Ecobank and FanMilk experience losses on GSE
The Ghana Stock Exchange (GSE) faced a challenging trading session with both the GSE-Composite Index and the GSE Financial Stocks Index experiencing losses. The GSE-Composite Index dropped by 20.15 points to close at 2,387.88 points, reflecting a -2.29% year-to-date (YTD) change, while the GSE Financial Stocks Index declined by 32.47 points to close at 1,914.10 points, representing a YTD return of -6.75%.
Investors were disappointed to see no gainers during today’s trading session, with both Ecobank Ghana PLC (EGH) and FanMilk PLC (FML) experiencing losses. EGH lost GH¢0.58 while FML declined GH¢0.20, with both closing at GH¢5.40 and GH¢1.87, respectively. The negative performance of the stocks in the GSE-Composite Index led to a decline in the market capitalization of GH¢210.32 million, ending the trading day at GH¢64.03 billion, representing a YTD change of -0.75%.
The volume of shares traded during the session experienced a decline of 69.28%, with only 27,318 shares valued at GH¢30,733.82 traded across eighteen (18) counters. This represents a substantial drop in the total value traded, which fell by 99.77% compared to the previous trading session.
Despite the bleak trading session, some stocks managed to attract significant trading activity. Transactions in Scancom PLC (MTNGH) topped the trading chart, with 10,933 shares valued at GH¢10,058.36, representing 37.55% of the total value traded. Following closely behind was CalBank PLC (CAL), which traded 10,713 shares valued at GH¢5,463.63, representing 17.78% of the total traded value.
The negative performance of the GSE may have been influenced by several factors, including the ongoing COVID-19 pandemic, which has had a significant impact on global economies and financial markets. The sluggish economic recovery, coupled with political uncertainties in the region, may also have contributed to the decline in investor confidence.
As the GSE continues to navigate these challenging times, it is important to note that the long-term prospects of the Ghanaian economy remain positive, with opportunities for growth in several sectors such as agriculture, mining, and technology. Despite the current setbacks, investors should continue to monitor developments in the market, while remaining focused on long-term investment strategies.
