After a prior gain on Tuesday, October 18, blue chip stocks traded flat as activity declines a modest amount on the Ghana Stock Exchange (GSE) to start the second day of the week after close of session on October 19, 2021.
According to market report, six GSE equities participated in trading. However, all the major blue chip stocks that participated in Tuesday’s market session, closed the trading session without a gain or a loss. This means that the stock prices of these equities neither increased nor decreased.
Additionally, trading activity declined considerably as a result of lacklustre performance of these stocks. At the end of the second weekday of trading on the Ghana Stock Exchange (GSE), a total of 358,399 shares changed hands, corresponding to a market value of GHc 427,769.50.
Comparatively, this is a decline on the previous trading session. Tuesday’s data show 31% decline in volume and 81% decline in turnover. A total of 469,502.69 shares was traded on Monday’s trading session.
However, despite the decline in stock market performance, the banking sector and Information and Communications Technology (ICT) stocks led the market with MTN Ghana again recording the highest volume of shares traded.
The stocks initially ticked higher on the results, before giving back those gains and dipping into the red during extended trading. It later entered the flat line and ended the session on the flat line.
MTN Ghana closed the session as a leader with the highest volume of 345,734 traded shares. This was followed by Societe Generale Ghana with 6,875 traded shares. CAL Bank and Ecobank Transnational followed in that order with 5,000 shares and 640 shares traded respectively.
Nonetheless, regarding the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) did not see any change, closing at the same mark as it opened at 2,848.01 points. Meanwhile, this represents a 1-week loss of 0.24 percent and a 4-week gain of 1.54 percent. Moreover, It also represented an overall year-to-date gain of 46.68 per cent.
Similarly, the GSE Financial Stocks Index (GSE-FSI) which constitutes only listed stocks from the financial sector including banking and insurance sector stocks, also maintained its value at 2,070.00 points, making it a 1-week gain of 0.37 percent and a 4-week gain of 3.77 percent, and a year-to-date gain of 16.11 percent.
Furthermore, the market capitalization which captures the total market value of all outstanding shares, hence determining the worth of various companies listed on the local bourse, also remained at GH¢64.1 billion.
Meanwhile, some strategists see the market heading into a volatile period in which there could be a deeper pullback.
However, analysts predict that there is going to be a rebound in stock market activity as the week ticks away, coupled with an improvement in investor confidence.
While it may seem like the stock market is going nowhere, it may be quietly winding itself up for a big climb.