GSE: Benchmark indices record no change as market capitalization remains at GHS 67.9bn
The Ghana Stock Exchange (GSE) experienced a relatively uneventful trading session on Monday, with no changes recorded in the benchmark index, the GSE-Composite Index, which closed at 2,710.06 points. The index has experienced a 10.89% year-to-date change, indicating a slight dip in performance compared to the same period last year. Meanwhile, the GSE Financial Stocks Index also remained unchanged, closing at 1,722.74 points, representing a year-to-date return of -16.07%.
Despite the lack of movement in the indices, the market activity was on the rise, with a notable 8.26% increase in volume traded and a 57.36% increase in value traded. A total of 4,925,835 shares valued at GH¢10,865,643.06 were traded across seventeen (17) equities. Leading the trading chart was Guinness Ghana Breweries PLC. (GGBL), which traded 2,815,067 shares valued at GH¢4,222,600.50, representing 38.86% of the total value traded. GCB Bank PLC. (GCB) followed closely with 2,067,120 shares traded, valued at GH¢6,594,112.80, representing 60.69% of the total value traded.
The absence of gainers and decliners in the market indicates a relatively stable state of affairs, which is good news for investors seeking some measure of stability in the market. The Market Capitalization remained unchanged, ending the day at GH¢67.95 billion. This is a welcome respite for investors who have experienced a fair share of volatility in the Ghanaian stock market in recent times.
While the market remained relatively stable on Monday, it is important to note that the country’s stock market is still feeling the effects of the COVID-19 pandemic, which has disrupted businesses and economies around the world. It is not surprising that the GSE Financial Stocks Index has recorded a year-to-date return of -16.07%. This can be attributed to the challenges that financial institutions have faced in the wake of the pandemic, including the increased risk of loan defaults, low interest rates, and a decline in customer deposits.
Nevertheless, there is optimism in the market, with many investors hopeful that the ongoing vaccination drive in the country and the government’s fiscal policies aimed at boosting economic growth will help to drive the recovery of the stock market. Additionally, the continued growth of the country’s oil and gas industry presents a promising opportunity for investors looking to diversify their portfolios.
Looking ahead, it remains to be seen how the market will perform in the coming days and weeks. However, with the increasing volume and value of shares traded, there is reason to believe that the market is slowly but surely recovering from the effects of the pandemic. Investors are advised to keep a close eye on market developments and make informed investment decisions based on their risk appetite and financial goals.
