The Ghana Stock Exchange (GSE) started falling again on Monday, October 11, after picking up on the last day of first week’s trading session, while Fan Milk Ghana Limited (FML) stocks also hewed from recent highs into the red zone.
According to the market report, the Ghana Stock Exchange traded mix with two gainers and one loser namely, Fan Milk Ghana Limited. FML lost 1.6 percent of its share price on last trading session.
FML closed its last trading day (Monday, October 11, 2021) at GHS5.00 per share on the Ghana Stock Exchange (GSE), recording a 1.6% drop from its previous closing price of GHS5.08. Fan Milk began the year with a share price of GHS1.08 and has since gained 363% on that price valuation, ranking it first on the GSE in terms of year-to-date performance.
However, an expert and a financial analyst, Mrs Annor-Sika Asantewah, speaking to the Vaultz news on recent volatility in the market, explained that, when stocks fall from recent highs, it means they’re trading at a discount and will likely rebound at some point, which sets investors up for larger returns.
“Continuing to put money in the market when it’s down as opposed to selling is a great way to make sure you don’t miss out on a rebound.”Annor-Sika
While volatility can be troubling for investors, Mrs Annor-Sika cautioned investors against any hasty selling when markets fall. In addition, she noted that slumping stock prices can be a prime buying opportunity that investors should take advantage of.
“This means investors should stay calm even through extreme movements. As stocks have gyrated in recent months, long-term market returns are still based on the same things”.Annor-Sika
On the other hand, GSE recorded two gains namely Benso Oil Palm Plantation (BOPP) and Republic Bank Ghana (RBGH). BOPP closed its first trading day (Monday, October 11, 2021) at GHS3.79 per share on the Ghana Stock Exchange (GSE), recording a 9.86% gain over its previous closing price of GHS3.45.
Similarly, Republic Bank Ghana (RBGH) also closed its first trading day at GHS0.47 per share on the Ghana Stock Exchange (GSE), recording a 9.3% gain over its last closing price of GHS0.43. RBGH began the year with a share price of GHS0.41 and has since gained 14.6% on that price valuation, ranking it 10th on the GSE in terms of year-to-date performance.
However, the gains in equities such as Benso Oil Palm Plantation (+9.86%) and Republic Bank Ghana (+9.3%), were not enough on the day to prevent the GSE from plummeting. Compared with the previous GSE trading day of the week (Friday, October 8), Monday’s data show 46% decline in volume and 42% decline in turnover.
At the end of the first weekday of trading on the Ghana Stock Exchange (GSE), a total of 677,184 shares, corresponding to a market value of GHS 858,982.46, were traded.
MTN Ghana recorded the highest volume of 595,180 traded shares, followed by Ecobank Transnational (46,980), Ghana Oil Company (12,340) and Fan Milk (5,378).
Regarding the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) marginally inched up by 0.12% points to close at 2,872.21 points, representing a 1-week gain of 0.19%, a 4-week gain of 2.57%, and an overall year-to-date gain of 47.93%.
The GSE Financial Stocks Index (GSE-FSI) also increased by 0.29% to reach 2,058.22 points, making it a 1-week gain of 0.15%, a 4-week gain of 5.06%, and a year-to-date gain of 15.45%.
The current market capitalization of the Ghana Stock Exchange is GHS 64.3 billion.
Moreover, according to Annor-Sika, inflation continues to be a major point of concern for many market participants, while a number of other major, related factors are also central to the Ghana Stock market at the moment.
“I think if I had to distill the market to three key themes right now, it would be momentum or trend, volatility, and valuation, with inflation the driving force.”Annor-Sika
However, the analyst expects the market activity to pick up strongly in the coming days.