Ghanaian equity market remained in its previous trading formation on December 14, 2021. The market saw a tepid opening, pulling the stocks into the negative zone, but managed to recover bulk of the opening losses by afternoon trade.
Nonetheless, the recovery did not sustain, and major stocks and indices again turned vulnerable at higher levels. The index pared the recovery and fell on the flat line by close of trading session. The weakness was felt across the board with all indices maintaining their previous closing status without showing any directional bias and was largely range-bound.
The benchmark GSE Composite Index (GSE-CI) did not see any change, closing at the same mark as it opened at 2,810.01 points. This led to a week on week loss of 0.3 percent and month on month loss of 6.16 percent, but the YTD remained in the rising wedge formation as it recorded an overall year-to-date gain of 44.73 percent.
In a similar way, the GSE Financial Stocks Index (GSE-FSI) also maintained its value at 2,073.63 points, making it a week on week loss of 0.75 percent, a month on month gain of 0.01 percent, and a year-to-date gain of 16.32 percent.
In all, nine major equities participated in Tuesday’s trading session with all trading flat. This means that the stocks closed as they opened.
MTN Ghana opened and closed its trading day at GH¢1.16 per share on the Ghana Stock. SCB also opened and closed at GHc20.30. (SOGEGH) recorded no change in it’s opening share price of GHc1.18. The stock prices of Cal Bank, SIC and GOIL, remained the GHc0.84, GHc0.8 and GHc1.82 respectively.
Nevertheless, the market displayed some internal strength as the volume and value of traded stocks swelled up considerably.
The top movers included: MTN Ghana, Standard Chartered Bank (SCB), Societe Generale Ghana (SOGEGH) Cal Bank, SIC and GOIL.
Total Volume Traded
At the end of Tuesday’s trading session on the Ghana Stock Exchange (GSE), a total of 1,728,861 shares, corresponding to a market value of GH¢ 2,719,896.76, were traded. Compared with the previous GSE trading day (Monday, December 13), a pattern analysis on Tuesday’s data showed 569 percent improvement in volume and 717 percent improvement in turnover.
MTN Ghana emerged as the volume leader at the close of trading activity. MTN Ghana recorded the highest volume of 1.67 million traded shares. This was followed by Standard Chartered Bank with 37,418 traded shares. Societe Generale Ghana also followed with 14,206 traded shares and CAL Bank with 1,294 traded shares.
The current market capitalization of the Ghana Stock Exchange stands GH¢ 63.9 billion.
Analysts predicted that the market is likely to exhibit a cautious and tentative bias throughout the week. This is likely to limit any upside, if at all it occurs.
It is highly recommended not to be chasing moves while focusing on stocks showing resilience in the current market condition.
We strongly recommend not chasing up-moves, if any, and keeping exposures limited to the defensive sectors, which are showing resilience in the current market condition. While continuing to protect profits at higher levels, a cautious outlook is advised for the day.