Ghana Stock Exchange Sees a drop in Trading Activity
- Trade turnover on GSE plummets by 96.89% to GHS 35,174; total volume traded falls to 33,004 shares
Trading on the Ghana Stock Exchange (GSE) came to a near standstill on the 3rd of July 2024, with turnover plummeting 96.89 per cent to GHS35,174 ($3,000) amid a broader slowdown in market activity.
The GSE Composite Index remained unchanged at 3,829.61 points, maintaining its year-to-date return of 22.34 per cent. Similarly, the GSE Financial Stocks Index held steady at 2,115.04 points, with an 11.23 per cent return since the start of the year.
Market capitalisation stayed flat at GHS85.10bn, as no price movements were recorded across the board. The day saw a mere 33,004 shares changing hands across 17 different equities, marking a significant drop from recent trading sessions.
CAL Bank led the volume chart with 17,043 shares traded, accounting for over half of the day’s total volume.
Despite the lull in trading, there were outstanding offers for several stocks. Allghan, FML, GCB, and SOGEGH saw bids at GHS4.80, GHS3.68, GHS5.25, and GHS1.55 respectively, indicating some latent interest in the market.
The sharp decline in trading activity NorvanReports analysis and checks show that comes as the West African nation grapples with economic challenges or investors awaiting key policy decisions from the central bank.
Some Analysts who spoke to us and their identity withheld suggest that “uncertainty around upcoming economic data” or “caution ahead of earnings season” may be contributing to the reduced market participation.
While the GSE has shown robust performance year-to-date, yesterday’s muted activity raises questions about near-term market sentiment and liquidity.
Some market watchers will be keenly observing whether this represents a temporary lull or signals a shift in investor appetite for Ghanaian equities.
As global investors increasingly look to frontier markets for diversification and growth opportunities, the performance and liquidity of exchanges like the GSE remain crucial indicators of market development and economic health in emerging economies.
