Trading activity on the bourse during the week was impacted by year-end commitments of investors. Though volume and turnover were given a boost by a block trade in Starwin Products, activity ebbed at most sessions.

The market however closed the week higher with gains in three equities defying declines in four others. The benchmark Composite Index as a result edged up by 6.11 points to 2,130.87. This outturn saw the market?s year to date gain climb to 77.61% at the week?s ending session.

Moved This WeekThe Financial Stock Index (FSI) also added 1.18 points to 1,780.47. This brings its year to date return to 71.22%.

What Moved This Week

Ghana Commercial Bank led gainers climbing by 10GHp to GH?4.90. Aluworks and Total Petroleum also inched up a pesewa each to 6GHp and GH?5.03 respectively.

On the flip side four decliners shaved a pesewa each. Stanchart eased to GH?14.95; Enterprise Group was down to GH?1.89 while Starwin and CPC closed the week at 3GHp and 1GHp respectively.

Trading Activity

A total of 2.84M shares valued at GH?1.85M were exchanged in twenty-four equities. Starwin Products had the lion?s share of volume.

Outlook

Bids have dropped in the last four sessions. We thus foresee tepid activity in the coming week. Volumes may be low as buyers and sellers remain apart on price in some stocks.

Ecobank Ghana, Ghana Commercial Bank and Societe Generale may be in demand as they closed the last two sessions of the week with outstanding bids.

Stanchart, Fan Milk, Enterprise Group and Unilever however saw excess offers. We however expect their prices to remain steady as sellers were not prepared to offload their shares below the current market price.

Money Market

The 91-day bill ticked higher but the other treasury rates slipped at the auction held last Thursday December 5, 2013.

The 91-Day bill gained 2 basis points to close at 18.68%. The 182-day bill however lost 30 basis points to 18.80% while the 1-Year and 2-Year Notes shaved 50 basis points each to 17.50%.

The Bank of Ghana had targeted an amount of GH?350M for the auction but total bids submitted by dealers for bills and notes amounted to GH?353.29M. The Central Bank accepted GH?350.61M.

 

Foreign Exchange Market

On the currency front the Cedi rallied late in the week to close stronger against the Dollar, Pound and Rand. The local currency however slipped against the Euro and the Pound.

The Cedi trimmed 1.38% against the Euro which strengthened on expectations of a banking deal by European Union?finance?ministers and improved ??employment numbers. Rates by dealers on the interbank market averaged GH?2.87 at the week?s close.

The Cedi also slipped by 1.71% against the Swiss Franc to close the week at GH?2.35.

The Cedi however improved against the Dollar and the Pound climbing 0.03% and 0.13% with average rates by bankers on Friday at GH?2.09 and GH?3.42 respectively.

Against the South African Rand the Cedi also appreciated by 0.07% to changed hands at GH?0.20.

Source Merban Stockbrokers Ltd

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