Trading activity on the Accra Bourse remained upbeat throughout the week as investors rushed to take positions at bargain prices.
Four equities thus closed the week higher while volume and turnover impressed but the market?s indices saw their four week rally fizzling out as seven decliners weighed.
At the close of the week?s ending session, the benchmark Composite Index (CI) was down by 32.46 points to 2,254.20. The return on the CI however remains positive with a year to date gain of 5.08%.
The Financial Stocks Index (FSI) was unable to soar higher as it slipped by 44.53 points to 2,187.84. This brings its year to date return to 22.46%.
| Indicator | Current
Week |
Previous Week | % Chg This Wk | % Chg?????????? Y-T-D |
| GSE CI | 2,254.20 | 2,286.67 | -1.42 | 5.08 |
| GSE FI | 2,187.84 | 2,232.37 | -1.99 | 22.46 |
| Market Cap (GH? M) | 65,246 | 63,912 | 2.09 | 6.68 |
| Volume | 4,171,914 | 3,376,221 | 23.57 | -42.13 |
| Value | 6,070,345 | 12,810,512 | -52.61 | -22.33 |
| No. of Transactions | 480 | 662 | -27.49 | N/A |
| No. of Traded Stocks | 26 | 24 | 8.33 | N/A |
| No. of Advancers | 4 | 8 | N/A | |
| No. of Decliners | 7 | 5 | N/A |
Market Snapshot
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Movers and shakers
Trust Bank ? Gambia and Benso Oil Palm were the major movers during the week under review bagging 3GHp each to 27GHp and GH?3.65 respectively. Ghana Oil and GCB Bank also added a pesewa each climbing to GH?1.0 and GH?5.11 respectively.
On the other hand, Enterprise Group was under pressure shedding 10GHp to close at GH?1.55. ETI was under selling pressure trimming 4GHp to 38GHp while Mechanical Lloyd shaved 2GHp to 26GHp. Three equities slipped a pesewa each. Ecobank Ghana and Societe Generale eased to GH?7.10 and 93GHp while Aluworks dropped to 3GHp.
Trading Activity
Volume and turnover impressed again on account of the growing risk appetite. A total of 4.17M shares changed hands in twenty-six equities. This compares to the 3.38M shares that were exchanged the previous week.
Turnover was higher although it failed to exceed the previous week?s value. Total value of shares traded came up to GH?6.07M, compared to the previous week?s GH?12.81M.
Outlook
Trends observed during the week under review point to stocks like Standard Chartered, CAL Bank, SIC and GCB Bank being in demand as investors seek bargain deals. Fan Milk may also gain grounds but profit taking in ETI may weigh on the indices. PZ Cussons, Unilever and HFC Bank may however head southwards on the back of outstanding offers.
The Central Bank accepted more funds from dealers at the auction held last Friday September 19, 2014 as the see-saw in short dated securities continued.
A total amount of GH?879.19 million was raised by the Bank of Ghana in bills and notes. This was higher than the GH?773 million it had projected to raise. Total bids submitted by dealers amounted to GH?879.20 million.
Although rates on the money market remain fairly stable, the 91 and 182-day bills ended the auction in different directions.
The 91-day bill trimmed 2 basis points to 25.40% but the 182-day bill climbed 4 basis points to 26.40%.? The 1-year and 2-year notes however remained unchanged at 22.50% and 23.00% respectively. The 1-Year and 2-Year Notes have been at these levels since April 2014.
In the week ahead, we expect rates to remain steady as we do not foresee any significant changes in the economy?s fundamentals.
The Cedi displayed some resilience on the currency market during the week as recent announcements of the anticipated inflows of about US$2.7 billion into the domestic economy saw the local currency close the week on a strong note against the major currencies.
The Cedi was steady against the Dollar during the week in spite of data showing that the U.S. economy grew at its fastest pace in 2 years during the second quarter. Although the Cedi fluctuated in midweek, average rates by bankers on Friday was unchanged from the previous week?s closing level of GH?3.20.
The local currency also gained grounds on the Euro taking advantage of weak economic numbers for the region. The Cedi closed the week up by 1.47% against the shared currency to end the week at a midrate of GH?4.07. The Cedi also gained 0.56% against the Pound Sterling with a week ending average rate of GH?5.22.
The Cedi was equally bullish against the Swiss Franc and the South African Rand. Quotes by traders on the interbank market averaged GH?3.38 and GH?0.28 on Friday. This represents gains of 1.47% and 1.97% against the Swiss Franc and the South African Rand during the week.
Source Merban Stockbrokers Ltd
