Trading activity on the stock market closed the week?s opening session with gains in four equities helping the Composite Index bounce back from Friday?s slide. The Financial Index also sustained its upward drive.
The four advancers ?inched up a pesewa each. Ecobank Transnational Incorporated rose to 25GHp. Enterprise Group and Ghana Commercial Bank ascended to GH1.79 and GH?5.36 respectively while Ecobank
On the other hand, HFC Bank and Ghana Oil shed 5GHp off gains from last week; HFC Bank was down to GH?1.55 while Ghana Oil ended at 95GHp. Total Petroleum also eased to GH?6.54 from GH?6.57. Other decliners were Societe Generale and Cal Bank with each shaving a pesewa to 89GHp and 87GHp respectively.
Volume of shares traded however failed to match up to the previous session?s. In all a total of 61,931 shares valued at GH?78,890 were exchanged in twelve equities. SIC Insurance and CAL Bank had the lion?s share of trades.
The benchmark Composite Index added 0.92 points to 2,359.65.The gain in the benchmark index takes the year-to-date return on the bourse to 10.0%.
The Financial Index (FI) was also bullish leaping by 5.33 points to end the day at 2,105.13. The return on the Financial Index stands at 17.83%.
Outlook
In the days ahead, we do not foresee a change in trends. Ecobank Ghana, Ghana Commercial Bank may be in demand as investors seek to take positions. Ghana Oil may bounce back from today?s reverse as excess bids were seen at the end of the session.
Societe Generale, Total Petroleum, Fan Milk and Guinness Ghana may be under selling pressure as they closed the session with outstanding offers.
Short – term treasury rates lost grounds at the auction held last Friday June 13, 2014 as traders eager to win their bids quoted lower rates. The 1-Year and 2-Year notes however remained unchanged.
The yield on the 91-Day bill was down 2 basis points to 24.06% while the 182-day bill also eased to 21.28% from 21.29. The 1-Year and 2-Year Notes were steady at 22.50% and 23.00% respectively.
The Bank Of Ghana (BoG) accepted all bids tendered at the auction with a total of GH?574.42 million being raised in bills and notes.
The local currency struggled for stability as economic data in advanced countries saw it lose grounds.
With the Dollar strengthening due to improved economic data, the Cedi lost 0.17% to the green back with average rates by bankers at GH?3.00.
Against the Euro and the Swiss Franc the Cedi gave up 0.05% and 0.02% to GH?4.05 and GH?3.33 respectively.
The Pound Sterling continued to enjoy the lion’s share of attention in global forex markets; it ascended against the local currency by 0.92% with rates by interbank traders averaging GH?5.08.
The local currency however appreciated against the Rand. The Cedi took advantage of the weakened Rand after Fitch rating agency changed South African economic outlook to negative from stable last week. The Cedi gained 0.52% against the Rand to end the day at 28GHp.
Source Merban Stockbrokers Ltd
