GSE extends bullish run
The week ended with the equity market extending its bullish run after registering fresh records for the two indices.
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The GSE Composite Index rose by 4.79 per cent to an index level of 2,086.38 points. This brought its year-to-date gain to 23.52 per cent.
The GSE Financial Stock Index also advanced by 5.99 per cent to 1,964.80 points, corresponding to a year-to-date return of 27.14 per cent.
Generally, trading activities on the bourse were more exciting in the week ending July 14 compared to the previous week.
A total volume of 2.20 million shares were traded, representing a weekly increase of 86.49 per cent.
The week’s trade was valued at valued at GH¢8.13 million.
At the end of the week’s trading, CAL Bank Ltd, Ecobank Transnational Incorporated, Standard Chartered Bank, UT Bank and GCB Bank dominated market activities, accounting for 73.84 per cent of the total traded volume.
Market capitalisation also advanced by 1.02 per cent to close at GH¢60.43 billion.
Price movements
Ten equities witnessed price movements, with nine stocks closing higher against a lone laggard.
Following consistent demand for stocks of Standard Chartered Bank, its price per share rose by GH¢4.13 to close at GH¢21.95 per share. Fan Milk appreciated by 42 pesewas to close trading at GH¢12.28 per share. Access Bank Ghana Plc, Benso Oil Palm Plantation and HFC Bank Ltd gained 18 pesewas, 11 pesewas and 12 pesewas to trade at GH¢3.98, GH¢4.52 and 68 pesewas per share respectively.
Other advancers for the week were Enterprise Group Ltd, Ghana Oil Company Ltd, Societe Generale Ghana Ltd and Starwin Products Ltd.
Treasury market
The week’s auction ended with the yield on the 91-Day T-Bill rising by 88 basis points (bps) to settle at 12.55 per cent.
The 182-Day T-Bill, on the other hand, declined by four bps to settle at 13.04 per cent. The yield on the 1-Year note was, however, unchanged at 15 per cent.
Out of the GH¢1.09 billion bids tendered, the government accepted only GH¢1 billion worth of bids.
The 91-day and 182-day treasury securities were the most purchased bids; they constituted 93.93 per cent of the total accepted bids.
The total purchase was, however, below the government’s expectation of GH¢1.2 billion.
In the next auction scheduled for July 21, the government expects to raise GH¢1.11 billion through the 91-Day and 182-Day treasury securities and GH¢300 million from the 3-Year Bond.
The yield curve sustained the normality albeit the rate adjustment on the short-dated treasury securities.
The current trajectory in the yields of the securities is generally expected to stimulate growth as it aids in reducing cost of borrowing to fuel productive spending in the economy.
We foresee the regularity of the yield curve being sustained, especially in the short-term.
