Ghana Stock Exchange sees no movement in indices, market activity declines
The Ghana Stock Exchange (GSE) witnessed a quiet trading day on Thursday, with the benchmark index, GSE-Composite Index, recording no change to close at 2,687.76 points. The GSE Financial Stocks Index also remained unchanged to close the day at 1,806.67 points.
Despite the lack of movement in the indices, the year-to-date (YTD) returns for the GSE Composite Index stood at 9.98%, while the YTD return for the GSE Financial Stocks Index was -11.98%. This indicates a mixed performance for the exchange so far this year.
Market capitalization remained unchanged at GH¢67.22 billion, signaling a cautious sentiment among investors. Moreover, market activity saw a significant decline, with a 97.09% dip in volume traded and a -97.79% fall in value traded. A total of 102,146 shares were traded, valued at GH¢92,998.07, across ten equities.
The lack of movement in the indices and decline in market activity could be attributed to a range of factors, including uncertainties around the pandemic and its impact on the economy, as well as political risks ahead of Ghana’s general elections in 2024. Investors may also be exercising caution in the face of a challenging business environment, as businesses struggle to recover from the effects of the pandemic.
Notably, there were no gainers or decliners on this trading day, indicating a stable market for the equities traded. The top traded equities on the GSE were Scancom PLC and Ecobank Transnational Inc. (ETI), with Scancom PLC recording 66,547 shares valued at GH¢79,856.40, representing 85.87% of the total value traded. This was followed by Ecobank Transnational Inc. (ETI), which traded 21,226 shares, valued at GH¢3,183.90, representing 3.42% of the total value traded.
Overall, the Ghana Stock Exchange is likely to continue facing headwinds in the coming months, as the country battles the impact of the pandemic and navigates political risks ahead of the 2024 elections. However, with cautious investor sentiment and stable trading activity, the exchange may yet weather these challenges and emerge as a resilient player in the West African markets.
