The Ghana Stock Exchange experienced a bearish session, with both the benchmark index and GSE-Composite Index nose-diving as a result of significant losses suffered by MTN Ghana.
The bearish trading day ended with eleven (11) equities taking part in trading and unfortunately ending with no gainer but one loser namely MTN Ghana.
MTNGH closed its trading day (Wednesday, April 12, 2023) at GHS1.20 per share on the Ghana Stock Exchange (GSE), recording a 6 pesewa drop from its previous closing price of GHS1.26.
However, MTN began the year with a share price of GHS0.88 and has since gained 36.4% on that price valuation, ranking it third on the GSE in terms of year-to-date performance. Despite the current loss, shareholders can be optimistic about MTNGH knowing the stock has accrued 17% over the past four-week period—third best on GSE.
MTN Ghana is the number one most traded stock on the Ghana Stock Exchange over the past three months (Jan 11 – Apr 12, 2023). MTNGH has traded a total volume of 175 million shares valued at GHS 160 million over the period, with an average of 2.77 million traded shares per session. A volume high of 160 million was achieved on March 24 for the same period.
Even with the current decline, MTN Ghana is currently the third most valuable stock on the GSE with a market capitalization of GHS 14.7 billion, which is about 21.9% of the entire Ghana Stock Exchange equity market.
The GSE benchmark index dropped by 70.66 points to close at 2,687.76 points, representing a 9.98% year-to-date change.
The GSE Financial Stocks Index on the other hand remained unchanged, closing the day at 1,806.67 points, representing a year-to-date return of -11.98%.
Market Activity Level Rises
Despite the market’s downturn, market activity did recover from the previous day’s declines, with a staggering 6269.40% rise in volume traded and a 4326.69% increase in value traded. The total shares traded were 3,510,493, valued at GH¢4,216,582.81, across the eleven equities.
Scancom PLC (MTNGH) emerged as the top trading entity, with 3,505,303 shares valued at GH¢4,206,787.78, representing 99.77% of the total value traded. This was followed by Cal Bank PLC (CAL), trading 2,935 shares valued at GH¢1,467.50, representing 0.13% of the total value traded. The rest are Ecobank Ghana (1,010) and Guinness Ghana Breweries (636).
Meanwhile, the lack of gainers on the trading day was notable as the market capitalization declined by GH¢737.43 million to end the trading session at GH¢67.22 billion.
While the reasons for the negative sentiment in the market are multifaceted, investors will be watching the market closely for signs of improvement in the coming days and weeks.
The downturn in the market is coming on the back of a great performance by the local bourse in the first quarter of the year. However, this latest result is consistent with analysts predictions that second quarter will be characterized with losses and gains.
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