Trading activity on the bourse was mixed during the week under review. Seven equities registered gains while eleven others slipped. The indices as a result closed the week in different directions.
The Financial Stocks Index (FSI) on the strength of the advancers bagged 12.72 points to 1,916.77. The return on the FSI as a result rose to 7.29%.? The benchmark Composite Index was however held back by laggards shedding 2.35 points to 2,243.70; with its year to date change at 4.59%.
Movers and shakers
Societe Generale led movers as it jumped 20.3% to 83GHp; SIC was also in demand leaping 5.7% to 37GHp while TBL clawed back the 1GHp (4.2%) it lost a week ago to 25GHp. Other advancers were EBG and GCB which edged up 2.5% each to GH?6.46 and GH?4.18 respectively. HFC Bank and CAL completed the list closing the week at GH?1.34 and 88GHp.
On the other hand, TOTAL, Unilever and Fan Milk were some of the equities under pressure sliding to GH?6.40, GH?17.98 and GH?7.35; Stanchart, Benso Oil Palm, and Guinness dropped to GH?18, GH?2.35 and GH?5.58 while Mechanical Lloyd, UTB Bank and Enterprise Group were down to 33GHp, 38GHp and GH?2.0 respectively. PBC and African Champion completed the list easing to 13GHp and 3GHp respectively.
Trading Activity
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In all twenty five equities had their shares changing hands with a total volume of 4.43 million shares valued at GH?5.81 million being recorded. African Champion was the most traded stock accounting for 58% of total volume.
Outlook
In the coming week we expect investor interest to continue building-up as attractively priced stocks have been in demand. We thus see Ghana Commercial Bank, Ecobank Ghana and Societe Generale extending gains. Guinness Ghana, Enterprise Group and Fan Milk may however be amongst the stocks under selling pressure due to profit taking
Ghana Oil (GOIL) has announced a final dividend of GH?0.016 per share in respect of the financial year ended December 31, 2013. Shareholders registered in the books of GOIL at the close of business on Wednesday, June 11, 2014 will qualify for the dividend.
The board of directors of Total Petroleum (TOTAL) will also be proposing to shareholders a final dividend of GH?0.0985 per share before tax in respect of its financial year ended December 31, 2013. Shareholders registered in the books of TOTAL at the close of business on Wednesday, June 11, 2014will qualify for the final dividend.
On the forex market, the local currency enjoyed a mixed week as it appreciated against the Euro and Swiss Franc. It was however on the back foot against the Dollar, Pound and the South African Rand.
The Cedi was up by 0.33% against the Euro as weak German business sentiment increased expectations of further policy easing by the European Central Bank. Additionally, political uncertainty ahead of the European Parliamentary elections weighed on the single currency. Rates on the interbank market averaged GH?3.9 at the week?s close.
The local currency was also up by 0.42% against the Swiss Franc during the week with bankers? rates averaging GH?3.23 on Friday.
The local currency however slipped against the Dollar with strong U.S. housing and factory activity data, which lifted U.S. bond yields boosting demand for the greenback. The Cedi shaved 0.20% against the Dollar with average rates of GH?2.88 being quoted on the interbank market.
The local currency was also down against the Pound Sterling and the South African Rand, shedding 0.58% and 0.72% to GH?4.86 and 0.28 respectively.
Yields on treasury securities edged lower at the auction held last Friday May 19, 2014 as dealers quoted lower rates on their bids.
The yield on the 91-day bill shed a basis point to close at 24.05%. The 182-day bill also lost 3 basis points to 21.28%. The 1-year and 2-year notes however remained unchanged at the prior week?s rates of 22.50% and 23.00% respectively.
Total bids submitted by dealers for bills and notes amounted to GH?576.63 with the Central Bank accepting GH?551.60M. We do not foresee a change in rates in weeks ahead in view of the current inflationary conditions.
