By the end of trading on Thursday the Ghana Stock Exchange (GSE) had lost about GH¢4.56 billion of capital since the beginning of the year due to the bearish performance of the market.
The market closed on Thursday with a total market capitalization of GH¢56.95 billion and a year-to-date fall in the composite index (GSE-CI) of -12.27 per cent, after opening the year with capitalization of GH¢ 61.51 billion.
The GSE Composite index (GSE-CI) continue to decline having recorded a year to date drop of -12.27 per cent, and this included a -9.90 per cent year to date decline for the financial stocks index (GSE-FSI), as at Thursday, September 12, 2019.
Currently, the market seems to be in a free-fall, with no sign of recovery at the moment.
The GSE Composite Index (GSE-CI) measures the weighted average price changes of all the equities listed on the market, and the GSE Financial Stock Index (GSE-FSI) – tracks the weighted average price changes of financial services equities.
The slowdown in the performance of the financial services industry has largely been attributed to the decline in the GSE-FSI.
However, the decline in the GSE-FSI since the beginning of this year has not been as fast compared with the decline of the GSE-CI and so the data indicates there are other factors at work too.
An analyst with UMB stockbrokers, Ben Ackah indicated that the market is not expected to crawl back to a positive range in terms of the year-to-date figures any time soon.
A positive position may be recorded, unless the market receives some new spectacular information, he stated.
“Either too, I do not expect a significant decline, because a lot of the information out there has already been priced into the market, at the moment. That is why there has been the decline,” Mr Ackah stated.
As at the close of trading on Thursday, 21 stocks across the market had recorded drop in prices this year out a total number of 33 stocks. This includes seven stocks in the financial services sector.