The Ghana Stock Exchange (GSE) trades flat while trading activity dips for the second-time running at the end of last trading session on Friday June 25, 2021.
According to the market report, all the seven major stocks that participated in Friday’s market closed the trading session without a gain or a lost. This means that the stock prices of these equities have neither increased nor decreased.
Moreover, 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 2,643.60 points, representing a 1-week loss of 0.09%, a 4-week gain of 9.19%. The benchmark GSE-Composite index is based on the volume weighted average closing price of all listed stocks. However, Friday’s trading session had an overall year-to-date gain of 36.16% to investors.
Likewise, the Ghana Stock Exchange Financial Stocks Index (GSE-FSI) which constitutes only listed stocks from the financial sector including banking and insurance sector stocks, maintained its value at 1,871.41 points. This means that, compared to the previous trading session on Thursday June 24, 2021, the GSE-FI did not gain or lose any points. Meanwhile, this represents a 1-week loss of 0.61%, a 4-week loss of 1.65%, and a year-to-date gain of 4.97%.
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¢61.32 billion comparing to the previous trading session.
Analysts hold that the market cap is simple and effective tool for risk assessment and as such can be helpful to investors in determining which stocks to purchase and ways to diversify various portfolio with companies of different size.
Additionally, trading activity declined considerably for the second-time running as a total of 205,634 shares changed hands, corresponding to a market value of GHc 119,452.35. Compared with the previous GSE trading day (Thursday, June 24), the volume of shares traded by close of market was 380,430 shares. Friday’s data show 46% decline in volume.
Trade by Volume
Despite the decline in stock market performance, the banking sector and Information and Communications Technology (ICT) stocks led the market with Ecobank Transnational recording the highest volume of shares traded taking over from MTN Ghana which led the market in the previous trading session.
Moreover, Ecobank Transnational recorded the highest volume of 160,000 traded shares, followed by MTN Ghana which recorded 21,035 shares. Total Petroleum Ghana and Ghana Oil Company followed with 17,747 shares and 4,500 shares respectively.
However, Analysts predict that there is going to be a rebound in stock market activity as the week begins, coupled with an improvement in investor confidence alongside a compelling market valuation which may drive the demand for stocks across the telecommunication, banking, insurance and oil sectors. Also, as demand for bargain stock increase, experts believe the stock market is likely to pick up this week.