GSE suffers fourth consecutive decline as sell-off wipes billions off market cap

The Ghana Stock Exchange (GSE) concluded the trading week on a somber note Friday, with the benchmark GSE Composite Index (GSE-CI) recording its fourth consecutive session of steep declines. The index shed 566.53 points to close at 12,989.79, extending a week-long rout that has significantly pared earlier gains.

The sustained selling pressure, driven largely by institutional profit-taking, also dragged the GSE Financial Stocks Index (GSE-FSI) down by 267.8 points to settle at 8,374.06.

The downturn resulted in a sharp contraction in market capitalization, which fell from GH¢255.21 billion on Thursday to GH¢245.61 billion by the end of Friday’s session, erasing billions of cedis in investor wealth. Total volume of shares traded for the session reached 15,018,221, with an aggregate value of GH¢70,647,309.36.

MTN Ghana Bears the Brunt

Telecommunications giant Scancom PLC (MTNGH) remained the epicenter of the market rout, plunging by GH¢0.36 to close at GH¢5.03. The stock accounted for more than 90% of all trading activity, with 13,816,222 shares changing hands, contributing GH¢69,501,204.36 to the day’s total market value.

MTN Ghana has now shed more than 20% of its value over the past four sessions, reflecting a significant pullback following a remarkable rally earlier in the year.

Banking and Insurance Stocks Extend Losses

The sell-off was broad-based, with major banking and insurance stocks extending their losses. Societe Generale Ghana PLC (SOGEGH) tumbled by GH¢0.78 to close at GH¢7.08, while GCB Bank PLC (GCB) fell GH¢3.70 to GH¢33.38.

SIC Insurance Company PLC (SIC) declined by GH¢0.12 to GH¢3.37, and Ecobank Transnational Inc. (ETI) shed GH¢0.14 to GH¢1.66.

GOIL Records Lone Gain

Amid the broad decline, Ghana Oil Company Limited (GOIL) bucked the downward trend, rising by GH¢0.19 to close at GH¢7.86. Atlantic Lithium Ltd (ALLGH) also recorded a marginal gain of GH¢0.03 to GH¢6.55.

BOPP Holds Steady

Benso Palm Plantation PLC (BOPP) maintained its historic triple-digit price level, closing unchanged at GH¢100.00, with 1,000 shares traded.

A significant number of other stocks recorded no price movement during Friday’s session, including Access Bank, ADB, AngloGold Ashanti, Cal Bank, Ecobank Ghana, Fan Milk, Guinness Ghana Breweries, TotalEnergies, Tullow Oil, and Unilever, among others.

Market Summary

Despite the recent correction, the GSE-CI remains up 48.11% since the start of the year, though this is a significant reduction from the over 80% gains recorded earlier in the month. The financial stocks index continues to show strong performance, remaining up 80.20% year-to-date.

Friday’s session brought a brutal week of trading to a close, with the benchmark index shedding more than 2,500 points from its record high of 15,908.77 reached on March 18, representing a decline of approximately 18% from the peak.