The Ghana Stock Exchange (GSE) has traded flat as market capitalization increased while trading activity more than doubled at the end of the first trading session of the week on Monday, December 05, 2022.

According to the market report, all the seven major stocks that participated in Monday’s trading closed the session without a gain or a loss. This means that the stock prices of these equities neither increased nor decreased.

Complimenting Monday’s performance, trading activity rose considerably for the second-time running. At the end of the day, a total of 126,678 shares, corresponding to a market value of GHS 114,269.44, were traded. Compared with the previous GSE trading day (Thursday, December 1), the data showed 223% improvement in volume and 23% improvement in turnover.

Despite the flat market performance, the banking sector and telecommunication sector stocks led the market with MTN and Ecobank Transnational recording the highest volume of shares traded.

MTN Ghana recorded the highest volume of 123,056 traded shares, followed by Ecobank Transnational (1,500), CAL Bank (1,000) and Access Bank Ghana (716).

Market Cap Rises

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¢64.8 billion compared to the previous trading session.

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.

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 2,463.44, representing a 1-week gain of 0.01%, a 4-week gain of 0.13%, but an overall year-to-date loss of 11.68%. The benchmark GSE-Composite index is based on the volume weighted average closing price of all listed stocks.

GSE Financial Index Maintained it’s Value

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 2,076.84 points. This represents a 4-week gain of 0.34%. However, it led to a year-to-date loss of 3.49%.

Analysts predict that there is going to be a further rise in trading activity as the week continues, 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.