- GSE Rebounds as MTN Ghana and GOIL Gains Lift Market, But Turnover Falls 92%
The Ghana Stock Exchange returned to positive territory on October 8, supported by gains in MTN Ghana, GOIL and selected financial counters, although a sharp fall in trading activity and continued weakness in several banking stocks showed that investor confidence remained uneven.
The GSE Composite Index gained 63.48 points, lifting its year-to-date return to 59.91 per cent. The advance partly reversed the pressure recorded in the previous session, when heavy selling in MTN Ghana weighed on the broader market.
The recovery did not extend to the financial segment. The GSE Financial Stocks Index fell by 103.18 points, reducing its year-to-date return to 59.63 per cent.
Market breadth also remained negative. Six equities recorded gains while seven declined, indicating that the increase in the Composite Index was driven by the weight of selected advancing stocks rather than broad-based buying across the market.
GOIL emerged as the session’s best-performing stock, rising by GH¢0.38, or 6.76 per cent, to close at GH¢6.00.
The gain represented a strong reversal from October 7, when the oil marketing company fell by GH¢0.33 to GH¢5.62. GOIL has now moved above its GH¢5.95 closing level on October 6, suggesting that buyers used the previous session’s decline as an entry opportunity.
Enterprise Group advanced by GH¢0.25, or 3.40 per cent, to GH¢7.60, while GCB Bank gained GH¢0.42, equivalent to 1.06 per cent, to settle at GH¢40.18.
Societe Generale Ghana recovered from its GH¢0.05 decline in the previous session, closing GH¢0.05 higher at GH¢5.10.
On the Ghana Alternative Market, Digicut Production and Advertising rose by GH¢0.03, or 5.77 per cent, to GH¢0.55.
MTN Ghana provided the most important support to the Composite Index, advancing by GH¢0.15, or 2.38 per cent, to close at GH¢6.45.
The telecommunications company had declined by GH¢0.26 to GH¢6.30 on October 7, when approximately 12.88 million shares worth GH¢81.16m changed hands.
Its October 8 recovery therefore restored part, but not all, of the value lost during the previous session. The share remained GH¢0.11 below its GH¢6.56 closing price on October 6.
MTN Ghana again dominated market value, accounting for GH¢3.30m of the GH¢6.86m traded across the exchange. This represented approximately 48.08 per cent of total turnover.
The stock also recorded the highest individual volume among ordinary shares, with 515,091 shares traded.
However, this was significantly below the 12.88m MTN Ghana shares exchanged a day earlier. The sharp fall confirms that October 7’s exceptionally high market turnover was driven mainly by a large transaction in the telecommunications company rather than broad market participation.
Total trading volume declined from approximately 13.38m shares on October 7 to 1.64m shares on October 8, representing a fall of about 87.76 per cent.
The value of transactions dropped even more sharply, falling from GH¢82.25m to GH¢6.86m. This represents a decline of approximately 91.66 per cent.
The sharp contraction means the positive movement in the Composite Index occurred in a substantially thinner market.
Although MTN Ghana remained the largest contributor to traded value, activity was more evenly distributed than in the previous session. On October 7, MTN Ghana accounted for almost 99 per cent of total market value. Its October 8 share fell to about 48 per cent.
Unilever Ghana contributed GH¢1.04m despite its share price falling by GH¢0.50 to GH¢39.50. Enterprise Group followed with GH¢559,044.55, while Ecobank Ghana recorded GH¢406,112 in turnover.
CalBank traded 310,603 shares worth GH¢217,501.44, while Intravenous Infusions recorded 293,602 shares valued at GH¢148,731.19 on the Ghana Alternative Market.
These transactions gave the session a broader distribution of trading value, even though overall liquidity remained far below the previous day’s level.
The decline in the Financial Stocks Index reflected losses in Ecobank Transnational Incorporated, CalBank and SIC Insurance, which outweighed gains in Enterprise Group, GCB Bank and Societe Generale Ghana.
ETI recorded the session’s steepest decline, falling by GH¢0.13, or 7.74 per cent, to GH¢1.55. The stock had gained GH¢0.01 in the previous session, making the latest fall a clear reversal.
SIC Insurance declined by GH¢0.23, or 4.56 per cent, to GH¢4.81. The insurer also lost GH¢0.05 on October 7, extending its decline over the two sessions to GH¢0.28.
CalBank fell by GH¢0.04, or 5.41 per cent, to GH¢0.70 after closing unchanged at GH¢0.74 in the previous session.
The mixed performance within the financial sector suggests that investors are distinguishing between individual companies rather than taking a uniform position on listed financial stocks.
Kasapreko declined by GH¢0.06, or 3.19 per cent, to GH¢1.82, reversing the GH¢0.01 gain recorded on October 7.
Intravenous Infusions fell by GH¢0.03 to GH¢0.51, extending its decline from the previous session. The stock has now fallen from GH¢0.55 on October 6 to GH¢0.51.
NewGold edged down by GH¢0.01 to GH¢462.37, with 48 units valued at GH¢22,193.82 traded.
Despite the negative market breadth, gains in heavily weighted counters particularly MTN Ghana were sufficient to push the Composite Index higher.
The October 8 session therefore presents a mixed market signal. The recovery in MTN Ghana and GOIL shows that buyers remain willing to enter selected stocks following sharp declines. However, the 92 per cent fall in turnover, negative breadth and continuing pressure on the Financial Stocks Index suggest that the rebound was selective rather than evidence of a market-wide return of risk appetite.
The next trading sessions will show whether buying interest in MTN Ghana, GOIL and GCB Bank can be sustained or whether the October 8 gains represented a technical rebound after the previous session’s selling pressure.
