- Financial Stocks Retreat as MTN Ghana Dominates October 20 Trading on GSE
Trading activity on the Ghana Stock Exchange rebounded on October 20, but the improvement in liquidity was accompanied by weak market breadth and renewed pressure on several financial and energy stocks.
The official list showed that 1.64 million shares changed hands for GH¢8.41 million, compared with 724,606 shares valued at GH¢2.69 million on October 16, the preceding trading session available for comparison.
Total volume therefore increased by 125.8 per cent, while turnover value rose by 212.8 per cent. The stronger rise indicates that trading shifted towards higher-priced or more valuable securities rather than merely reflecting a general increase in transactions.
That improvement, however, was overwhelmingly dependent on Scancom PLC, which trades as MTN Ghana. The telecommunications company recorded 1.09 million shares worth GH¢7.08 million, accounting for 66.4 per cent of total market volume and 84.2 per cent of value.
MTN Ghana’s volume increased by 483.6 per cent from 186,044 shares on October 16, while the value of its trades rose by 465.5 per cent from GH¢1.25 million.
The stock gained GH¢0.02 during the October 20 session to close at GH¢6.52, representing a daily appreciation of 0.31 per cent. However, it remained below its GH¢6.73 closing level on October 16, showing that the increase in activity did not fully reverse price weakness recorded between the two sessions.
MTN Ghana’s dominance created an important distinction between headline liquidity and market-wide participation. Ordinary-share turnover reached 1.55 million shares valued at GH¢8.36 million, meaning MTN Ghana represented 70.2 per cent of ordinary-share volume and 84.7 per cent of its value.
Once the telecommunications counter is removed, the rest of the market generated only about GH¢1.28 million in value. The session was therefore active in aggregate but remained relatively shallow across most listed companies.
Kasapreko ranked a distant second by volume, with 131,108 shares valued at GH¢246,559.52. The beverage producer closed unchanged at GH¢1.88 despite the sizeable transaction flow, suggesting that buyers and sellers found equilibrium around its prevailing market price.
Ecobank Transnational Incorporated followed with 110,367 shares worth GH¢168,491.47, also closing unchanged at GH¢1.53. CalBank recorded 102,523 shares valued at GH¢74,260.10 and held steady at GH¢0.73.
These volumes indicate that investor activity extended beyond MTN Ghana, but the absence of price movement in several actively traded counters suggests that liquidity did not translate into broad upward momentum.
Market breadth was negative. Five equities declined against three gainers, while most listed securities finished unchanged or recorded no trades. That balance points to selective buying rather than a generalised risk-on session.
Meridian-Marshalls Holdings posted the largest percentage gain, rising GH¢0.01 to GH¢0.14, an increase of 7.69 per cent. Yet only 2,000 shares changed hands, limiting the broader significance of the move.
SIC Insurance gained GH¢0.09, or 1.88 per cent, to GH¢4.89 on 27,117 shares valued at GH¢133,577.20. Together with MTN Ghana, it provided some resistance to the decline in other major financial counters.
GCB Bank recorded the largest absolute loss, falling GH¢0.87 to GH¢40.00. The 2.13 per cent decline occurred on 4,057 shares worth GH¢162,411.34 and reversed part of the bank’s recent gains.
Ecobank Ghana also weakened, losing GH¢0.47 to close at GH¢39.53. Its decline of 1.18 per cent came on 6,203 shares valued at GH¢245,909, giving the movement greater weight than price changes occurring on negligible volumes.
The contrasting performance of GCB Bank and Ecobank Ghana against the gain in SIC Insurance produced a mixed picture for financial stocks. Investors appeared willing to trade the sector but were increasingly discriminating among individual institutions.
Ghana Oil Company fell GH¢0.26, or 4.33 per cent, to GH¢5.74. The decline reversed part of its GH¢0.50 advance on October 16, when it had closed at GH¢6.00.
That reversal illustrates the volatility that can develop in counters with relatively thin order books. GOIL’s October 20 decline occurred on only 7,463 shares, demonstrating how modest trading volumes can generate visible price movements when available bids and offers are limited.
Dannex Ayrton Starwin slipped GH¢0.01 to GH¢0.96 on 58,353 shares. Digicut Production and Advertising continued its decline, losing GH¢0.02 to close at GH¢0.47 after falling GH¢0.04 in the October 16 session.
Digicut has consequently lost GH¢0.06 across the two comparison sessions, equivalent to approximately 11.3 per cent of its GH¢0.53 reference level before those declines. Its persistent weakness contrasts with improving activity elsewhere on the market.
No trades were recorded in the AngloGold Ashanti depositary shares, Standard Chartered preference shares or the NewGold exchange-traded fund. Their inactivity underlines the narrowness of the session and the limited contribution of non-ordinary instruments to market liquidity.
The Ghana Alternative Market generated 89,968 shares worth GH¢49,723.21. Intravenous Infusions accounted for most of that value, trading 53,929 shares for GH¢31,365.50 while closing unchanged at GH¢0.59.
For investors, the October 20 session contains two messages. Liquidity improved substantially after the quieter October 16 session, demonstrating that significant orders can still pass through the market when demand and supply align.
But the dependence on MTN Ghana and the negative breadth show that higher turnover should not be confused with broad confidence. A healthy market rally normally combines rising activity with gains across several liquid counters and sectors.
October 20 delivered the activity, but not the breadth. The next test is whether liquidity spreads beyond one dominant telecommunications stock and whether financial, consumer and energy counters can attract sustained buying at firmer prices.
