NewGold, MTN continue to attract investors on the GSE
The Ghana Stock Exchange witnessed a rather uneventful trading day with no gains for investors. The benchmark index, GSE-Composite Index, closed at 2,802.96 points, unchanged from the previous trading day. This represents a year-to-date (YTD) change of 14.69%, reflecting a somewhat stable market.
Similarly, the GSE Financial Stocks Index also remained unchanged, closing at 1,810.90 points, with a YTD return of -11.78%. The overall lack of movement in the financial stocks index could be attributed to the uncertainty and volatility in the financial sector, particularly the banking industry, which has faced several challenges over the past year.
The market capitalization on the exchange declined by GH¢3.11 million, ending the trading day at GH¢68.38 billion, which represents a YTD change of 6.00%. The decline in market capitalization could be attributed to the lack of trading activity during the session. A total of 619,921 shares valued at GH¢2,691,316.62 were traded across ten counters, a significant decline of -99.61% and -98.12% in total volume and value traded, respectively, compared to the previous trading session.
The decline in the total volume and value traded could be indicative of the current risk-averse environment, where investors are cautious about taking positions in the market due to the unpredictable nature of the global economy. It is also possible that investors are holding back in anticipation of upcoming corporate earnings reports.
NewGold (GLD), one of the prominent stocks on the exchange, lost GH¢1.07 to close at GH¢233.00, representing a decrease of 0.46%. Despite the decline, NewGold remains an attractive stock for investors due to its impressive performance in the precious metals market, which is currently experiencing significant growth.
Scancom PLC. (MTNGH) topped the trading chart, with 607,703 shares valued at GH¢790,013.9, representing 29.35% of the total value traded. This was followed by New Gold (GLD), trading 8,136 shares valued at GH¢1,895,688.00, representing 70.44% of the total value traded. These figures highlight the current preference for MTNGH and GLD amongst investors, particularly given the volatile nature of the market.
The Ghana Stock Exchange recorded no significant gains during the trading session, with the lack of activity potentially attributed to market uncertainty and the upcoming earnings season. However, NewGold and Scancom PLC. continue to be attractive stocks for investors, despite the challenging economic environment, as they continue to deliver strong performances.
