Eight equities posted solid gains during the holiday shortened week helping the market reverse its recent slide.
Although impressive earnings results energised market activity, volume and turnover traded were however lower compared to figures recorded last week.
The benchmark Composite Index (CI) as a result brushed aside four laggards and climbed 7.02 points to close the week at 2,301.05. This gain saw the CI post a year-to-date return of 7.27%.
The Financial Stocks Index (FSI) was also bullish as it jumped 22.22 points to close the week at 2,131.99. The return on the financial index stands at 19.33%.
What Moved This Week
Notable trades in Mega African Capital drove its price up by 29GHp to GH?3.59.? Demand for the shares of Benso Oil also resulted in a 4GHp jump to GH?2.90.? Ecobank Transnational Incorporated and Ghana Commercial Bank gained 2GHp each to 31GHp and GH5.12 respectively. Other advancers this week were UT Bank, Societe Generale, Enterprise Group and Ecobank Ghana; each adding a pesewa. UTB and SOGEGH rose to 39GHp and 88GHp respectively while EGL and Ecobank Ghana closed at GH?1.81 and GH?7.01 respectively.
On the flip side, Guinness Ghana led four other decliners sliding 19GHp to GH?3.50. Fan Milk also trimmed 5GHp to GH?6.50. CAL Bank and Mechanical completed the list as they closed the week a pesewa lower at 87GHp and 30GHp respectively.
Movers and Shakers
Trading Activity
In all twenty five equities had their shares changing hands with a total volume of 3.15 million shares valued at GH?3.97 million being recorded.
Outlook
The bourse showed a mixed outturn in the week under review but robust earnings results are expected to give the indices a lift in the week ahead.? Market analysts ?foresee CAL, EBG and GCB ticking higher on the back of decent half year results.
SOGEGH, ETI and SIC may also improve as they closed most sessions of the week with outstanding bids. Bargain hunters may however put pressure on Guinness Ghana, Fan Milk and Unilever.
The 91 and 182-day bills extended their northward climb at the auction held last Friday July 25, 2014.
The 91 and 182-day bills added 13 and 38 basis points to 24.97% and 26.35% respectively. On the other hand, the 1-Year and 2-Year Notes were stable at 22.5% and 23.0% as investors? continue to show more interest in short dated securities.
The Bank of Ghana accepted GH?719.8 out of the GH?724.91 bids submitted by dealers for bills and notes. At the next auction to be held on August 1, 2014, the BoG hopes to raise GH?901 million in bills and notes.
Taking advantage of unimpressive economic indicators in most advanced countries this week, the Cedi strengthened on the forex market.
The Cedi edged higher against the Pound Sterling which was knocked down by unimpressive U.K. housing and consumer confidence data released on Wednesday. The Cedi appreciated by 0.54% against the Sterling with weekending rates by bankers averaging GH?5.12.
Eurozone inflation dropped to 0.4% in July, renewing the deflationary scare in Europe.? The pressured Euro depreciated against the Cedi with the local currency adding 0.60% against the 17-nation currency to close the week at GH?4.06.
The Cedi also improved by 2.01% against the Rand this week following petrol price hikes and 36% jump in youth unemployment during 2Q in South Africa. Local Bank traders quoted a mid ? rate of GH?0.28 per Rand.
Against the Swiss Franc, the local currency gained 0.70% with traders on the interbank market quoting an average of GH?3.34 in the week under review.
Reports this week showed a lower reading of U.S. unemployment claims, pointing to a strengthening economy; this however failed to give the Dollar an edge over the Cedi. The Ghanaian currency thus remained flat against the greenback as it traded unchanged from last week?s GH?3.03.
Source Merban Stockbrokers Ltd
