The stock market activities have been very impressive with equities traded recording its highest volume of 115.63 million and value of GHS101.53 million.
This is according to the latest summary of market activities published by the Ghana Stock Exchange (GSE) which indicates that in terms of equities “volume and value traded during November 2020 surged significantly with volume traded up by 226% and value traded up by 118% over October 2020”.
Cumulatively, from the beginning of the year that is January 2020 to November 2020 volume and value trade summed up to approximately 555. 03 million and GHS443.24 million, respectively. Also, the figures for 2020 show an increase of 79.91% for volume and 721.38% for value as compared to same period in 2019 when adjusted for the block trade in ETI, the report stated.
Likewise, the bond market “continued to grow strong with November becoming the third month in 20202 to record trades in excess of 10 billion,” the report mentioned.
The report further asserted that the reason for such impressive outcome in the stock market is because “investors’ appetite for equity is fueled by the cheap valuations on the market” adding that about half the issuers totaling 16 in number are “trading at price/earnings multiples (PE’s) of 5 or below, and 20 issuers are trading at single digit PE’s”.
This means that investors are willing to pay less amount per Ghana cedi of earnings or can expect to invest less amount when trading in a company in order to receive one cedi of the company’s earnings.
MTN Ghana dominated trading activities for the period under review, the report disclosed with volume and value traded making up 88.5 percent and 61.44 percent respectively.
Unfortunately, the GSE-Composite Index (CI) has declined to 1818.68 by the end of November 2020 as compared to 2137.94 recorded for the same period last year, depicting a year to date change of negative 14.93 percent.
In a similar vein, market capitalization has also reduced marginally falling to about GHS53.09 billion from January to November 2020 as against GHS55.56 recorded in the same period the previous year, indicating a decrease of 4.46 percent year-on-year.
The Ghana Fixed Income Market (GFIM) continued its high trades with a closing volume of 10.27 billion for the month of November, which “unseated July by 38.09 million to set a new record as the second highest traded for the year. This also represents a 72.07% growth compared to the same period in 2019”.
“The January to November 2020 cumulative volume trade of 95.06 billion represented a 91.37% increase, which was almost double for the same period in 2019 and 71.11% more than total trade in the whole of 2019”.
