The Ghana Stock Exchange (GSE) witnessed a trading session marked by contrasting performances from key equities on Wednesday, August 28, 2024.
While the overall market activity showed a decline in both trading volume and turnover, the fortunes of two prominent players—NewGold ETF and TotalEnergies Marketing Ghana—highlighted the divergent trends in the equities market.
At the end of the trading day, a total of 73,527 shares were exchanged, representing a market value of GHS 6,450,375.50. These figures, though substantial, reflected a noticeable decline from the previous trading session.
Compared to the trading activity on Tuesday, August 27, the market experienced a 6% drop in trading volume and a more pronounced 32% decrease in turnover. This downturn in market activity signaled investor caution, possibly influenced by broader economic factors or market-specific news that tempered trading enthusiasm.
In aggregate, 15 equities listed on the GSE participated in the trading session. However, despite the broad participation, only two equities stood out for their price movements—TotalEnergies Marketing Ghana, which emerged as the sole gainer, and NewGold ETF, which recorded a minor loss.
TotalEnergies Marketing Ghana Emerges the Lone Bright Spot
TotalEnergies Marketing Ghana (TOTAL) was the standout performer of the day, closing at GHS 12.40 per share. This represented a modest gain of 4 pesewas over its previous closing price of GHS 12.36, translating to a 0.32% appreciation in its share price.
Although this gain was relatively small, it was significant in a trading session characterized by a general decline in market activity.
TotalEnergies’ performance on the GSE has been impressive throughout the year. Starting the year with a share price of GHS 9.00, the company has consistently gained ground, now boasting a year-to-date appreciation of 37.8%.
This strong performance places TotalEnergies eighth on the GSE in terms of year-to-date returns, reflecting the company’s resilience and the confidence investors have in its long-term prospects.
The gains made by TotalEnergies are likely underpinned by the company’s strong operational performance and strategic initiatives that have resonated well with the market. As one of the leading players in Ghana’s energy sector, TotalEnergies’ ability to navigate the complex market dynamics, including fluctuating oil prices and regulatory changes, has been a key driver of its stock’s upward trajectory.
NewGold ETF’s Minor Setback Amidst Strong Performance
On the flip side, NewGold ETF (GLD) recorded a slight dip in its share price, closing at GHS 381.26, a mere 0.01% drop from its previous closing price. While this decline might seem negligible, it marked the only loss in the trading session, contrasting with its otherwise stellar performance throughout the year.
NewGold ETF began the year with a share price of GHS 218.50 and has since achieved a remarkable 74.5% increase, making it the second-best performer on the GSE in terms of year-to-date gains.
The ETF, which tracks the price of gold, has benefited from the global rise in gold prices, driven by factors such as geopolitical uncertainties and inflation concerns, which have boosted demand for safe-haven assets.
Despite the minor loss, NewGold ETF continues to be a favored investment on the GSE, particularly for those looking to hedge against currency fluctuations and economic instability. The ETF also recorded the highest trading volume of the day, with 16,566 shares changing hands, underscoring its liquidity and the continued interest it attracts from investors.
Market Indices Hold Steady
Despite the mixed performances of individual equities, the GSE’s key indices remained relatively stable. The GSE Composite Index (GSE-CI) edged up slightly by 0.41 points, or 0.01%, closing at 4,353.79 points.
This marginal gain reflected a week-on-week increase of 0.01%, though the index has seen a 4-week loss of 3.05%. However, on a year-to-date basis, the GSE-CI has posted an impressive gain of 39.09%, highlighting the overall bullish trend in the market this year.
The GSE Financial Stocks Index (GSE-FSI), which tracks the performance of financial sector stocks, maintained its value at 2,118.06 points. This index has seen a 4-week gain of 1.05% and a year-to-date increase of 11.38%, indicating a relatively stable performance in the financial sector despite broader market fluctuations.
In all, while TotalEnergies continued its upward trajectory, reflecting investor confidence in its long-term prospects, NewGold ETF’s minor loss did little to detract from its strong year-to-date performance. As the market navigates varying economic conditions, these equities are likely to remain focal points for investors seeking stability and growth on the Ghana Stock Exchange.
