Ghana All-Share Index Tops African Performers in 2025
The Ghanaian All-Share Index gained approximately 80% in local currency terms in 2025, being the best-performing equity market in the region, Meristem Securities Limited said in its report.
The investment firm said investors’ confidence was rekindled following the country’s fiscal debt restructuring and improved macro fundamentals. In 2025, Ghana experienced rapid disinflation, currency appreciation, and monetary easing as government sought to drive economic growth.
“We observed strong buying interest in the financial services and energy sectors,” Meristem Securities Limited said in its report. In the same vein, investors in the Kenyan market reacted positively to the better-than-expected corporate earnings performance and dividend payments during the year.
Analysts noted that moderating fixed-income yields swayed capital rotation into equity assets. These, coupled with lower currency depreciation risk, given the relative stability of the Kenyan shilling during the year, spurred risk-on bias.
Resultantly, the market witnessed strong repricing across key names in FX-sensitive sectors like utilities, real estate, and power. The Nigerian Exchange All-Share Index returned +51 in the same period, its strongest performance in five years.
Meristem Securities noted an improved sentiment due to fiscal reforms in Egypt attracted decent domestic and foreign investors to the country’s equity market.
The EGX30 Index, which tracks the 30 most liquid and actively traded companies, gained +40.32%. Slowing inflationary pressure and a stronger currency also sustained sentiment, particularly among foreign investors.
“We recall that in previous years, stocks were bought primarily as a hedge against inflationary pressure and weakening currency. This meant that in USD terms, gains were muted despite rising local currency share prices, and this deterred foreign investors”.
In the southern part of the African region, South Africa’s equity market benefited from a combination of strong commodity prices and improving macroeconomic fundamentals, with the JALSH Index gaining +38.10% year to date in 2025.
The investment firm reported that the surge in gold prices was a significant driver of the market performance, as major listed gold producers witnessed substantial price appreciation.
The mining sector carries substantial weight in South African equity indices, making overall market performance particularly sensitive to commodity price movements. The sector’s strong performance helped offset lags in other sectoral indices, providing crucial support to the broader market.
Also, the South African Reserve Bank’s (SARB) dovish stance (maintaining interest rate at its lowest level since November 2022) provided support for listed corporates by reducing borrowing costs and potentially stimulating economic activity.
For foreign investors, the duo of strong equity returns, and potential currency gains were compelling, particularly during periods of dollar weakness, further driving capital flows into the South African market.
“We expect these factors to spur further market gains in 2026, particularly if global macro conditions remain supportive for precious metals, and specific country specific challenges like electricity supply constraints affecting mining operations, and infrastructure gaps are resolved”, Meristem said.
Market analysts stated that elevated gold prices would portend improved profitability for producers, potentially leading to increased dividends, capital investment, and balance sheet strengthening.
“Our investment consideration favours rotation into key names with strong operational track records, healthy balance sheets, and significant resource bases like Gold Fields Ltd (JSE: GFI), AngloGold Ashanti Plc (JSE: ANG), and Sibanye Stillwater Ltd (JSE: SSW).
“These companies represent varying levels of operational diversification, cost structures, and growth profiles, allowing investors to tailor their exposure based on specific investment objectives and risk tolerance”, Meristem Securities Limited said. CBN Spends $7.5 billion to Defend Nigerian Naira in 2025
