Equities market struggles amid macroeconomic challenges
The Ghana Stock Exchange (GSE) saw a lacklustre trading day on Wednesday, February 22, 2023, with the benchmark GSE-Composite Index closing at 2,412.20 points – no change from the previous session. The index has registered a year-to-date (YTD) change of -1.30%, reflecting the sluggish performance of the country’s equities market thus far in 2023.
Similarly, the GSE Financial Stocks Index remained unchanged at 1,983.51 points, with a YTD return of -3.37%, underscoring the challenges faced by the financial sector in Ghana. The lack of movement in these indices was reflected in the market capitalisation of the GSE, which ended the trading day unchanged at GH¢64.33 billion, translating to a YTD change of -0.27%.
The trading session was characterised by an absence of both gainers and decliners, further underlining the stagnant nature of the market. However, total volume traded surged by an impressive 1259.99% compared to the previous session, while the total value traded climbed by 527.02% to GH¢181,151.11. These figures indicate that market participants were more active on this day, even if there was no significant movement in the overall market.
The top-traded stock was Scancom PLC (MTNGH), with 156,830 shares valued at GH¢141,787.00, accounting for a significant 78.27% of the total value traded. Meanwhile, SIC Insurance Company Ltd. (SIC) was the second most traded stock, with 17,098 shares valued at GH¢5,300.38, representing 2.93% of the total traded value.
Despite the lack of movement on this particular trading day, it is worth noting that the GSE has been grappling with several headwinds that have hampered its performance in recent months. The country’s high levels of public debt, rising inflation, and ongoing Covid-19 pandemic have all had a negative impact on investor confidence and market sentiment. Nevertheless, with significant natural resources and a growing economy, Ghana remains an attractive investment destination for those with a long-term view.
The GSE saw little change on Wednesday, with the benchmark index and financial stocks index remaining flat, and no significant gainers or decliners in the market. Nevertheless, the surge in trading volumes and values indicates that market participants are still active and engaged, even in a stagnant market. As Ghana continues to navigate various macroeconomic challenges, its equities market may experience further volatility in the near term, but may offer attractive opportunities for those with a longer-term horizon.
