Momentum and trend in the Ghana Stock Exchange (GSE) was positive as the local bourse recorded a massive jump in trading activity after coming back from the Christmas holidays.
According to the market report, at the end of the first trading session after the holidays, the Ghana Stock Exchange (GSE) recorded a total transaction of 4,858,993 shares, corresponding to a market value of GHS 6,492,593.57. Compared with the previous GSE trading day (Friday, December 24), Wednesday’s data showed 765 percent improvement in volume and 276 percent improvement in turnover.
That notwithstanding, the market ended on the flat note. In the aggregate, seven GSE equities participated in trading. There were no gainers nor losers.
Pattern analysis shows bulls started with a very strong breakout but failed to maintain the momentum, as financial sector stocks and telecommunication stocks witnessed an excellent improvement in trading activity.
The telecommunication sector counter led the market in terms of volume of activity witnessed. The Scancom PLC recorded the highest volume of 4.31 million traded shares. This was followed by Fan Milk Ghana Limited with 275,861 traded shares. The financial sector counter also secured the final two spots with Societe Generale Ghana recording 205,567 traded shares and GCB Bank finishing the top movers list with 50,800 traded shares.
Prices of Some of Major Stocks
MTN Ghana closed its trading day at GHS1.13 per share on the Ghana Stock Exchange (GSE). MTN began the year with a share price of GHS0.64 and has since gained 76.6 percent on that price valuation, ranking it seventh on the GSE in terms of year-to-date performance.
Fan Milk Ghana Limited also closed its trading day (Wednesday, December 29, 2021) at GHS4.00 per share on the Ghana Stock Exchange (GSE). Fan Milk began the year with a share price of GHS1.08 and has since gained 270 percent on that price valuation, ranking it first on the GSE in terms of year-to-date performance.
Societe Generale Ghana (SOGEGH) closed its trading day at GHS1.20 per share on GSE. Societe Generale began the year with a share price of GHS0.64 and has since gained 87.5 percent on that price valuation, ranking it sixth on the GSE in terms of year-to-date performance.
Market Performance
The key benchmark indices managed to hover near the highs and lows of the day on the back of buying and selling pressure from MTN Ghana, but eventually maintained its value.
On the back of this performance, the benchmark GSE Composite Index (GSE-CI) did not see any change, closing at the same mark as it opened at 2,817.74 points. This translated into a week on week loss of 0.04 percent, a month on month loss of 1.46 percent. However, it recorded an overall year-to-date gain of 45.13 percent.
Similarly, there was no upward or downward trend in the financial stock indices. The GSE Financial Stocks Index (GSE-FSI) which measures the banks and insurance stocks maintained its value at 2,151.85 points. Nonetheless, this led to a 1-week gain of 2.96 percent, a 4-week gain of 3.54 percent, and a year-to-date gain of 20.7 percent.
On the other hand, the market capitalization which measures the value of the stocks that are traded on the Ghana Stock market, calculated by multiplying the total number of shares by the present share prices also maintained its value. The current market capitalization of the Ghana Stock Exchange stands at GHS 64.8 billion.
All in all, analysts expect the market to remain range-bound throughout the last days of the final week of 2021. Experts also recommend avoiding shorts as there are no definite signs of weakness on the charts, coupled with rise in demand for bargain stocks.
READ ALSO: Security Analyst Describes Security on Beenie Man’s Escape as Disappointing
