On the first weekday of trading on the Ghana Stock Exchange (GSE), the market witnessed a notable slump, with a significant decline in both trading volume and turnover.
Despite the broader market’s downturn, the NewGold ETF (GLD) stood out as the only gainer, showcasing its resilience amidst the prevailing market conditions.
The GSE experienceed a sharp drop in trading activity at the start of the week. A total of 38,946 shares were traded, which corresponded to a market value of GHS 1,065,959.89.
This represents a significant decrease in both trading volume and turnover when compared to the previous trading day on Friday, August 23. Specifically, there was a 97% decline in trading volume and an 82% decrease in turnover, signaling a substantial contraction in market activity.
Despite this downturn, 11 equities on the GSE participated in trading. However, the broader market sentiment remained bearish, as indicated by the lack of upward movement in most stocks.
The benchmark GSE Composite Index (GSE-CI) closed the day unchanged at 4,353.38 points, reflecting a 1-week loss of 1.16%, a 4-week loss of 3.05%, and a year-to-date gain of 39.08%.
Similarly, the GSE Financial Stocks Index (GSE-FSI) also remained flat at 2,118.06 points, with a 1-week loss of 0.24%, a 4-week gain of 1.11%, and an overall year-to-date gain of 11.38%. The market capitalization of the GSE remained steady at GHS 91.9 billion, indicating a pause in the recent bullish trend.
The Sole Gainer
Amid the market’s overall lackluster performance, NewGold ETF emerged as the sole gainer, recording a 1.38% appreciation in its share price. The ETF closed its last trading day at GHS 381.20 per share, marking a GHS 5.20 increase over its previous closing price of GHS 376.00.
This gain is particularly noteworthy, as it underscores the ETF’s resilience in a market that has otherwise struggled to maintain momentum.
NewGold ETF has been a standout performer on the GSE throughout the year. Beginning the year with a share price of GHS 218.50, the ETF has since gained an impressive 74.5% in value.
This performance places NewGold as the second-best performing equity on the GSE in terms of year-to-date returns. Over the past four weeks, the ETF has accrued a 5% gain, making it the sixth-best performing stock on the GSE over this period.
The strong performance of NewGold ETF can be attributed to several factors. As a commodity-based ETF that tracks the price of gold, it has benefited from the rising demand for gold as a safe-haven asset in times of economic uncertainty.
Investors often turn to gold during periods of market volatility and economic instability, and this trend has been evident in the ETF’s robust performance.
MTN Ghana Leads in Trading Volume
While NewGold ETF led in terms of price appreciation, MTN Ghana recorded the highest volume of shares traded on the GSE for the day. A total of 29,805 MTN shares changed hands, making it the most actively traded stock on the market.
This was followed by SIC Insurance Company, with 3,150 shares traded, NewGold ETF with 2,596 shares, and CalBank with 1,370 shares. The high trading volume of MTN Ghana reflects the stock’s strong liquidity and its position as a key player in the telecommunications sector in Ghana.
The significant decline In trading volume and turnover on the GSE may be a cause for concern, as it suggests a potential slowdown in investor activity. However, the steady performance of market indices and the resilience of stocks like NewGold ETF provide a measure of optimism.
Investors may find comfort in the fact that the market’s overall year-to-date performance remains positive, with the GSE-CI showing a gain of 39.08%.
Looking ahead, the performance of the GSE will likely be influenced by a range of factors, including global economic conditions, investor sentiment, and developments in key sectors such as telecommunications, finance, and commodities.
The NewGold ETF, with Its strong track record and alignment with gold prices, may continue to be a favored investment choice for those seeking stability amidst uncertainty.
READ ALSO: Miracle Aboagye outlines Economic Turbulence and Recovery Efforts
