Building on the strong up-move in last two sessions, the Ghana Stock Exchange (GSE) started its trading day on strong footing, knocking out impediments such as: inflation and depreciation, on its way. Few hours into the session, unexpected news of Parliament passing the proposed E-levy broke out. With barely three 3 hours to end the trading session, panic waves hit the stock market, disrupting the telecommunication sector stocks.
The development forced investors to balk momentarily. The market followed suit as it subsequently recoiled with speed. Investors, particularly those in the telecommunication sector rushed to sell their stocks with reluctant buyers taking a backstage. As a result, market activity skyrocketed to a historic new high with MTN Ghana at the centre of the activity.
At the end of Tuesday’s trading session on the Ghana Stock Exchange (GSE), a total of 81,412,413 shares, corresponding to a market value of GHS 86,387,163.20, were traded.
MTN Ghana led the table of top movers. The telecommunication giant recorded the highest volume of 81.4 million traded shares. This was followed by Enterprise Group with 41,301 traded shares. Meanwhile, Produce Buying Company (PBC) also managed to get on the list with 2,100 traded shares. CAL Bank also secured to gain 1,320 of traded shares.
According to experts, along with stock price action, trading volume can be one of the most significant technical parameters to determine where a stock may be heading. In this case, many investors are under sell off pressure, which is as a result of the e-levy news causing a negative sentiment.
The Market Traded Flat
However, the market ended on a flat note with no new gainers. In all, 10 GSE listed equities participated in trading which was dominated by MTN Ghana. MTNGH closed its trading day (Tuesday, March 29, 2022) at GHS1.06 per share on the Ghana Stock Exchange. MTN began the year with a share price of GHS1.11 but has since lost 4.5 per cent off that price valuation, ranking it 33rd on the GSE in terms of year-to-date performance.
In the intervening time, MTN Ghana maintained its position as the most traded stock on the Ghana Stock Exchange over the past three months (Dec 24, 2021 – Mar 29, 2022). MTNGH has traded a total volume of 253 million shares valued at GHS 270 million over the period, with an average of 4.01 million traded shares per session. A volume high of 81.4 million was achieved on March 29, and a low of 1,032 traded shares on February 4, for the same period.
Performance of Indices
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 2,742.85 points, representing a week on week gain of 0.13 per cent. This also translated to a month on month gain of 1.72 per cent, but an overall year-to-date loss of 1.67 per cent.
Similarly, the GSE Financial Stocks Index (GSE-FSI) maintained its value at 2,174.96 points, making it a 1-week gain of 0.29 per cent, a 4-week gain of 2.64 per cent, and a year-to-date gain of 1.07 per cent.
However, now that the much talked about electronic levy is passed, experts predicted that there will be a torrid time ahead for the telecommunication giant- MTN Ghana stocks.
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Beautiful article. But they are happy to pass it. Me I stop using momo oo. Nana Addo disappointed me paa