The Ghanaian equity market failed to put its internal strength on display on Tuesday, April 15, as it consolidated and ended on a flat note, albeit on a reduced activity.
The Ghana Stock Exchange (GSE) market saw a quiet opening on the expected lines and traded flat in a narrow range in the first half of Tuesday’s trading session. The blue chip stocks stayed range-bound, and showed no directional bias till the market closed.
According to market report, eleven (11) GSE equities participated in trading. All the major blue chip stocks that participated in Tuesday’s trading session closed without a gain or a loss. Not only that, but also, the market displayed weak movement as volume traded and value of stocks declined considerably.
At the end of Tuesday’s trading session on the Ghana Stock Exchange (GSE), a total of 547,059 shares, corresponding to a market value of GHS 447,010.77, changed hands. Compared with the previous GSE trading day (Monday, April 11), Tuesday’s data showed 55 per cent decline in volume and 58 per cent decline in turnover.
Despite the major stocks trading flat, the banking sector and telecommunication stocks led the market. Cal Bank Ghana emerged as the top movers on the local stock market as it recorded the highest volume of shares traded.
Cal Bank Ghana closed the session as a leader with the highest volume of 500,024 traded shares. This was followed by SIC Insurance Company PLC Ghana. It recorded 31, 559 traded shares whereas, Ecobank Transnational Incorporated (ETI) also recorded 8,670 traded shares. Moreover, MTN Ghana also entered the fray with 4,562 traded shares.
Benchmark Composite Indices
With regards to the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) did not also see any change, closing at the same mark as it opened at 2,697.35 points. This resulted in a week on week gain of 0.42 per cent. However, on a month on month basis, the composite index recorded a 4-week loss of 1.52 per cent, and an overall year-to-date loss of 3.3 per cent.
In a similar vein, the GSE Financial Stocks Index (GSE-FSI) also maintained its value at 2,220.89 points, making it a week on week gain of 1.08 percent, a 4-week gain of 2.45 per cent, and a year-to-date gain of 3.21 per cent.
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 GHS 64 billion.
Some strategists see the market heading into a volatile period in which there could be a deeper pullback.
However, other analysts also predict that there is going to be a rebound in stock prices as the week draws to a close, coupled with an improvement in investor confidence.
On the surface, while it may seem like the stock market is going nowhere for days, it may be quietly winding itself up for a big climb.