- GSE Ends Week With Six Gainers but Turnover Remains Concentrated
Trading activity on the Ghana Stock Exchange fell sharply on October 2 as turnover declined to GH¢4.40mn, with MTN Ghana accounting for more than four-fifths of the session’s value despite an improvement in overall market breadth.
Total volume dropped to 1.03mn shares from 3.03mn shares in the preceding session, representing a decline of about 66 per cent. The value traded fell more steeply, decreasing 76.58 per cent from GH¢18.81m.
The decline reflected the absence of the large transactions that had shaped earlier sessions. It also reinforced a persistent feature of the Ghanaian equity market: daily liquidity can change dramatically depending on trading in one or two large counters.
Six equities advanced during the session, compared with two decliners. However, most of the market remained unchanged, suggesting that the improvement in breadth did not amount to a broad surge in investor demand.
MTN Ghana remained the market’s most active stock, generating GH¢3.68mn from 565,532 shares. The telecommunications company accounted for approximately 83.4 per cent of total market value and 54.7 per cent of volume.
Its share price edged one pesewa higher from GH¢6.49 to GH¢6.50, an increase of 0.15 per cent.
Although the price movement was modest, MTN’s weight in market activity remained considerable. Excluding the stock, the rest of the market generated only about GH¢729,000 in turnover.
The concentration means that aggregate figures continue to provide an incomplete picture of liquidity across the wider exchange. A market may record millions of cedis in turnover while most listed securities attract limited or no trading.
SIC Insurance was one of the session’s strongest performers, rising GH¢0.31, or 7.16 per cent, to GH¢4.64.
The rebound followed a steep decline in the preceding session, when the stock fell from GH¢4.80 to GH¢4.33. Despite the recovery, SIC remained below its September 30 closing level of GH¢4.80.
The pattern suggests a correction after the previous session’s selling pressure rather than an unambiguous change in investor sentiment. A relatively small number of transactions can generate pronounced percentage movements in stocks where market depth is limited.
Societe Generale Ghana also recovered, advancing 2 per cent from GH¢5.00 to GH¢5.10. The gain followed recent weakness in the bank’s shares amid developments surrounding the proposed sale of Societe Generale Group’s Ghanaian subsidiary to Morocco’s Attijariwafa Bank.
CalBank gained one pesewa to close at GH¢0.72, while Cocoa Processing Company increased 7.14 per cent from GH¢0.28 to a new annual high of GH¢0.30.
Cocoa Processing recorded 97,000 shares valued at GH¢29,100. Its movement illustrates how low-priced equities can produce large percentage gains from relatively small absolute changes.
Digicut Production and Advertising was the strongest percentage gainer, climbing 8.51 per cent from GH¢0.47 to GH¢0.51.
The closing price established a new year high for the company. A total of 63,859 shares changed hands at a value of GH¢32,288.
The rally extended Digicut’s sharp year-to-date appreciation, but its relatively small turnover calls for caution when interpreting the price movement. Thinly traded equities can rise rapidly when fresh demand encounters a limited supply of shares.
The broader question is whether such gains can be sustained once investors attempt to execute larger transactions. Price appreciation without sufficient market depth can leave investors facing difficulties when entering or exiting positions. Intravenous Infusions was the session’s largest decliner, falling 7.55 per cent from GH¢0.53 to GH¢0.49.
The company recorded 10,335 shares valued at GH¢5,075. Despite the decline, the stock remained substantially above its year low of GH¢0.05.
Ecobank Transnational Incorporated slipped one pesewa to GH¢1.60, a decline of 0.62 per cent. The stock generated 39,958 shares valued at GH¢64,084.
Other financial stocks were largely unchanged. GCB Bank remained at GH¢40, Ecobank Ghana closed at GH¢39, Republic Bank Ghana held at GH¢4 and Standard Chartered Bank Ghana ended at GH¢69.89.
The mixed performance followed weakness in the financial segment during the week, with selling pressure in ETI and some domestic banking and insurance counters weighing on the sector.
Kasapreko was the second-most actively traded equity by value, recording GH¢155,140 from 84,138 shares. Its price remained unchanged at GH¢1.84.
CalBank followed with GH¢83,481 in turnover, while GOIL recorded GH¢78,680 and SIC generated GH¢72,927.
Together, these figures show the considerable gap between MTN and the remainder of the market. The five most active equities after MTN collectively generated less than GH¢500,000.
Total ordinary-share turnover stood at GH¢4.36m from 954,804 shares. Trading on the Ghana Alternative Market added GH¢40,304, while the NewGold exchange-traded fund recorded only six units valued at GH¢2,774.
The October 2 session completed a week in which the benchmark market advanced but liquidity weakened. MTN Ghana supported the wider market and dominated turnover, while gains in several smaller equities improved the headline breadth.
Yet the session’s underlying message was more restrained. Investor activity remained narrowly distributed, most listed companies recorded no price movement, and turnover depended heavily on one telecommunications counter.
The immediate outlook will hinge on whether participation broadens beyond MTN and a small group of speculative or low-priced equities. Without that expansion, headline gains may continue to coexist with shallow liquidity across much of the exchange.
