Trading on the stock market closed the week under review on a mixed note. The benchmark Composite index failed to close on a positive note for a third successive week; the Financial Index however recovered on the back of advances in six financial stocks.
Despite gains in seven equities, the benchmark Composite Index (CI) trimmed 4.24 points to close the week at 2,212.28. The index however remains in positive territory with a year-to-date return of 3.13%.
The Financial Index (FI) however added 11.68 points to close the week at 2,116.93. The return on the financial index stands at 18.49%.
| Equity | Px(GH?) Wk Ending | Gain/ | Percent | |
| 22-Aug | 15-Aug | Loss (?) | Change | |
| Benso Oil Palm Plantation | 3.60 | 3.55 | 0.05 | 1.41 |
| Ghana Oil | 1.00 | 0.99 | 0.01 | 1.01 |
| Ecobank Ghana Ltd. | 7.07 | 7.09 | -0.02 | -0.28 |
| Total Petroleum Ghana Ltd. | 6.10 | 6.15 | -0.05 | -0.81 |
| Societe Generale Ghana Limited | 0.97 | 0.99 | -0.02 | -2.02 |
| Fan Milk Ltd. | 5.00 | 5.39 | -0.39 | -7.24 |
| PZ Cussons Ghana Ltd. | 0.40 | 0.44 | -0.04 | -9.09 |
| ?MSL Research; Data:GSE | ||||
Movers and shakers
Two advancers were seen this week with Benso Oil Palm registering the biggest appreciation as it leapt by 5GHp to close the week at GH?3.60. Ghana Oil also edged up a pesewa to end the week GH?1.00.
On the other hand, Ecobank Ghana trimmed some of the gains registered last week sliding 77GHp to GH?16.20. Profit taking also saw Total Petroleum slip to GH?5.16 while Stanchart and BOPP gave up a pesewa each to GH?14.15 and GH?3.84 respectively. Other laggards were GOIL, PBC and AYRTN.
Trading Activity
In all, a total of 1.31 million shares valued at GH?6.90 million were recorded. This was 25.49% lower than figures traded last week. UT Bank, Ecobank Transnational Incorporated and Stanchart had the lion?s share of trades.
Outlook
Trends on t he market is not expected to see a marked change in the week ahead as investor mood remains
subdued due to the pressure on some share prices. We however still see opportunities on the market for both the short term and long term investors in view of the attractive fundamentals.
Ecobank Ghana, SIC Insurance and Benso Oil Palm have had bids exceeding offers at most sessions of the week. We foresee their prices climbing higher in the week ahead.
Guinness Ghana, Total Petroleum, Unilever and Fan Milk may however tick lower as some investors look to exit positions.
Short term rates edged up at the auction held last Friday August 22, 2014 as the Central Bank accepted the majority of bids that were tendered.
The 91-Day bill gained 3 basis points to close at 25.02% while the 182-day bill also added a basis point to 26.41%. The 1-Year and 2-Year Notes were steady at 22.50% and 23.0% respectively.
Total bids submitted by dealers for bills and notes amounted to GH?831.34 M with the Central Bank accepting GH?822.68 M; higher than to Bank of Ghana?s initial target of GH?817.
The Cedi was under pressure during the week under review failing to bounce back from the previous week?s slide.
Reports released during the week showed an unexpected rise in U.S. Consumer confidence in August, giving the American labour market traction; this gave a massive boost to the greenback and saw the Cedi drop by 2.34% against the dollar to close the week at GH?3.13.
The Euro gained reprieve following the release of the August Eurozone inflation reading of 0.3% which fell in-line with forecasts and an unchanged unemployment rate of 11.5% in July. The Cedi lost 1.50% against the 18-nation currency to GH?4.13.
The Cedi also lost grounds against the Pound which appreciated on U.K. housing pricing data which rose 11.0% in August up from 10.6 percent in July. The local currency was down 2.22% against the Pound Sterling to GH?5.19. The local currency also trimmed 1.93% against the Swiss Franc with traders on the interbank market quoting GH?3.42 at the end of the week.
The Cedi also slipped against the South African Rand shedding 2.19%. Week ending rates for the South African Rand averaged GH?0.29.
Source Merban Stockbrokers Ltd
