Financial sector woes continue as GSE-Financial Stocks Index records negative year-to-date performance
The Ghana Stock Exchange (GSE) witnessed a week of mixed fortunes as the GSE-Composite Index recorded gains of 0.48%, while the GSE-Financial Stocks Index remained unchanged. The year-to-date performance of the GSE-Composite Index stood at 12.87%, pointing to a positive trend, while the GSE-Financial Stocks Index recorded a year-to-date performance of -11.98%, indicating a negative trend.
Market capitalization rose slightly by 0.16% from the previous week to close at GH¢67.96 billion. The week saw a total of 24 equities traded, with some companies recording gains and others experiencing losses. Among the gainers were BOPP and MTNGH, which recorded gains of GH¢1.16 and GH¢0.01, respectively. However, FML and GLD were not as fortunate, as they recorded losses of GH¢0.23 and GH¢9.73, respectively.
The volume of shares traded during the week was 362,899.00, representing a significant decline of 87.94% compared to the previous week. The total trade turnover was GH¢698,750.57, indicating a 90.15% decrease in trade turnover over the week. Despite this decline, MTNGH traded the most volumes, valued at GH¢304,152.66, which represented 43.53% of the week’s traded value.
The overall performance of the GSE suggests that the market remains subdued, with few signs of any significant positive momentum. The GSE-Financial Stocks Index, in particular, has struggled to gain any traction, recording a year-to-date performance of -11.98%. This negative trend is indicative of the challenging operating environment in the financial sector, which has been impacted by the Covid-19 pandemic and the resulting economic fallout.
Nonetheless, some companies have managed to buck the trend and record gains, such as BOPP and MTNGH, which recorded gains of GH¢1.16 and GH¢0.01, respectively. Such performances are indicative of the resilience and adaptability of these companies, which have been able to navigate the challenging business environment.
Looking ahead, it is hoped that the Ghanaian economy will recover from the impact of the pandemic, leading to a more positive outlook for the stock market. In the meantime, investors will continue to monitor the performance of individual companies and the broader market to identify potential opportunities for growth and profit.
