The bulls this week could not help the market bounce back from the previous week?s slide as downward pressure in nine equities saw the indices shed points.
Though four equities closed the week up, the benchmark Composite Index (CI) shed 49.96 points to close the week at 2,216.52. The benchmark index however remains in positive territory with a year-to-date return of 3.32%.
The Financial Index (FI) also dropped 50.09 points to close the week at 2,105.25. The return on the financial index stands at 17.84%.
Movers and shakers
On price movements, Benso Oil Palm lead advancers with a 30GHp gain to close at GH?3.50. Investors with shares in Societe Generale were also 5GHp richer as it climbed to GH?1.00. Ecobank Ghana also sustained its recovery bagging 4GHp to end the week at GH?7.07. Stanchart completed the list inching up a pesewa to GH?18.01.
On the flip side, nine other equities saw downward trend in the week under review. Ghana Commercial Bank and Guinness Ghana were under selling pressure dropping 40GHp and 30GHp to GH?4.60 and GH?2.50 respectively. Enterprise Group eased to GH?1.67 from GH?1.80 while Total Petroleum and HFC Bank gave up 5GHp each to GH?6.25 and GH?1.30 respectively.
Bargain hunting lead to PZ Cussons and UT Bank dropping 4GHp and 3GHp to 45GHp and 36GHp respectively. ETI pared 2GHp off last week?s gains to 32GHp. Produce Buying Company also dipped by 2GHp to close the week at 12GHp.
Trading Activity
Volume and turnover registered compared unfavourably to figures recorded last week. A total of 1.75 million shares valued at GH?1.76 million changed hands in twenty-four equities. The most traded stocks were ETI, CAL Bank and
Societe Generale which together accounted for 66.0% of the week?s total volume.
Outlook
In the coming weeks, market analysts expect Ecobank Ghana, CAL Bank and SIC Insurance to steady the market based on trends observed in recent sessions. We also foresee sustained interest in Ecobank Transnational Incorporated
Short term rates scaled up at the auction held last Friday August 8, 2014 on higher bids for the 91-Day and 182-Day Bills.
The 91-Day bill rose by a basis point to close the auction at 25.02%. The 182-day bill also gained 14 basis points to 26.39%. The 1-Year and 2-Year Notes were however unchanged at the previous week?s 22.50% and 23.00% respectively.
With the current attractive rates on the money market, bids by dealers amounted to GH?1,772.37 million, 108.91% above the Central Bank?s target of GH?846 million. A total of GH?1,767.37 million was thus accepted by the BoG.
The Cedi showed volatility on the forex market closing the week on a mixed note despite demand pressures and unexciting economic data from some advanced countries.
Economic data released by the Bank of England indicated a fall in Britain?s wages; the Cedi as a result edged over the Sterling appreciating by 0.92% during the week. Average rates by bankers for the Cedi versus the Pound Sterling stood at GH?4.61 on Friday.
Against the Euro, the Cedi depreciated by 0.92% to close the week at GH?4.6 despite renewed Ukraine tensions putting pressure on the shared currency globally.
Dealers in search of the Swiss Franc and the South African Rand had to pay more for the two currencies as midrates increased to GH?3.35 and GH?0.29 from GH?3.34 and GH?0.28 the previous week. Overall, the Cedi shaved 0.46% and 1.73% against the Swiss Franc and the South African Rand.
The local currency was however resilient against the U.S. Dollar following the release of lacklustre weekly jobless claims on Thursday and weak retail sales data earlier this week. The Ghanaian currency for the longest period this year stabilized against the Dollar as interbank traders paid an average rate of GH?3.03 since late July.
Source Merban Stockbrokers Ltd
