The Ghana Stock Exchange (GSE) has recorded a mixed performance on the second week of the month with the benchmark index inching upward, a sign that the market is gradually recovering from its recent decline.
Under the week in review, the GSE-Composite Index recorded a magnificent 4.87 percent increase. The rise in the benchmark index shows that there was a change in investor attitude last week regarding the Accra bourse.
However, the GSE-Financial Stocks Index experienced a minor pullback with a decline of 0.06 percent, the market showed resilience, bringing the respective year-to-date performances to 7.92% and -18.39%.
In the week under review, a total of twenty-five (25) equities were traded, each contributing to the overall market dynamics. Some of the notable top performers were, Guinness Ghana Breweries Limited (GGBL), MTN Ghana, and Fan Milk Ghana Limited (FML).
The above listed blue chips recorded major price gains. GGBL witnessed a gain of GH¢0.17, while MTNGH rose by GH¢0.10, and FML experienced a marginal increase of GH¢0.01, closing at GH¢1.93, GH¢1.19, and GH¢1.31, respectively. These price gains signal the growing confidence in the respective companies and their potential for future growth.
On the other hand, SIC Insurance PLC and Enterprise Ghana Limited (EGL) – two blue chips in the financial sector emerged the biggest laggards last week. SIC recorded a loss of GH¢0.01, closing at GH¢0.23, while EGL shed GH¢0.02, closing at GH¢2.41.
Trading Volume and Value Decline
Not withstanding the gains in the benchmark index, the overall trading volume and value witnessed a dip compared to the previous week. In all, a total of 397,663 shares were traded, culminating in a value of GH¢741,029.88.
This shows a decline of 42.52% in volume traded and a substantial 48.44% decline in value traded. The decline in volume suggests that investors may have adopted a cautious approach, possibly due to ongoing market uncertainties or a shift in investment strategies.
Guinness Ghana Breweries PLC emerged as the most actively traded stock during the week, dislodging MTN Ghana in the process a with a total trade value of GH¢253,717.80, representing 34.24% of the week’s total traded value. This significant participation in the market highlights the popularity of the company’s shares and indicates investor confidence in the brewing industry during last week.
Notwithstanding the current volatility, the market demonstrated resilience, with the rise in market capitalization being a particularly encouraging sign for market participants.
Market participants witnessed a rise in market capitalization, which climbed by GH¢1.27 billion from the previous week, ultimately closing at GH¢67.20 billion.
With the GSE-Composite Index’s impressive growth and the slight decline in the GSE-Financial Stocks Index, it is safe to say the market is on its way to recovery.