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GCB New Logo

Investor interest in the market remained high with impressive bids and offers being registered at most session of the week. The market however extended its southward drift as the search for discount deals led to declines in seven equities.

GCB New Logo

At the close of the week?s ending session, the benchmark Composite Index (CI) was down by 27.70 points to 2,233.39. The CI slipped into negative territory with a year to date change of -1.22%.

The Financial Stocks Index (FSI) also backtracked shedding 32.51 points to 2,213.14. This brings its year to date return to -1.36%.

Ghana Oil was the sole gainer edging up by a pesewa to GH?1.06. Eight equities however slipped under selling pressure. GCB Bank was the biggest loser dropping 20GHp to GH?5.50 Ecobank Ghana was also down 8GHp to GH?7.49 while Standard Chartered Bank shaved 4GHp to GH?20.10.

Enterprise Group gave up 2GHp to GH?1.70 while SIC and ETI trimmed a pesewa each to 35GHp and 25GHp respectively.? UT Bank and CPC completed the list easing to 22GHp and 1GHp respectively.

Gainers and Decliners
Equity Week Ending/Price(GH?) Gain/ Percent
16-Jan 9-Jan Loss (?) Change
Ghana Oil 1.06 1.05 0.01 0.95
Stanchart 20.10 20.14 -0.04 -0.20
Ecobank Ghana 7.49 7.57 -0.08 -1.06
Enterprise Group 1.70 1.72 -0.02 -1.16
SIC Insurance 0.35 0.36 -0.01 -2.78
GCB Bank 5.50 5.70 -0.20 -3.51
Ecobank Trans. Inc. 0.25 0.26 -0.01 -3.85
UT Bank 0.22 0.23 -0.01 -4.35
Cocoa Processing 0.01 0.02 -0.01 -50.00
??UMBS Research; Data: GSE

A block trade in the shares of SIC Insurance was one of the highlights of trading activity on the bourse during the week.

Volume and turnover were as a result were impressive with a total of 4.56 million shares changing hands. This compares to the 663,861 shares that were exchanged the previous week.

Turnover for the week came up to GH?2.62 million, compared to the previous week?s GH?2.57 million.

In the coming weeks market analysts do not foresee a marked change in trading activity as investors continue to take positions. Trades may however be at a premium if buyers and sellers remain apart on their valuations

At the? close of bell interest in CAL Bank, Ghana Oil and UT Bank gained momentum as witnessed by the outstanding bids. They are likely to be amongst advancers at the next session. GCB Bank, Enterprise Group and Ecobank Ghana may however shed some ground as buyers continue to look for discounted deals.

The Central Bank published its borrowing calendar during the previous week. Nonetheless, indications of higher need of funds failed to impact on rates at the auction held last Friday January 9, 2015. The 91 and 182-day bills lost ground while the 1-Year and 2-Year Notes remained steady at previous levels.

With investors anticipating an easing of inflationary pressures when discussions are concluded with the IMF, the 91-day bill shaved a basis point to close at 25.83%.

The 182-Day bill was also down by 3 basis points to 26.38%.? The 1-year and 2-Year Notes were however stable at last week?s 22.50% and 23.0% respectively.

A total of GH?844.9 million was raised by the Bank of Ghana. At the auction to be held on Friday January 16, 2015, the Bank of Ghana hopes to raise GH?937 million.

The local currency registered its biggest weekly loss against the Swiss Franc as the move by the Swiss National Bank (SNB) to remove a cap in place since 2011 led to the franc soaring globally. The Cedi also lost grounds to the Dollar, Pound and Rand as demand by corporates and importers especially squeezed supply.

The Cedi gave up 0.23% against the Swiss Franc as the removal of the three-year cap of the Franc to the Euro sent the export dependent economy?s currency ascending. Traders on the interbank market quoted GH?3.63 for the franc at the current week?s close from GH?3.17 the previous week.

The Cedi was unable to take advantage of a drop in U.S. retail sales and a rise in U.S. jobless claims to its highest level in four months. The Cedi trimmed 0.27% against the greenback with traders on the interbank market quoting an average rate of GH?3.22 for the Dollar.

The Cedi also trimmed 0.65% and 2.15% against the Pound Sterling and the South African Rand with rates on the interbank board averaging GH?4.89 and GH?0.28 for the Pound Sterling and the South African Rand respectively on Friday.

The local currency however strengthened against the Euro as concerns over the euro zone weighed. The Cedi as a result gained 1.77% against the shared currency to change hands at GH?3.74.

The rate is the percentage change in the consumer price index over the twelve-month period from December 2013 to December 2014. According to the Deputy Government Statistician, the year-on-year change in the non-food inflation rate was three and half times higher than the food inflation rate.

The main drivers for the non-food inflation rate were housing, water, electricity, gas and other fuels, which dropped by 35.2%, and transport, which was, however, up by 30.8%. The price drivers for the food inflation rate were coffee, tea and cocoa, mineral water, soft drinks, fruits and vegetable juices, among others.

This announcement will be welcome by most economic participants as they look forward to an improvement in economic indicators in 2015. In 2014, the sliding local currency and rising cost levels saw inflation climbing from 13.5% in December 2013 to 17% at the end of the year.

HFC Bank (HFC) has informed the investing public that two shareholders of the bank have gone to Court against thirteen (13) defendants including SSNIT and Ernest Thompson, Director General of SSNIT.

The two shareholders are seeking an interlocutory injunction against the Extraordinary General Meeting scheduled for Tuesday, January 20, 2015.

In the light of these circumstances, the meeting will no longer be held as previously indicated.

Standard Chartered Bank (SCB) has announced a dividend of GH?0.0758 per preference share in respect of the dividend period of six months up to March, 2015.

All preference shareholders registered in the books of SCB at the close of business on Friday, February 27, 2015 will qualify for the dividend

Source UMB Stockbrokers Ltd


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