Stock market analysts have posited that the positive performance of the Ghana Stock Exchange’s Composite Index is an indication of a rebound in investor appetite for the stock market.
The equities market have recorded impressive gains following the successful organization of the 2020 presidential and parliamentary elections and re-election of President Akufo-Addo.
Analysts however, say they are cautiously optimistic about the positive results of the stock market going forward in terms of consistent positive performance.
Speaking to the media, Alex Boahen, Head of Research at Databank said, “the story so far for this year is that typically people buy shares but you don’t see that reflect in the share price. But since last week, that has changed as we saw significant jump in market turnover and increase in composite index in week-on-week basis and it’s good because it tells that investors appetite is increasing which is good, but does it mean that the much anticipated rebound of the GSE has started? For now I think it’s too early to say because we will have to wait for it to perform this well to at least the end of the year, to make meaning out of it.”
Meanwhile, trading activities on the GSE on Monday ended with four equities on the bourse partaking in trade and it ended with a sole gainer with none on the flip side of the market.
MTN Ghana added a pesewa (+1.64%) to investors’ capital to end the day with its share quote at Ghs 0.61.
MTN Ghana also dominated trading activity as 13,168,500 shares were traded at Ghs 8,164,469.
This saw total volume at week open go up 154% and total value declined by 82% comparing it to Friday’s trading activity.
The GSE market capitalization also surged up by 0.23% on the previous value of Ghs 53,458.73 to seal the day at Ghs 53,581.63.
The GSE Composite Index added 11.74 points (0.63%) to its opening level to close the day at 1,866.06.
It records a week-to-date return of +2.52% and gone up by 2.43% in the last 4 weeks. The year-to-date decline closed the day at 17.33%.
The GSE Financial Stock Index on the other hand maintained its level at 1,678.22 points, though its performance in the last week represents a return of +3.24%, it registers a year-to-date return of -16.91%.
