GSE slips as bearish sentiment takes hold
The Ghana Stock Exchange witnessed a modest retreat in the benchmark index, the GSE-Composite Index, on the 29th of March 2023, shedding 2.34 points to close at 2,800.62 points. This downturn reflects the broader market malaise in the West African country, as the YTD change for the index is a significant 14.60%. Similarly, the GSE Financial Stocks Index experienced a dip, shedding 4.23 points to close the day at 1,806.67 points, with a YTD return of -11.98%.
The bearish sentiment was driven by a combination of macroeconomic headwinds and company-specific news. While Trust Bank Gambia Ltd (TBL) posted gains, adding GH¢0.02 to close at GH¢0.82, Societe Generale Ghana PLC (SOGEGH) suffered a setback, shedding GH¢0.04 to close at GH¢0.62. The market capitalization also declined, falling by GH¢9.73 million, closing the trading day at GH¢68.37 billion, which represents a YTD change of 5.99%.
In terms of trading activity, a total of 1,036,093 shares valued at GH¢1,403,234.63 traded across thirteen (13) counters. The total volume traded rose by 67.13%, indicating a higher level of investor participation relative to the previous trading session. However, the total value traded declined by -47.86%, highlighting a reduction in the overall size of the market.
Scancom PLC (MTNGH) was the most traded stock of the day, with 912,656 shares changing hands, valued at GH¢1,186,452.80, which represents 84.55% of the total value traded. This indicates that investors are placing a premium on telecommunications stocks in Ghana, which are often viewed as defensive assets during economic downturns. Societe Generale Ghana PLC (SOGEGH) was the second most traded stock of the day, with 67,684 shares valued at GH¢42,000.28, representing 11.29% of total value traded.
Overall, the Ghanaian stock market is facing a challenging operating environment, characterized by sluggish economic growth and elevated inflation rates. Nonetheless, there are pockets of opportunities for savvy investors who can identify resilient companies with solid fundamentals. As always, investors should conduct thorough due diligence and consult with their financial advisors before making any investment decisions in the Ghanaian equity market.
