After languishing below the 2,900-point mark for weeks, the benchmark of the Ghana stock market got within striking distance of the psychologically significant level on Monday, thanks to a surging run of two major stocks on the stock board, which culminated to massive hike in the market capitalization.
After climbing to a month-high, the main index will have to test itself against the usual resistance it runs into when it approaches 2,900 points mark.
The benchmark Ghana Stock Exchange Composite Index (GSE-CI) closed Monday’s trading session at 2,968.01 points, adding 36.43 points, representing 1.24 percent. This led to a 1-week gain of 3.56 percent, a monthly gain of 3.34 percent, and an overall year-to-date gain of 52.86 percent.
While the financial sector index of the Ghana stock market spent the entire day on Monday counting gains, it ended the session on the back foot, near the day’s lows, with marginal gains. The GSE Financial Stocks Index (GSE-FSI) also soared by 0.1 percent to reach 2,081.25 points, making it a 1-week loss of 0.04 percent, a 4-week gain of 1.12 percent, and a year-to-date gain of 16.74 percent. However, this slight gain technically appears promising ahead of the year’s last couple of weeks, where Finance Minister of Ghana prepares to present it’s budget.
Market Capitalization
The market capitalization in recent times is no stranger to extreme highs and lows. Monday’s outing delivered another stunning gains. The market capitalization gained GHS400 million by the close of market session. The current market capitalization of the Ghana Stock Exchange stands at GHS 65.3 billion. Previously, it stood at GHS 64.9 billion.
In total, four GSE equities participated in trading, ending with two gainers and no losers. The other two equities traded flat with no gain or lose.
The two gainers were CAL Bank (+2.56%) and MTN Ghana (+2.36%). CAL closed its trading day (Monday, November 8, 2021) at GHS0.80 per share on the Ghana Stock Exchange (GSE), recording a 2.6 percent gain over its previous closing price of GHS0.78.
CAL Bank is the second most traded stock on the Ghana Stock Exchange over the past three months (Aug 11 – Nov 8, 2021). CAL has traded a total volume of 12 million shares valued at GHS 8.88 million over the period, with an average of 190,894 traded shares per session.
MTN Ghana on the other hand, closed its trading day (Monday, November 8, 2021) at GHS1.30 per share on the Ghana Stock Exchange (GSE), recording a 2.4 percent gain over its previous closing price of GHS1.27. MTN began the year with a share price of GHS0.64 and has since gained 103 percent on that price valuation. However, it ranks third on the GSE in terms of year-to-date performance. Shareholders can be hopeful and confident about the future of MTNGH knowing the stock is performing well.
MTN Ghana is the number one most traded stock on the Ghana Stock Exchange over the past three months (Aug 11 – Nov 8, 2021). It traded a total volume of 48.8 million shares valued at GHS 59.5 million over the period, with an average of 774,398 traded shares per session. A volume high of 8.29 million was achieved on September 27, and a low of 871 on November 5.
At the end of the first weekday of trading on the Ghana Stock Exchange (GSE), a total of 1,481,734 shares, corresponding to a market value of GHS 1,952,046.78, were traded.
Analysts expects a sustained bullish performance throughout the week, particularly resulting from an increase in demand for bargain stocks.
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