E-Levy fuels share price decline of MTNGh stocks on the local bourse
Stocks of MTNGh continues to decline in price as a result of the negative sentiments expressed by the traders with regards to the 1.75% E-levy on MoMo transactions as proposed in the 2022 Budget and Economic Policy of the Government.
The share price of MTNGh at the end of trading on Tuesday fell by 4 pesewas as it posted a closing share price of Ghs 1.20 pesewas from a share opening price of Ghs 1.24 pesewas representing a 3.23% fall in share price for the day.
On the previous day – Monday – the share price of MTNGh fell by 1 pesewa.
The price loss recorded by MTNGh dragged the benchmark GSE Composite Index down by 46.97 points to close trading at 2,860.13 points with a YTD return of 47.31%.
Thus the market capitalization of the stock exchange on the back of the decline in the equity price of MTNGh subsequently reduced by GH¢491.62 million to close at GH¢64.22 billion representing a growth of 18.12% in 2021.
DECLINER
| Ticker | Close Price (GH¢) | Open Price (GH¢) | Change | YTD Change |
| MTNGH | 1.20 | 1.24 | -3.23% | 87.50% |
Despite the decline in share price, MTNGh still recorded the lion’s share of trades, accounting for 97.7% and 99.0% of the total value and total volume traded respectively.
In all, a total of 3,275,977 shares valued at GH¢3,972,663.15 was traded in five (5) equities also marking a decline in trade turnover as compared to Monday’s volume of 4,104,202 valued at GH¢5,614,603.65.
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TOP TRADED EQUITIES
| Ticker | Volume | Value (GH¢) |
| MTNGH | 3,244,125 | 3,892,969.59 |
| EGL | 30,702 | 77,676.06 |
| RBGH | 1,000 | 600.00 |
| FML | 100 | 400.00 |
| SCB | 50 | 1,017.50 |
The E-Levy as noted by the Finance Minister in the presentation of the 2022 budget, is occasioned by the surge in digital transactions as a result of the Covid-19 pandemic and the need to widen the tax net and rope in the informal sector.
According to the Minister, data from the Bank of Ghana indicate that between February 2020 and February 2021 alone, Ghana saw an increase of over 120% in the value of digital transactions compared to 44% for the period February 2019 – February 2020.
Total value of digital transactions for 2020, the Minister further noted, is estimated to be over GHS 500 billion Cedis compared to GH¢78 billion Cedis in 2016.
The E-levy, the Minister noted, will cover mobile money payments, bank transfers, merchant payments and inward remittances at an applicable charge rate of 1.75%.
Read details of the daily equity report by SIC Brokerage below:
Daily Equity Market Report_23.11.2021 by Fuaad Dodoo on Scribd
