The benchmark composite index declined by a huge margin as the financial index holds steady in Wednesday’s trading session on the back of MTN Ghana’s share price slip.

The benchmark GSE-Composite Index plunged by 109.57 points to close at 2,861.11 points. The decline in the benchmark index has led to a 17.07% Year-to-Date (YTD) return. This represents a week-on-week gain of 1.39 percent and a month-on-month gain of 8.42 percent.

Furthermore, the Financial Stocks Index remained stagnant, failing to register any gains, and closing at 1,685.31 points, reflecting a YTD return of -17.89%. This also led to a 1-week loss of 0.36% and a 4-week gain of 0.47%. The overall lackluster performance across the financial sector further contributed to the prevailing market decline.

In the aggregate, 16 GSE listed equities participated in trading, ending with one loser, namely MTN Ghana, with 6.21% share price depreciation. Notably, the trading session witnessed a complete absence of price gainers. Investors found themselves grappling with an arid market, devoid of any stocks experiencing an upswing.

MTNGH closed the trading day (Wednesday, July 12, 2023) at GHS1.36 per share on the Ghana Stock Exchange (GSE), recording a 9 pesewa drop from its previous closing price of GHS1.45. MTN began the year with a share price of GHS0.88 and has since gained 54.6% on that price valuation, ranking it fourth on the GSE in terms of year-to-date performance. However, shareholders can be optimistic about MTNGH knowing the stock has accrued 14% over the past four-week period—third best on GSE.

MTN Ghana remains the number one most traded stock on the Ghana Stock Exchange over the past three months (Apr 12 – Jul 12, 2023). MTNGH has traded a total volume of 28 million shares valued at GHS 34.9 million over the period, with an average of 445,205 traded shares per session.

Market Capitalization Takes a Hit

As a result of the lackluster performance, the total market capitalization took a substantial hit, contracting by GH¢1,191.26 million and settling at GH¢70.82 billion. This notable erosion in market value underlines the prevailing challenges facing investors and raises concerns about the broader economic landscape.

Trading volumes, while subdued, accounted for 448,715 shares valued at GH¢415,211.05 across a selection the 16 equities. Of these, Cal Bank PLC (CAL) emerged as the dominant player, commanding the highest volume of shares traded. The bank’s shares, totaling 385,329, were valued at GH¢231,429.74, representing a substantial 55.74% of the total value traded. Scancom PLC (MTNGH) followed closely behind, with 47,034 shares traded at a value of GH¢64,374.05, contributing to 15.50% of the total value traded. GCB Bank (6,062) and Benso Oil Palm Plantation (5,607) completed the list.

The GSE’s unenthusiastic performance and the absence of positive price movements underscored the emergence of profit taking market participants.