MTN Leads a Half-hearted Recovery in Ghanaian Stock Market

The Ghana Stock Exchange (GSE) staged an unconvincing recovery on Monday, November 15, 2021, as early gains were eroded by the end of the session with MTN Ghana showing a half-hearted rebound from Monday’s sell-off.

The hints of new taxes in the Wednesday’s budget continue to dampen the mood of investors at the Ghana Stock market, MTN Ghana on the first week day dominated market volumes and values. Out of the nine GSE equities that participated in the trading session, it ended with one gainer namely MTN Ghana, while the rest traded flat. MTN Ghana recorded a narrow 1.54 percent share price appreciation to cap off the session.

The telecommunication giant closed its trading day (Monday, November 15, 2021) at GHS1.32 per share on the Ghana Stock Exchange (GSE), while previously closing at the price of GHS1.30. It is also worth noting that MTN began the year with a share price of GHS0.64, and has since gained 106 percent on that price valuation.

The latest outing by MTN Ghana enhanced its ranking in terms of YTD. MTN Ghana moved from fourth to third on the GSE in terms of year-to-date performance. Shareholders can at least be optimistic about MTNGH knowing the stock has accrued 10 percent over the past four-week period—fourth best on GSE.

Market Activity

Conversely, MTN Ghana’s grip on the first position in terms of total traded shares remain positive. MTN Ghana is the number one most traded stock on the Ghana Stock Exchange over the past three months (Aug 18 – Nov 15, 2021). MTN Ghana has traded a total volume of 46.5 million shares valued at GHS 56.9 million over the period, with an average of 738,301 traded shares per session. A volume high of 8.29 million was achieved on September 27, and a low of 871 on November 5, for the same period.

At the end of the first weekday trading on the Ghana Stock Exchange (GSE), a total of 2,327,568 shares, corresponding to a market value of GHS 3,111,171.07, were traded, which is a huge improvement on the previous trading activity. Previously, at the end of Friday’s (November 12, 2021) trading on the Ghana Stock Exchange (GSE), a total of 31,699 shares, corresponding to a market value of GHS 124,345.52, were traded.

MTN Ghana again led the charge of top movers on the GSE. It recorded the highest volume of 2.31 million traded shares and was followed by Enterprise Group which emerged with 14,685. Benso Oil Palm Plantation also managed to secure 3,236 of total traded shares and CAL Bank with 843 traded shares.

GSE Market Indices

Regarding the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) moved up by 23.49 points to close at 2,994.49 points, representing 0.79 percent. This led to a 1-week gain of 0.89 percent and a month on month gain of 5.14 percent, and an overall year-to-date gain of 54.23 percent.

The GSE Financial Stocks Index (GSE-FSI) on the other hand, maintained its value at 2,073.46 points. Cumulatively, it ended up with a 1-week loss of 0.37 percent and a 4-week gain of 0.17 percent, and a year-to-date gain of 16.31 percent.

That notwithstanding, the market capitalization also increased by GHS 200 million. Thus, the current market capitalization of the Ghana Stock Exchange stands at GHS 65.6 billion.

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