The Ghana Stock Exchange (GSE) ended the week higher on October 16, despite a significant 89.45% decline in total market volume. The value of securities traded also plummeted by 93.87%, falling from GHS 43.87 million to GHS 2.69 million. This sharp contraction in activity followed an exceptionally large trade involving MTN Ghana on the preceding day.
The dramatic fall in trading volume and value was primarily due to the absence of the unusually large MTN Ghana transaction that boosted the previous day's figures. On October 15, MTN Ghana accounted for 6.34 million shares worth GHS 41.28 million. A day later, the telecommunications giant traded only 186,044 shares valued at GHS 1.25 million, a 96.97% reduction in its turnover. This highlights the market's reliance on occasional large trades in a few dominant stocks.
Ghana's stock market often experiences concentrated trading, where a few large companies significantly influence overall market metrics. This concentration can make daily comparisons appear extreme, even when most other equities see modest changes. The GSE's performance, therefore, frequently reflects the movements of its most liquid counters, such as MTN Ghana and GCB Bank, which together supplied approximately 65.45% of the market's turnover on October 16.
MTN Ghana's share price recovered to GHS 6.73, gaining GHS 0.22, or 3.38%, after falling to GHS 6.51 the previous day. This recovery offset most of its GHS 0.27 loss from the prior session. The narrow bid-offer spread, with closing demand at GHS 6.74 and the best offer at GHS 6.75, suggested continued buyer interest after the rebound. GOIL delivered the strongest gain among ordinary equities, rising GHS 0.50, or 9.09%, to GHS 6.00, though on a modest volume of 7,210 shares.
Other gainers included Cocoa Processing Company, which advanced 9.38% to GHS 0.35, reaching a new year high. Republic Bank Ghana rose 2.25% to GHS 4.09, Access Bank gained 0.19% to GHS 20.79, and Enterprise Group edged 0.12% higher to GHS 8.70. These six gainers outnumbered four declining stocks, indicating a healthier market breadth than the turnover figures alone suggested. Twenty-two ordinary equities, including GCB Bank and Ecobank Ghana, saw no price movement.
On the losing side, TotalEnergies Marketing Ghana recorded the largest absolute price decline, falling GHS 1.00, or 2.38%, to GHS 41.00. Kasapreko also slipped GHS 0.02 to GHS 1.89. These movements illustrate short-term price adjustments as investors test valuations following earlier gains. The Ghana Alternative Market (GAX) saw increased activity, with combined volume rising to 187,279 shares from 46,433 shares, a more than 303% increase. Its traded value climbed from GHS 27,517 to GHS 107,089, partly offsetting the main market's decline.
The reliance on a few dominant stocks for market liquidity and value remains a key characteristic of the GSE. While the overall market ended higher, the significant drop in trading activity underscores the need for broader participation and diversification of highly liquid counters. Investors will continue to monitor the performance of major players like MTN Ghana and GCB Bank, as their movements often dictate the direction of the composite index. The increased activity on the GAX suggests potential for growth in smaller, alternative market listings, which could contribute to more diversified market liquidity in the future.