account of a surge in deposits and a weakening cedi.
Unsurprisingly, particular person inventory performances inside the fairness market diverse broadly. Prime gainers included Guinness with a 9.79 p.c enhance, Camelot with 9.09 p.c and Benson Oil with 8.7 p.c. Alternatively, notable declines have been noticed in MTN which fell by 5.98 p.c; and CAL, which dropped by 8.82 p.c.
Whereas the buying and selling quantity decreased by 75.94 p.c year-over-year to 22.3 million shares, the buying and selling worth elevated by 40.55 p.c to GH¢175.91million.
From starting of the yr till finish of August, buying and selling figures confirmed an 83.91 p.c enhance in quantity and a 170.94 p.c enhance in worth in comparison with the identical interval final yr.
The fastened earnings and fairness segments’ contrasting performances , analysts say, level to a market that’s more and more changing into extra environment friendly – with traders in search of the very best alternatives.