Editorial: Sophistication among Ghanaian corporates in equity market

Despite the presence of foreign firms, local institutions are increasing equity participation.

Pension funds traded GH¢156.55 million, making up 14 percent of total market value. This is an increase from 10 percent in 2024.

Analysts link this rise to interest in large-cap stocks and exchange-traded funds. The NewGold ETF is particularly popular for institutional hedging strategies amid global economic volatility. Financial stocks and market leader MTN are also favored.

Local corporate investors were active, trading GH¢343.17 million on the buy side and GH¢62.48 million on the sell side. Their total volume of 52.5 million shares is nearly equal to that of foreign corporates.

This trend shows growing sophistication among Ghanaian companies in Treasury management. Equities are becoming part of short- to medium-term investment strategies.

Local individual investors contributed GH¢69.80 million in buy-side trades and GH¢23.18 million on the sell side, totaling 38.61 million shares. They represent about 15 percent of market volume but only around 11 percent of value.

This gap suggests local retail participation focuses on lower-priced equities or small-volume trades. Experts believe there is potential for growth here, especially with technology improving trade ease.

The ICT sector accounted for 65 percent of total market volume, mainly driven by MTN, the largest listed company by market capitalization. The financial sector followed with 30 percent of traded shares and 8.3 percent of value.