Trading activity on the bourse closed the week on a buoyant note

Trading activity on the bourse closed the week on a buoyant note with gains in five equities helping the market indices sustain their upward drive.

Volume and value of shares traded also increased compared to last week?s figures. Activity was boosted by block trades in SIC Insurance and Cal Bank.

Ghana Commercial Bank led gainers this week leaping? 14GHp to GHC5.05. Fan Milk and Stanchart were also in demand adding 8GHp and 5GHp to end the week at GH?6.72 and GH?15.05 respectively. CAL Bank and Ecobank Ghana completed the list climbing a pesewa each to 98GHp and 23GHp respectively.

On the other hand, Mechanical Lloyd shaved 5GHp to close the week at 33GHp. PZ Cussons, Benso Oil and Enterprise Group were also under selling pressure shedding two pesewas each. PZ Cussons was down to 77GHp while Benso and Enterprise group closed at GH?3.19 and GH?1.86. Ayrton Drugs and Ecobank Transnational Incorporated dropped a pesewa each to close at 17GHp and 23GHp.

On the strength of advancers, the benchmark Composite Index (CI) added 2.78 points to close at 2,186.94, representing a year to date return of 1.95%.

The Financial Index (FI) also bagged 2.13 points to close at 1,847.22. This brings its return this year to 3.39%.

Trading Activity

A total of 4.79M shares valued at GH?8.8M were exchanged in twenty-two equities compared with the previous week?s volume of 2.6M shares, valued at GH?3.9M.

SIC Insurance, CAL Bank and Fan Milk were the most traded stocks accounting for 81.4% volume and 60.9% value.

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Outlook

We expect the market to sustain its upward drive in the coming week judging from the trend observed this week. Stocks likely to provide the drive include Stanchart, Fan Milk, Ecobank Ghana, Ghana Commercial Bank and CAL Bank.

On the flip side we expect equities like Benso Oil, Ecobank Transnational Incorporated and Guinness Ghana to lose some grounds as some investors seek bargain deals.

Four more listings expected this year -GSE

The Ghana Stock Exchange (GSE) has noted that some additional listings will be seen on the stock market this year. A total of 34?companies are currently listed on the bourse after its existence for 23 years.

Potential companies expected to issue their IPOs for both the GAX and the main board include: Mega African Capital (a fund); Processed Food & Spices Ltd; Meridian Marshalls Ltd; Juaben Oil Mills; Intravenous Infusions Ltd; DanAdams Pharmaceuticals; Vanguard Assurance Ltd; and Agricultural Bank Ltd.

End year inflation target missed?

According to figures released by the Statistical Service on Wednesday, the country recorded a 13.5 percent inflation?rate for December 2013, up from 13. 2 recorded in November. The Government thus did not achieve its end of year inflation target for 2013.

Facts accounting for the increase include demand pressures emanating from monetization of fiscal deficits, exchange rate depreciation, surging utility tariffs and transport costs which have been piling pressure on workers? income.

The 91 and 182-day bills edged higher at the auction held last Friday, 2014. The 1-Year and 2-Year Notes however remained unchanged.

The 91 and 182-day bills edged up from the previous week?s 19.23% and 19.18% to 19.41% and 19.24% respectively.

On the other hand, the 1-Year and 2-Year Notes were stable at 17.0% and 16.50% respectively as investors continued to lock-in rates for the long term.

Though the Central Bank had targeted GH?490M in short term bills and notes, bids of GH?521.72 submitted by dealers were accepted. At the next auction to be held on January 17, 2014, the Bank Of Ghana hopes to raise GH?633 million in Short term and Medium term securities.

Forex market

On the forex market, the Cedi failed to recover from last week?s slide depreciating against all the major currencies.

The local currency slipped by 1.30% against the Dollar with dealers? rates averaging GH?2.30 on Friday.

Against the Euro and the Pound, the Cedi closed the week lower, shedding 1.44% and 0.55% to GH?3.12 and GH?3.75 respectively.

Against the Swiss Franc and South African Rand, the Cedi also slipped by 1.63% and 0.31%? with midrates by interbank traders hovering around GH?2.53 and GH?0.21 respectively.

Source Merban Stockbrokers Ltd