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Profit-Takers Cause GSE To Drop

The Ghana Stock Exchange (GSE) witnessed a rather subdued session, with most stocks yielding ground for a second consecutive day amidst the lowest daily trading activity seen in the last 10 sessions.

While early gains hinted at a positive start to the week, profit-taking activities by traders, who perceived the market as overbought following the recent surge post-Easter holidays, dampened the overall sentiment.

Out of the nine GSE listed equities in play, only one emerged as a gainer on the day- NewGold ETF, registering a 1.75% share price appreciation. Conversely, CAL Bank and MTN Ghana found themselves among the losers, with respective drops of 2.5% and 0.64%.

NewGold ETF (GLD) closed the day at GHS314.60 per share, marking a gain of GHS5.40 over its previous closing price. The ETF has shown remarkable resilience since the beginning of the year, boasting a 44% increase in share price and securing the second position on the GSE in terms of year-to-date performance.

On the contrary, CAL Bank (CAL) closed at GHS0.39 per share, witnessing a one pesewa drop from its previous closing price of GHS0.40. With an 18.8% decline from its starting share price in January, CAL Bank currently ranks 37th in terms of year-to-date performance.

Similarly, MTN Ghana (MTNGH) saw a slight dip, closing at GHS1.56 per share, down by 1 pesewa from its previous closing.

Despite this setback, MTN Ghana remains one of the most traded stocks on the GSE, commanding significant trading volumes and ranking fifth in terms of year-to-date performance, with an 11.4% increase from its starting share price.

Over the past three months, MTN Ghana has been a focal point of trading activity on the GSE, recording a total volume of 235 million shares valued at GHS 306 million. Notably, March 13 saw a peak trading volume of 183 million shares. The consistency of trading volumes underscores the stock’s importance and popularity among investors.

Significant Turnover

In spite of bears dominating, Monday’s trading session on the Ghana Stock Exchange (GSE) revealed notable improvements in turnover compared to the previous trading day, marking a significant uptick in market activity.

A total of 6,215,275 shares exchanged hands, amounting to a market value of GHS 9,646,311.79. This represents a remarkable 241% increase in turnover compared to the previous trading day, reflecting heightened investor participation and trading interest.

Leading the pack in terms of trading volume was MTN Ghana, with a substantial volume of 6.16 million shares traded. Following closely behind were Dannex Ayrton Starwin with 52,224 shares, CAL Bank with 5,339 shares, and Republic Bank Ghana with 550 shares, showcasing a diverse mix of stocks attracting investor attention.

However, despite the surge in trading activity, the performance of the GSE market indices saw a decline. The benchmark GSE Composite Index (GSE-CI) experienced a slight dip of 12.75 points, closing at 3,439.21 points. This represents a 1-week loss of 0.49%, although it still reflects a 4-week gain of 4.05% and an impressive year-to-date gain of 9.87%.

Similarly, the GSE Financial Stocks Index (GSE-FSI) also witnessed a marginal decrease of 0.05% to reach 2,013.72 points. Despite this dip, the index showed a 1-week gain of 0.61%, a 4-week gain of 0.57%, and a year-to-date gain of 5.9%, indicating relative stability and resilience within the financial sector.

As a consequence of the overall decline in performance, the market capitalization experienced a modest drop from GHS 77.9 billion to the current market capitalization of GHS 77.6 billion.

While Monday’s dip may reflect short-term market fluctuations, the broader trajectory of the GSE indices suggests continued positive momentum and investor confidence in the Ghanaian equities market.

Investors will be closely monitoring future trading sessions for further insights into the market and potential opportunities for portfolio growth.

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