Ghana Stock Exchange dips as MTN leads trading losses
On Tuesday, the Ghana Stock Exchange experienced a bearish session, with the benchmark index, GSE-Composite Index, dropping 70.66 points to close at 2,687.76 points, representing a 9.98% year-to-date change. However, the GSE Financial Stocks Index remained unchanged, closing the day at 1,806.67 points, representing a year-to-date return of -11.98%.
The lack of gainers on the trading day was notable, with Scancom PLC (MTNGH) losing GH¢0.06 to close at GH¢1.20. As a result, the market capitalization declined by GH¢737.43 million to end the trading session at GH¢67.22 billion.
Despite the market’s downturn, market activity did recover from the previous day’s declines, with a staggering 6269.40% rise in volume traded and a 4326.69% increase in value traded. The total shares traded were 3,510,493, valued at GH¢4,216,582.81, across eleven (11) equities.
Scancom PLC (MTNGH) emerged as the top trading entity, with 3,505,303 shares valued at GH¢4,206,787.78, representing 99.77% of the total value traded. This was followed by Cal Bank PLC (CAL), trading 2,935 shares valued at GH¢1,467.50, representing 0.13% of the total value traded.
The negative sentiment in the Ghana Stock Exchange can be attributed to a number of factors, including macroeconomic conditions and company-specific factors. The ongoing COVID-19 pandemic has led to uncertainty and volatility in the markets, with investors treading carefully to avoid significant losses. Furthermore, the low trading volumes may indicate a lack of investor confidence, as traders appear to be holding onto their investments in anticipation of better market conditions.
The impact of Scancom PLC’s loss cannot be overlooked, as the entity accounted for nearly 100% of the total value traded. The telecoms company has been experiencing a turbulent period, with its stock price experiencing significant fluctuations in recent months. The company’s financial results for the year 2022 may provide clarity on the future direction of its stock price.
The Ghana Stock Exchange experienced a bearish trading day, with the benchmark index, GSE-Composite Index, losing significant ground. The lack of gainers on the day was notable, with Scancom PLC (MTNGH) emerging as the top trading entity. While the reasons for the negative sentiment in the market are multifaceted, investors will be watching the market closely for signs of improvement in the coming days and weeks.
