Bids and Offers

Trading activity at the week?s opening session was impressive with gains in four banking stocks helping the indices end day in the green.

Societe Generale led movers climbing 4GHp to 73GHp. HFC Bank, Ghana Commercial Bank and Ecobank Ghana added a pesewa each to GH?1.33, GH?4.09 and GH?6.31 respectively.

On the other hand, Stanchart and Benso Oil Palm were under selling pressure dropping 6GHp and 4GHp to GH?18.44 and GH?2.36 respectively; Fan Milk and Total Petroleum also shaved 3GHp and 2GHp to GH?7.40 and GH?6.40 respectively while Mechanical Lloyd slipped to 33GHp from 34GHp.

At the close of the session seventeen equities had their shares changing hands with a total volume of 341,419 shares valued at GH?2.22 million being recorded.

On the back of the foregoing the broader market Index (CI) appreciated by 1.57 points to 2,247.62. This brings its year-to-date return to 4.77%.

The Financial Stocks Index (FSI) also climbed 3.81 points to 1,907.86 representing a year to date return of 6.79%.

Bids and Offers?Outlook

We do not foresee a change in recent trends in the days ahead. With quarterly results giving a boost to the multiples of listed some key stocks making them attractive buys; we expect further gains in the days ahead. Strong demand may thus see Societe Generale, Ecobank Ghana, Ghana Commercial Bank and HFC Bank edging higher.

On the other hand, Stanchart, Total Petroleum, Fan Milk and PZ Cussons closed the session with outstanding offers. This development may put their prices under pressure

AngloGold Ashanti, Africa’s top gold producer is looking to slash its exploration budget to between $150m and $175 million this year from $400m in 2013. According to its chief executive Venkat, the, this move is to focus on a few key projects as well as restructure and lay off staff at the Obuasi mine.
The group reported a rise in first-quarter earnings compared to the same period last year as it cut costs and lifted production. Earnings for the first quarter totalled $119m, or USD 0.29 per share, compared with $113m in 2013.

Output for the quarter fell to 1.06 million ounces from around 1.3 million ounces in the previous quarter. But year-on-year output rose 17% as operations outside of South Africa ramped up.

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.

The Cedi was downbeat at the week?s opening session as it depreciated against the Dollar, the Pound and the Rand. It however appreciated against the Euro and the Swiss Franc.

The local currency depreciated marginally by 0.03% against the green back to close at GH?2.88 today.

The recent turnaround of the British economy continued to offer support to the Pound; it ascended against the local currency. The Cedi as a result lost 0.22% against the Sterling to close at GH?4.85.

The Cedi also slipped against the South African Rand dropping 0.52% to GH?0.28.

The Cedi however bucked the trend against the Euro and the Swiss Franc appreciating 0.11% and 0.20% against the two currencies respectively. Traders on the interbank market quoted GH?3.95 and GH?3.23 for the Euro and the Swiss Franc.

Source Merban Stockbrokers Ltd

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