GSE recuperates with new gains

The Ghana Stock Exchange (GSE) has bounced back and started the week with new gains as the stock market opened on Monday September 13, 2021.

The benchmark indexes edged up marginally as the volume by trade and value of trade bounced back after closing modestly lower in last trading session on Friday September 10, 2021.

At the end of the first week-day of trading on the Ghana Stock Exchange (GSE), a total of 79,342 shares were traded compared to a total of 22,022 shares traded on the previous trading day, Friday September 10. This represents a 260 percent improvement in volume of shares traded.

Moreover, the gains notched correspond to a market value of GHc265,582.63, representing over 150 percent improvement in market turnover compared to the previous market value which stood at GHc 88,947.63.

Trade by Volume and Value

In the aggregate, ten GSE listed equities participated in trading session compared to four which participated in the previous session.

The trading session on Monday ended with three gainers and no losers. Ecobank Transnational led the gainers list with 14.29 percent share price appreciation closing at GHS 0.08 per share. Meanwhile, Ecobank Transnational opened its with GHS0.07. It was followed by Societe Generale Ghana which secured 3.09 percent share price appreciation. Also, Standard Chartered Bank ended the gainers ’chart with 0.54 percent share price appreciation.

Moreover, GCB Bank also led the trade volumes. It recorded the highest volume traded of 21,651 shares accounting for over 40 percent of the total volume traded. This was followed by Ecobank Transnational which traded 20,350 shares despite leading the trade by volume in the previous trading session. This was followed by MTN Ghana which managed 18,614 and Societe Generale Ghana with total shares traded of 8,839 shares.

However, regarding the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) climbed 10.5 points, representing 0.37 percent to close at 2,810.86 points. Compared to Composite Index recorded in the previous trading session on Friday. This represents a 1-week gain of 1.88 percent, a 4-week gain of 2.36 percent, and an overall year-to-date gain of 44.77 percent.

It should however be noted that the calculation of the GSE Composite Index is based on the volume weighted average closing price of all listed stocks.

Financial Index

Likewise, the GSE Financial Stocks Index (GSE-FSI) which constitutes only listed stocks from the financial sector including banking and insurance sector stocks also increased by 0.97 percent to reach 1,978.26 points, making it a 1-week gain of 2.5 percent, a 4-week gain of 3.58 percent, and a year-to-date gain of 10.97 percent.

Furthermore, the market capitalization of the Ghana Stock Exchange, which captures the total market value of all outstanding shares, and, determines the worth of various companies listed on the local bourse, rose from GHS 63.4 billions to settle at GHS63.7 billion.

Despite the pickup in both trade by volume and trade value, the indices still remain below those recorded in the previous weeks.

Analysts hold that the demand for bargain stocks, that is shares trading at a lower price than a company’s intrinsic value or performance, remain a contributing factor to the gradual pickup in market performance.