The Mobile Telecommunication giant, MTN Ghana (MTNGH) has lost more than 9% of its value on Thursday, September 23, while major market indices also plunged.
MTNGH closed its last trading day (Thursday, September 23, 2021) at GH¢1.12 per share on the Ghana Stock Exchange (GSE), recording a 9.7 percent drop from its previous closing price of GH¢1.24. This represents a whooping lost of GH¢0.12 of MTNGH value.
Meanwhile, MTNGH began the year with a share price of GH¢0.64 and has since gained 75 percent on that price valuation, ranking it fourth on the GSE in terms of year-to-date performance. Investors would, however, be concerned about MTNGH’s recent bad performance, having lost 10 percent of its value in the past four weeks.
However, MTN Ghana remains the number one most traded stock on the Ghana Stock Exchange over the past three months (Jun 24 – Sep 23, 2021). MTNGH has traded a total volume of 48.9 million shares valued at GH¢ 60.5 million over the period, with an average of 776,712 traded shares per trading session. Since the turn of the year, a volume high of 5.61 million was achieved on August 17, and a low of 1,330 on September 17, for the same period.
Similarly, with regard to the performance of Ghana Stock Exchange market indices, the benchmark GSE Composite Index (GSE-CI) also plummeted 138.59 points, representing a decline of 4.92 percent to close at 2,675.79 points. As a result, the fall in the market index translated into a 1-week loss of 4.04 percent, a 4-week loss of 2.33 percent, but an overall year-to-date gain of 37.81 percent.
GSE Financial Index
Nonetheless, the GSE Financial Stocks Index (GSE-FSI) maintained its value at 2,008.40 points, making it a 1-week gain of 1.41 percent, a 4-week gain of 4.96 percent, and a year-to-date gain of 12.66 percent.
In the aggregate, seven Ghana Stock Exchange equities participated in Thursday’s trading, ending with only one gainer, namely Fan Milk, with 9.13 percent share price appreciation and also one loser, namely MTN Ghana (-9.7%).
Moreover, in last trading session, Fan Milk recorded the highest volume of 210,000 traded shares, followed by MTN Ghana (4,047), Ecobank Transnational (2,384) and GCB Bank (2,207).
Meanwhile, at the end of Thursday’s trading session on the Ghana Stock Exchange (GSE), a total of 219,868 shares, corresponding to a market value of GH¢ 545,646.68, were traded. Compared with the previous GSE trading day (Wednesday, September 22), Thursday’s data show 23 percent decline in volume but 33 percent improvement in turnover.
Market Capitalization
The market capitalization of the Ghana Stock Exchange also dipped by over GH¢400 million. The current market capitalization is GH¢62.3 billion. In the previous session, it stood at GH¢62.7 billion.
All in all, experts expect the market to pick up on the expiry day of the week which also happens to be the last trading day of this week. In addition, analysts also recommend avoiding shorts as there are no definite signs of weakness on the charts. In fact, rebounding from lower levels each time there is some short-lived decline.
However, in the same breadth, experts advise that prospective investors avoid aggressive purchases.
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