The Ghana Stock Exchange (GSE) trades flat as market capitalization increased while trading activity dips at the end of last trading session on Friday, September 11, 2021.
According to the market report, all the nine major stocks but one [Fan Milk Ghana Limited] that participated in Friday’s market closed the trading session without a gain or a lost. Fan Milk Ghana Limited closed with a gain. This means that the stock prices of these equities neither increased nor decreased.
Moreover, regarding the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) inched up 0.67 (0.02%) points to close at 2,800.36 points, representing a 1-week gain of 1.7%, a 4-week gain of 2.04%. The benchmark GSE-Composite index is based on the volume weighted average closing price of all listed stocks. However, Friday’s trading session had an overall year-to-date gain of 44.23%% to investors.
GSE Financial Index Maintained it’s Value
In addition, the Ghana Stock Exchange Financial Stocks Index (GSE-FSI) which constitutes only listed stocks from the financial sector including banking and insurance sector stocks, maintained its value at 1,959.18 points.
This means that, compared to the previous trading session on Thursday, September 10, 2021, the GSE-FI did not gain or lose any point. Meanwhile, this represents a 1-week gain of 1.52%, a 4-week gain of 2.6%, and a year-to-date gain of 9.9%.
Furthermore, the market capitalization which captures the total market value of all outstanding shares hence determining the worth of various companies listed on the local bourse rose remarkably to settle at GH¢63.4 billion compared to the previous trading session.
Meanwhile, analysts hold that the market cap is simple and effective tool for risk assessment and as such can be helpful to investors in determining which stocks to purchase and ways to diversify various portfolio with companies of different size.
Additionally, trading activity declined considerably for the second-time running as a total of 22,022 shares changed hands, corresponding to a market value of GHc 88,947.63. Compared with the previous GSE trading day (Thursday, September 10), Friday’s data showed 13% decline in volume but 145% improvement in turnover.
Trade by Volume
Despite the decline in stock market performance, the banking sector and Information and Communications Technology (ICT) stocks led the market with Ecobank Transnational recording the highest volume of shares traded taking over from MTN Ghana which led the market in the previous trading session.
Moreover, Ecobank Transnational recorded the highest volume of 5,333 traded shares, followed by Fan Milk (5,000), MTN Ghana (4,390) and Standard Chartered Bank (3,143).
Meanwhile, Fan Milk Limited closed its last trading day (Friday, September 10, 2021) at GHc1.76 per share on the Ghana Stock Exchange (GSE), recording a 3.5% gain over its previous closing price of GHc1.70. Fan Milk began the year with a share price of GHc 1.08 and has since gained 63% on that price valuation, ranking it fourth on the GSE in terms of year-to-date performance.
However, Analysts predict that there is going to be a rebound in trading activity as the week begins, coupled with an improvement in investor confidence; also, alongside a market valuation which may drive the demand for stocks across the telecommunication, banking, insurance and oil sectors.
Also, as demand for bargain stock increase, experts believe the stock market is likely to pick up this week.
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