Ghana’s financial markets demonstrated robust activity Friday as both equity and fixed income segments recorded significant trading volumes, with government bonds attracting over GH¢600 million in investor interest while stock indices posted solid gains.
The Ghana Stock Exchange Composite Index rose 72.82 points to 7,269.40, marking a 1.01% gain driven by strong performances in commodity-linked stocks and telecommunications. Meanwhile, the Ghana Fixed Income Market processed approximately GH¢602.75 million across 46 trades, highlighting sustained institutional demand for government debt securities.
NewGold ETF led equity market gains, surging GH¢45.33 to close at GH¢453.25 as investors maintained appetite for gold exposure amid global economic uncertainty. The exchange-traded fund, which tracks gold spot prices, has emerged as a dominant force on the Ghana Stock Exchange, regularly accounting for substantial portions of daily trading activity.
Total Petroleum Ghana posted the second-largest price gain, rising GH¢3.03 to GH¢35.00, while Fan Milk advanced GH¢0.21 to GH¢4.62. MTN Ghana, typically among the market’s most liquid stocks, gained GH¢0.04 to GH¢3.74 and led trading by value with GH¢1.80 million in transactions.
The fixed income market showed concentrated activity in medium-term government bonds, with the 2023-GC series dominating trading volumes. The February 2027 maturity bond recorded the highest activity at GH¢220.7 million, closing at a 16.11% yield, while longer-dated securities maintained yields above 16.4%.
Recent market data shows sustained investor appetite for government securities offering yields above 16%, with Ghana’s fixed income market recording over one billion cedis in trading activity on September 9. This trend continued Friday as new government bonds attracted GH¢547.98 million across 36 trades, representing the largest segment of fixed income activity.
Corporate bond activity remained limited, with only Ghana Cocoa Board’s August 2026 bond recording trades worth GH¢25.92 million at a closing price of GH¢97.53. The concentration in government securities reflects ongoing investor preference for sovereign debt amid Ghana’s economic recovery efforts.
Treasury bills saw modest activity with GH¢54.59 million in trading across six transactions, while the Bank of Ghana bills recorded a single large trade worth GH¢201 million. The repo market showed no activity in collateralized or GMRA repo trades.
Market data indicates growing investor appetite for debt securities, with the Ghana Fixed Income Market recording significant volume increases in recent months. The yield curve remained steep, with longer-dated bonds offering premiums above shorter maturities as investors demand compensation for duration risk.
The equity market’s performance masked underlying liquidity challenges, with many major stocks including AngloGold Ashanti, GCB Bank, and Ecobank Ghana recording zero trading activity. All companies listed on the Ghana Alternative Market remained inactive, highlighting ongoing participation issues in smaller-cap securities.
Total equity trading volume of 689,448 shares valued at GH¢3.92 million represented concentrated activity in select stocks, with the top five securities accounting for the vast majority of transactions. Market capitalization stood at GH¢149.04 billion following the day’s modest index gains.
The strong performance in both market segments reflects cautiously optimistic sentiment among institutional investors. Government bond yields have stabilized above 16% as investors balance concerns about fiscal sustainability with attractive real returns, while equity investors remain selective in their stock picking approach.
Friday’s trading activity demonstrates the continued appeal of Ghana’s financial markets to institutional investors, particularly in government securities where yields remain attractive relative to inflation expectations. The concentration of activity in selected equity securities and government bond maturities highlights the focused nature of current investment strategies.
Looking ahead, market participants will monitor whether the positive momentum can broaden beyond the handful of actively traded securities that currently drive most market activity in both equity and fixed income segments.
Source: newsghana.com.gh
