The stock market rose at the mid-week session as increased risk appetite saw gains in session equities lifting the indices at the close of the session.
Mega African Capital led advancers leaping by 20GHp to GH?4.00. Enterprise Group followed climbing 8GHp to GH?1.50 while Ecobank Ghana rose to GH?7.34 from GH?7.31. CAL Bank and Fan Milk also edged up by 2GHp each to GH?1.02 and GH?4.97 respectively. Societe Generale the most traded stock today and HFC Bank added a pesewa each 87GHp and GH?1.31 respectively.
Gold ETF also appreciated by GH?9.45 to end the day?s trading at GH?35.80.
In all sixteen equities had their shares changing hands with a total of 532,891 shares valued at GH?428,700 being recorded.
At the closing bell the benchmark Composite Index was up 7.42 points to 2,272.09, representing a change of 5.91%. The Financial Index also edged up 9.23 points to 2,240.04. The year to date return on the Financial Index stands at 25.38%.
Outlook
Bids for equities like Stanchart, CAL Bank, GCB Bank, Enterprise Group and Ecobank Ghana exceeded offers at the closing bell today. The market is thus expected to consolidate gains at the next session of the week. We however foresee possible losses by Unilever, SIC Insurance and UT Bank.
The ?2015 Budget statement and economic? presented to Parliament by the Finance Minister Seth Terkper ?came out withsSome specific macroeconomic targets.
This includes an overall real GDP (including oil) growth of 3.9%, non-oil real GDP growth of 2.7%, year-end inflation target of 11.5%, overall budget deficit equivalent to 6.5% of GDP; and gross international reserves of not less than 3 months of import cover of goods and services.
Mr. Tekper also added that government will pursue an International Monetary Fund (IMF) programme next year which will provide technical assistance and Balance of Payments support for the next three years. In the medium-term, the government will embark on an export-led development strategy to boost foreign exchange earnings and enhance domestic production to address the external sector imbalances.
On the currency front, the Cedi appreciated against the Dollar and the Pound but slipped against the Euro, the Swiss Franc and South African Rand.
The local currency outperformed the Dollar today with interbank traders paying 0.02% less for the greenback at an average market rate of GH?3.20.
| Currency | Rate | Rate | Gain / Loss | |||
| 19-Nov | 18-Nov | Today | 1-Mth | 12-Mo | Y-T-D | |
| Dollar | 3.1980 | 3.1985 | 0.02 | -0.07 | -35.40 | -32.41 |
| Euro | 4.0042 | 3.9851 | -0.48 | 1.89 | -30.23 | -25.42 |
| Pound | 5.0013 | 5.0019 | 0.01 | 2.84 | -33.47 | -28.57 |
| Swiss Franc | 3.3339 | 3.3170 | -0.51 | 1.34 | -32.04 | -26.86 |
| Rand | 0.2892 | 0.2860 | -1.11 | -0.76 | -29.45 | -28.67 |
| SOURCE: Bank of Ghana | ||||||
The Cedi also regained some grounds against the Pound after November Bank Of England minutes reflected little urgency to tighten monetary policy. The Cedi appreciated, though marginally by 0.01% against the Sterling with midrates by forex traders hovering around GH?5.00.
On the other hand, the Cedi depreciated against the Euro as the European Central Bank continues its battle to boost growth in the Eurozone?; the shared currency edged up 0.48% against the Cedi to trade at a mid-rate of GH?4.00 on the currency market.
The South African Consumer Price Index rate for October remained flat for the second consecutive month at 5.9%. This drove the Rand up by 1.11% against Cedi as came in line with market expectations. The day ended with the Cedi changing hands at 29GHp per Rand on the forex market.
Against the Swiss Franc the local currency trimmed 0.51% with traders on the interbank market quoting GH?3.34 for the Swiss Franc respectively.
Source Merban Stockbrolers Ltd
