The Ghana Stock Exchange records modest gains to close the week with major indexes producing mixed results after witnessing some setbacks for four straight sessions.
The benchmark GSE-Composite index which is based on the volume weighted average closing price of all listed stocks advanced by1.08% to a new year high of 2,100.92 points with a 13.36% year-to-date return following gains in Information and Communications Technology stocks particularly, MTN Ghana (+2.50%). This new gain, however, follows after this index stayed flat at 2177.43 points with a 12.5% year-to-date return to investors for four consecutive days.
In a similar vein, the market capitalization, which captures the total market value of all outstanding shares on the local bourse increased by 0.43% to settle at GH¢57.15 billion after remaining flat at GH¢56.91 billion for the fourth time running.
Jason Fernando, a Value Investing Specialist reveals that the market cap is used in determining the worth of various companies listed on the stock exchange. Also, it’s a simple and effective for risk assessment and as such can be helpful to investors in deciding which stocks to purchase and ways to diversify various portfolio with companies of different size.
Conversely, the GSE Financial Stock index which constitutes only listed stocks from the financial sector including banking and insurance sector stocks, closed at 1,873.31 remaining unchanged with a 5.08% year-to-date return to investors.
A total of 7,337,137 shares valued at GH¢6,334,814 changed hands this week compared to 1,847,424 shares valued at GH¢1,752,701 last week. MTN Ghana dominated trading activity, accounting for 50.70% of total value traded at a closing price of GH¢0.82.
Information and Communications Technology (ICT) stocks, food and beverages stocks and oil stocks led the market with MTN Ghana, Guinness Ghana Brewery Limited and Ghana Oil company Ltd topping trades by value.
MTN Ghana has appointed the following Independent Non-Executive Directors Mr. Felix Addo, Ms. Nana Ama Botchway, Mr. Kofi Dadzie, Ms. Rosie Ebe-Arthur to its board, effective 1st March 2021.
So far, stocks that have made a strong showing since the start of the year-to-date on the stock exchange include MTN Ghana (28.13%), Societe Generale (14.06%), Stanchart (11.28%), GCB (11.1%) and Repbulic Bank (9.76%), Total (9.54%), Cal (8.70%), Enterprise Ghana (1.43%) and GOIL (0.67%).
On the other hand, the performance of the stocks of Access Bank Ghana Plc, Unilever Ghana Plc, Aluworks, as well as New Gold, an Exchange Tradable Fund (ETF) dipped consideralbly recording negative year-to-date return of -2.05 percent, -9.89 percent and -9.09 percent respectively on the local bourse.
On the Secondary Market securities with medium term maturities accounted for 57%of trades while securities with short maturities accounted for 22% of trades. There has been consistent oversubscription for Government Treasury bills from the beginning of the year with most investors patronizing bills maturing in 91 days.
This however, can be as a result of a flight to safety by most investors due to the volatility in the market currently owing to the resurgence of the pandemic which appears to be more delicate. More so, non-resident investors may want to purchase our financial instruments as rates look attractive on our financial markets with the cedi also remaining stable for some time now.