Ghana Stock Exchange rebounds after bearish runs

Ghana Stock Exchange rebounds after bearish runs
  • A total turnover of 419,977 shares valued at GH¢722,370 exchanged hands as against the 1.00 million shares worth GH¢1.50 million traded in the week.
  • MTN Ghana Ltd. dominated market activities accounting for 76.93 percent of the overall trades.
  • NewGold topped the advancers with price gains of GH¢12.95 to end the week at GH¢94.10 per share.
  • In the upcoming auction, an amount of GH¢603.00 million is expected to be raised from the issuance of both the 91-Day and 182-Day T-Bills.

 

After weeks of bearish runs, the Ghana Stock Exchange ended the week ending April 24 in the gains. The IGS Financial Services, believes this was spurred by dwindling ill sentiment associated with the COVID-19 as Government lifted ban on the partial lockdown.

On the back of this, high demand for some heavily capitalized stocks such as Ecobank Ghana Ltd. and MTN Ghana Ltd. significantly trimmed losses on the bourse. 

In the week under review, investors increased their risk appetite for top-weighted stocks with robust financial performance trading below their book values in a bid to consolidate their long-term gains.

The GSE Composite Index, thus rebounded by 0.81 percent to settle at 2,152.63 points, representing a year-to-date loss of -4.63 percent.

In a similar vein, the GSE Financial Stocks Index recorded a week-on-week gain of 0.60 percent to close at 1,891.23 points corresponding to a negative year-to-date return of 6.36 percent.

Market activities, however, waned as compared to the previous week’s outturn.

A total turnover of 419,977 shares valued at GH¢722,370 exchanged hands as against the 1.00 million shares worth GH¢1.50 million traded in the week.

MTN Ghana Ltd. dominated market activities accounting for 76.93 percent of the overall trades. Market capitalization however, jumped by 0.87 percent to settle at GH¢55,739.11 million.

Stock price movements

A total of six equities recorded changed prices. NewGold topped the advancers with price gains of GH¢12.95 to end the week at GH¢94.10 per share.

Ecobank Ghana Ltd. rose by GH¢1.20 to settle at GH¢7.00 per share whereas MTN Ghana Ltd. upped its share price by a pesewa to trade at 69 pesewas

On the flip side, Standard Chartered Bank Ghana Ltd. emerged as the worst performing stock with 13 pesewas loss to trade at GH¢18.77 per share.

CAL Bank Ghana Ltd. and Republic Bank (Ghana) Ltd. also shed a pesewa each to end the trading week at 77 pesewas per share and 57 pesewas per share respectively.

Treasury securities

At the close of the week’s auction, the interest rates on the short-dated treasury securities witnessed mixed adjustment.

The yield on the 91-Day T-Bill rose by 18 basis points to settle at 14.03 percent whereas that on the 182-Day T-Bill upped by 4 basis points to 14.03 percent.

The yield on the 364-Day T-Bill however, dipped by 5 basis points to settle at 16.74 percent. Yields on the Government of Ghana treasury notes and bonds were, however, unaltered as they were not scheduled for the week’s auction

Government raised an amount of GH¢1,134.85 million out of the GH¢1,146.57 million tendered by investors. This fell slightly below the previous week’s value of GH¢1,358.77 million and the GH¢1,208.00 million target set for the week.

Among the bids raised, the 91-Day T-Bill was the most accepted bid, constituting 72.39 percent. In the upcoming auction, an amount of GH¢603.00 million is expected to be raised from the issuance of both the 91-Day and 182-Day T-Bills.