Positive sentiments resurfaced on the local bourse as major indicators showed mildly bullish feeling inasmuch as the market witnessed bargain hunting for value stocks from investors with over GH¢100 million gains in market capitalization.
Strong demand in the stocks of market bellwethers such as Societe Generale Ghana Limited (SOGEGH) and Fan Milk Ghana Limited (FML) buoyed a sterling performance of the listed equities on the Ghana Stock Exchange (GSE).
This impressive performance by the two major stocks listed above, drove the market capitalization by 0.16 percent. In the meantime, the market capitalization which previously on Monday, September 20, stood at GH¢63.6 billion, surged to GH¢63.7 in last trading session on Wednesday September 22, 2021.
GSE Composite Index
Consequently, the benchmark GSE Composite Index (GSE-CI) climbed by 9.68 points to close at 2,814.38 points, representing 0.35 percent increase. This also culminated to a weekly gain of 0.93 percent and a monthly gain of 1.96 percent leading to an overall year-to-date gain of 44.95 percent.
However, across the sectors, it was mixed on Wednesday as the telecommunication and oil and gas indices closed flat while the financial sector counter led the gainers’ table.
The GSE Financial Stocks Index (GSE-FSI) increased by 0.68 percent to reach 2,008.40 points, making it a 1-week gain of 1.41 percent, a 4-week gain of 5.04 percent, and a year-to-date gain of 12.66 percent.
In the aggregate, six GSE equities participated in trading, ending with two gainers and no losers. The two gainers were Societe Generale Ghana (+9.65%) and Fan Milk (+9.52%).
SOGEGH closed its last trading day (Wednesday, September 22, 2021) at GH¢1.25 per share on the Ghana Stock Exchange, recording a 9.6 percent gains over its previous closing price of GH¢1.14.
On the other hand, FML also closed its last trading day at GH¢2.30 per share on the Ghana Stock Exchange (GSE), recording a 9.5 percent gain over its previous closing price of GH¢2.10.
Despite the gains, the level of market trading activity was mixed as total traded volume declined by over 80 percent while the value marginally went up by 3 percent.
At the end of Wednesday’s trading session on the Ghana Stock Exchange (GSE), a total of 287,389 shares, corresponding to a market value of GHS 408,782.74, were traded. Previously, a total of 63,549.56 shares changed hands, representing a decline of 89 percent.
Market Leaders by Volume
Meanwhile, the top three most traded stocks by volume on Wednesday were: MTN Ghana, Fan Milk Ghana and Societe Generale Ghana Limited.
MTN Ghana recorded the highest volume of 234,754 traded shares. This was followed by Fan Milk Ghana Limited with 50,000 traded shares. In addition, Societe Generale Ghana also secured 1,467 traded shares and Ecobank Transnational with 960 traded shares.
Analysts, however, maintains that the mildly bullish performance experienced on Wednesday will be extended on the back of bargain hunting activities in the market.