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The total volume of trade stood at 1.48 million shares for the week, a 53.45 per cent decline from last week’s trading
The total volume of trade stood at 1.48 million shares for the week, a 53.45 per cent decline from last week’s trading

Fiscal consolidation gains exert downward pressure on treasury securities

Government treasury securities witnessed marginal changes in the yields of the 91-Day and 182-Day bills but the yield on the two-year note remained unchanged at 24 per cent.

The rate on the 91-Day treasury bill dropped by 0.02 per cent to 22.85 per cent, while the yield on the 182-Day treasury bill also softened to 24.54 per cent, down by 0.15 per cent.

The government accepted a little above GH¢1.35 billion out of GH¢1.65 billion worth of bids tendered at auction on October 7. The total amount, however, exceeded the GH¢950 million target.

GSE-CI sheds points

The stock market failed to rise at the first trading week of October as selling pressure in seven equities weighed on the indices. The benchmark Composite Index (GSE-CI) stood at 1,768.04 at the end of the week, shedding 39 per cent from its opening value to a negative year to date of 11.37 per cent.

The financial stocks index (GSE-FSI) also lost 0.46 per cent to settle at 1,674.92 points, representing a year-to-date loss of 13.22 per cent.

The total volume of trade stood at 1.48 million shares for the week, a 53.45 per cent decline from last week’s trading. Total value was also lower at GH¢1.11 million.

UT Bank closed the week as the most traded stock as it accounted for 54.34 per cent of the week’s trading volume. Guinness Ghana Brewery Limited, the second most traded stock which accounted for 26.26 per cent of the traded volume, closed the week with the highest value of shares traded, with 61.26 per cent of the week’s total value.

 The week under review ended with 12 price movers on the equity market; five gainers and seven losers. Ghana Commercial Bank, Fan Milk Limited and Cal Bank gained 2Gp over their corresponding opening prices to GH¢3.95; GH¢9.80; and 78Gp respectively.

Aluworks and PZ Cussons closed the cluster of winners adding a pesewa to trade at 14Gp and 23Gp respectively.

On the other side of the market, Total Petroleum Ltd emerged as the worst perfoming stock as it lost 10Gp over its opening price and traded at GH¢2.30. This brings its year-to-date losses to 54.90 per cent.

Benso Oil Palm Plantation and Ecobank Ghana Limited shed 2Gp each to trade at GH¢2.41 and GH¢2.38 respectively. Ecobank Transnational Inc., Ghana Oil, StandChart, and Unilever Ghana Ltd lost a pesewa each to conclude the list of decliners for the week.

Currency market

The local currency strengthened against the Pound Sterling last week as fears over Brexit move continued to cloud investor confidence. The Pound Sterling slumped by 3.99 per cent to end the week’s trading at GH¢4.95, pitching its year-to-date depreciation at 11.93 per cent.

The local currency came out strongly against the Euro at the close of last week’s currency trading. The local currency appreciated by 0.38 per cent against the Euro, reducing its year-to-date losses to 7.39 per cent.

 The U.S dollar strengthened marginally against the local currency as stronger-than-expected economic data on the U.S services sector lifted the strength of the dollar marginally. This brought the year-to-date depreciation of the local currency to 4.66 per cent to the dollar.

Commodities

The Brent crude eased to US$52.35 on the back of falling U.S crude inventories. The black gold gained 6.71 per cent after the US Energy Information Administration (EIA) announced that its crude stockpiles had fallen by  three million barrels to 499.74 million barrels.

The Brent was steady above $50 a barrel, as planned production cut by OPEC supported the black gold.   

Gold price reacted negatively on the commodities market to a strengthening dollar. The bullion further came under pressure following hawkish comments from the U.S Federal Reserve and European Central Bank, causing investor to exit their bullion holdings.

The safe-haven commodity touched a fresh low of US$1,264.70 as the US services sector activity rebounded to an 11-month high in September.

Coffee price lost its buoyancy. The soft-crop settled down at 1.81 per cent lower to trade at US$1.488.

Cocoa prices turned higher, supported by a weak pound as reluctance of exporters and bankers provision of credit lines to local cocoa exporters raised the prospects of contract defaults.

The soft-crop gained 1.27 per cent to trade at US$2,796 per tonne in the aftermath of heavy rains in most of Ivory Coast’s main cocoa growing regions, which boosted crop development but caused some fear of flooding and disease in some farmers as they begin the next season’s harvest.

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