The stock market extended gains for a fourth week as investors desire to take positions saw eight equities rally.
At the close of the week?s ending session, the benchmark Composite Index (CI) defied declines in five equities to leap by 52.97 points to 2,286.67. The return on the CI is up to 6.59% from the previous week?s 4.13%
The Financial Stocks Index (FSI) was also bullish soaring by 52.83 points to 2,232.37. This brings its year to date return to 24.95%.
| Indicator | This Week | Previous Week | % Chg This Wk | % Chg?????????? Y-T-D |
| GSE CI | 2,286.67 | 2,233.70 | 2.37 | 6.59 |
| GSE FI | 2,232.37 | 2,179.54 | 2.42 | 24.95 |
| Market Cap | ???????? 63,912 | ?????????? 63,912 | 0.00 | 4.50 |
| Volume | ??? 3,376,221 | ????? 2,103,640 | 60.49 | -42.13 |
| Value | ?? 12,810,512 | ????? 5,581,882 | 129.50 | -22.33 |
| No. of Transactions | ???????????? 662 | ?????????????? 363 | 82.37 | N/A |
| No. of Traded Stocks | ?????????????? 24 | ???????????????? 25 | -4.00 | N/A |
| No. of Advancers | ???????????????? 8 | ?????????????????? 7 | ? | N/A |
| No. of Decliners | ???????????????? 5 | ?????????????????? 8 | ? | N/A |
| ? | ? | ? | ? | ? |
Market snapshot
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Guinness Ghana led movers as it registered the biggest appreciation of 13.24% to close the week at GH?3.08. Ecobank Transnational Incorporated sustained its northward climb edging up by 10.53% to 42GHp. Shareholders of GCB Bank and Tullow also bagged 3.87% and 2.86% to end the week at GH?5.10 and GH?36 respectively while SIC Insurance climbed 2.56% to 40GHp. Ecobank Ghana, Benso Oil Palm and Fan Milk were also amongst the movers rising to GH?7.11, GH?3.62 and GH?4.90 respectively.
On the other hand, Societe Generale and Enterprise Group trimmed 1.05% and 1.79% to 94GHp and GH?1.65; Mechanical Lloyd, Camelot and Golden Web also lost grounds to close the week at 28GHp, 12GHp and 3GHp respectively.
Trading Activity
The growing risk appetite led to volume and turnover registering significant increases during the week under review. A total of 3.38M shares changed hands in twenty-four equities. This compares to the 2.10M shares that were exchanged the previous week.
Turnover, on the back of the jump in some share prices and institutional trades exceeded the previous week?s value. Total value of shares came up to GH?12.81M. This was impressive when compared to the previous week?s GH?5.58M.
In the week ahead, analysts foresee bids to continue to exceed offers as investors seek to close deals. In this regard analysts expect shareholders of Ecobank Ghana, GCB, BOPP and ETI to see some gains in their holdings. Fan Milk, UT Bank and HFC Bank may however head southwards on the back of outstanding offers.
Following approval by Starwin Products Limited?s shareholders at their Annual General Meeting on 19 June 2013, the Company ?announced a GH?10M Renounceable Rights Issue of 333,359,264 ordinary shares of no par value at GHS0.03 per share. The Offer will be in a ratio of 4.49 new shares for every 1 existing share held.
The ex-rights and qualifying dates for the Offer have been set for 3.00pm on 1st October 2014 and 3rd October 2014 respectively. Only shareholders of SPL as at the close of business on 3rd October 2014 will be entitled to exercise their rights under this Offer which will commence on 20th October 2014 and close on 17th November 2014
On the Currency market, the Cedi struggled for stability as it recorded a mixed outturn against the major currencies.
Recent announcements of the anticipated inflows of about US$2.7 billion into the domestic economy failed to steady the Cedi during the week against the Dollar. The local currency shaved 0.12% against the greenback to GH?3.20.
The local currency also failed to take advantage of anxiety surrounding the Scottish vote which had weighed on the Sterling in recent weeks. The Cedi closed the week down by 1.12% against the Pound to end the week at a midrate of GH?5.24. The Cedi also slipped by 0.23% against the Swiss Franc with a week ending average rate of GH?3.43.
The Cedi however strengthen against the Euro and the South African Rand. Quotes by traders on the interbank market averaged GH?4.13 and GH?0.29 on Friday. This represents gains of 0.01% and 0.71% against the Swiss Euro and the South African Rand during the week.
Meanwhile the market will be closed for business on Monday, September 22, 2014 due to the founder?s public holiday. The market will however resume regular business on Tuesday, September 23, 2014.
Source Merban Stockbrokers Ltd
