The stock market?s eight-week bullish run ground to a halt last week as gains in Fan Milk, SIC insurance, Total Petroleum and two others were unable to push the indices higher.
Declines in nine equities weighed the benchmark Composite Index thus losing 18.29 points to close the week at 2,420.91.? Its year-to-date return however remains positive at 12.85%. The Financial Stocks Index (FSI) was also down 33.91 points to close the week at 2,168.26. The return on the financial index stands at 21.36%.
Gainers and decliners
Equities that moved
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Fan Milk continued its upward drive last week with a rising 8GHp to close at GH?7.32. SIC Insurance and Total Petroleum followed adding 4GHp each to close at 44GHp and GH?5.29 respectively. HFC Bank and Mechanical Lloyd also inched up a pesewa each to close at GH?1.10 and 39GHp respectively.
On the flip side, Ghana Commercial Bank was under pressure sliding 35GHp to GH?4.10; Benso Oil Palm and Ghana Oil shaved 14GHp and 8GHp to close at GH?3.15 77GHp respectively.
Ecobank Ghana and CAL Bank also dropped 6GHp and 5GHp to end the session at GH?7.92 and 96GHp; Enterprise Group also eased to GH?2.48 from GH?2.50.? The Trust Bank (Gambia), Stanchart and Societe Generale completed the list of laggards shaving a pesewa each to 25GHp, GH?20.54 and 1.17GHp respectively.
Trading Activity
Volume and value of shares traded during the week were lower than that of the previous week.? A total of 1.07 million shares valued at GH?2.62 million were exchanged in twenty five equities.
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Outlook
In the coming week, we expect the market to be relatively steady. Fan Milk, SIC Insurance, Total Petroleum and UTB will continue to enjoy positive investor sentiments. This is likely to boost the share price. CAL Bank, Ghana Ecobank Ghana and Enterprise Group may be under selling pressure as investors look to take profits.
The 91 and 182-day bills extended their northward climb at the auction held last Friday February 21, 2014.
The 91 and 182-day bills edged higher from the previous week?s 20.79% and 20.27% to 21.08% and 20.94% respectively. On the other hand, the 1-Year and 2-Year Notes were stable at 17.00% and 17.50% as investors showed more interest in the short – dated securities.
Total bids submitted by dealers for bills and notes amounted to GH?566.20 million but the Central Bank accepted GH?541.68 million. Overall, the Central Bank took 0.07% more at the auction as it had initially targeted GH?507 million.
The Cedi closed the week under review on a low note against the major currencies as it failed to maintain stability on the currency front.
The euro strengthened this week as consumer prices in the Euro- zone increased by an annualized rate of 0.8%. The Cedi thus slipped by 2.65% and currently trades at GH?3.46 against the 18 nation currency.
Against the Dollar and the Pound, the local currency could not regain grounds lost last week. It depreciated by 2.65% and 2.76% against the greenback and the Pound Sterling with rates by interbank traders averaging GH?2.52 and GH?4.21 respectively.
The Cedi also lost ground ?against the South African Rand which has been strong this week on the back of unexpected increase in South Africa?s GDP. The local currency shed 5.06% to close the week at 23p.
Against the Swiss Franc, the Cedi shaved 2.87% with dealers on the interbank market quoting GH?2.84.
Source Merban Stockbrokers Ltd
