Positive sentiments resurfaced on Wednesday in the local bourse as top rally in telecommunication and financial stocks, drove positive performance that saw the GSE year-to-date (YTD) returns cross the positive line for the first time in the new year.
As measured by the market breadth, investors’ sentiment strengthened in the last trading session as 2 stocks gained while no stocks lost at the end of trading session. However, the rest of the stocks traded flat as they closed the same way they opened. Furthermore, these stocks have also gained strong price momentum according to technical indicators and delivered impressive returns in the Wednesday’s session.
The benchmark index, as a result, inched up 0.86 percent following the rally in Trust Bank Gambia Limited (TBL) and MTN Ghana. The benchmark GSE Composite Index (GSE-CI) moved up 23.68 points to close at 2,789.52 points, representing a 1-week gain of 2.17 percent. However, this led to a 4-week loss of 0.38 percent, but an overall year-to-date gain of 0.01 percent.
It was a bullish performance across the financial sector front, leading to a rise in the GSE Financial Stocks Index (GSE-FSI) by 0.02 points to reach 2,154.03 points, making it a 1-week gain of 0.1 percent, a 4-week gain of 3.71 percent, and a year-to-date gain of 0.1 percent.
Gainers
The two gainers on the day were Trust Bank Gambia Limited (TBL) (+2.7%) and MTN Ghana (MTNGH) (+1.83%).
Trust Bank Gambia Limited maintained its fine form of not recording a loss since the turn of the year. TBL closed its trading day (Wednesday, January 19, 2022) at GH¢0.38 per share on the Ghana Stock Exchange (GSE), recording a GH¢0.1 gain over its previous closing price of GH¢0.37. Trust Bank Gambia began the year with a share price of GH¢0.34 and has since gained 11.8 percent on that price valuation, ranking it first on the GSE in terms of year-to-date performance.
By the same token, MTNGH closed its trading day (Wednesday, January 19, 2022) at GH¢1.11 per share on the Ghana Stock Exchange (GSE), recording a GH¢0.02 appreciation, which represents 1.8 percent gain over its previous closing price of GH¢1.09.
MTN Ghana maintained the number one position of the most traded stock on the Ghana Stock Exchange over the past three months (Oct 18, 2021 – Jan 19, 2022). MTNGH has traded a total volume of 88.4 million shares valued at GHS 102 million over the period, with an average of 1.4 million traded shares per session. A volume high of 19.6 million was achieved on January 4, 2022 for the same period.
Trading Activity
The bourse has, thus far, shown a more improved outlook in terms of activities. Trading activity levels surged on Wednesday as volume and value traded increased.
At the end of Wednesday’s trading session on the Ghana Stock Exchange, a total of 1,609,189 shares, corresponding to a market value of GHS 1,916,233.16, were traded. Compared with the previous GSE trading day (Tuesday, January 18), Wednesday’s outing showed 193 percent improvement in volume and 226 percent improvement in turnover.
The most traded equities by volume was MTN Ghana. MTN Ghana has recorded the highest volume of 1.57 million traded shares, followed by GCB Bank (30,000), Enterprise Group (5,185) and Ecobank Transnational (3,200).
On the flip side, the current market capitalization of the Ghana Stock Exchange declined by GH¢200 million to settle at GH¢ 64 billion.
However, the stocks are on the verge of a breakout from a sideways consolidation phase, suggesting that bullishness is building up for the subsequent trading sessions.
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