Momentum and trend in the Ghana Stock Exchange (GSE) was positive on Tuesday’s trading session (November 2, 2021), as trading activity increased by over 900 percent.

Pattern analysis shows bulls staged a very strong breakout above the red zone, as financial sector stocks and telecommunication stocks witnessed an excellent improvement in trading activity.

At the end of Tuesday’s trading session on the Ghana Stock Exchange (GSE), a total of 530,246 shares, corresponding to a market value of GHS 1,397,797.00, were traded. Compared with the previous GSE trading day (Monday, November 1), Tuesday’s data show 945 percent improvement in volume and 962 percent improvement in turnover.

The financial sector counter led the market in terms of volume of activity witnessed. GCB Bank recorded the highest volume of 236,075 traded shares on the day. This was followed by Ecobank Transnational with total traded shares of 171,066. CAL Bank and MTN Ghana followed the trail with 92,519 and 21,810 total volume of shares traded respectively.

Benchmark Indices

The key benchmark indices managed to hover near the highs and lows of the day on the back of buying support in NewGold ETF, but eventually maintained its value.

Regarding the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) did not see any change, closing at the same mark as it opened at 2,865.97, representing a 1-week gain of 0.35 percent, a 4-week loss of 0.17 percent, but an overall year-to-date gain of 47.61 percent.

The GSE Financial Stocks Index (GSE-FSI) also maintained its value at 2,082.12 points, making it a 4-week gain of 1.31 points, and a year-to-date gain of 16.79 percent.

Similarly, there was no upward or downward trend in market capitalization as it maintained its value. The current market capitalization of the Ghana Stock Exchange stands at GHS 64.3 billion

In the aggregate, 11 GSE equities participated in trading, ending with only one gainer, namely NewGold ETF, with 4.17 percent share price appreciation.

NewGold ETF Share Price Appreciates

NewGold ETF closed its trading day (Tuesday, November 2, 2021) at 108.60 GHS per share on the Ghana Stock Exchange (GSE), recording a 4.2% gain over its previous closing price of 104.25 GHS. NewGold ETF began the year with a share price of GHS105.50 and has since gained 2.94% on that price valuation, ranking it 16th on the GSE in terms of year-to-date performance.

NewGold ETF is the 28th most traded stock on the Ghana Stock Exchange over the past three months (Aug 5 – Nov 2, 2021). GLD has traded a total volume of 100 shares valued at GHS 10,390 over the period, with an average of 2 traded shares per session. A volume high of 70 was achieved on September 28, for the same period.

All in all, analysts expect the market to remain range-bound throughout the week. Experts also recommend avoiding shorts as there are no definite signs of weakness on the charts.