GSE sees promising recovery signs in 2024

The Ghana Stock Exchange (GSE) is reporting promising signs of recovery in its markets for the year 2024, following a challenging period in 2023 marked by global turbulence and Ghana’s debt restructuring program.

Managing Director of the Exchange, Ms. Abena Amoah expressed optimism about the current market performance, highlighting significant improvements across various indicators compared to the previous year.

She noted that the composite index had surged by over 20 percent since the beginning of the year, signalling robust growth in market valuation.

“In terms of value traded on the equities market, we have witnessed an impressive increase of about 230 percent, reaching GH₵396 million year-to-date,” Ms. Amoah stated, underscoring the market’s renewed vitality.

Moreover, the debt market has also shown signs of recovery, with trading volumes up by more than 70 percent and a total market capitalization nearing GH₵400 billion. This recovery follows a period of subdued activity during the government’s debt restructuring phase in 2023.

“While we haven’t yet reached pre-2023 levels, investor confidence is steadily returning,” Ms. Amoah affirmed. She attributed this positive sentiment to the successful Memorandum of Understanding (MOU) between the Ghanaian government and international bilateral creditors, supported by favorable feedback from the International Monetary Fund (IMF). This development is expected to bolster further financial stability and confidence in the market.

Ms. Amoah also highlighted the diversification trend among institutional investors, particularly local pension funds, who are increasingly seeking alternative investment opportunities. Currently managing assets exceeding GH₵50 billion, these funds are gradually moving away from traditional government securities.

Looking ahead, the GSE remains cautiously optimistic about sustaining this upward trajectory, aiming to fully restore investor trust and surpass previous market performance levels in the coming months.

The Ghanaian financial markets, despite recent challenges, appear poised for a resilient recovery in 2024, driven by strategic reforms and renewed investor confidence.