The stock market’s two-week rally fizzled last week as gains in Mega African Capital (MAC), Societe Generale, Enterprise Group and five others were unable to push the indices higher.
Declines in six equities thus weighed on the benchmark Composite Index, which lost 18.05 points to close the week at 2,266.92 points.
Its year-to-date return, however, remained positive at 5.67 per cent.
The Financial Stocks Index (FSI) was also down 5.39 points to close the week at 2,252.46.p points. The return on the financial index stands at 26.08 per cent.
Movers
MAC was the biggest gainer this week, climbing 50GHp to GH¢4.50. Stanchart continued its upward drive, rising 38GHp to close at GH¢20.72 while Fan Milk and GCB Bank followed, adding 13GHp and 8GHp to close at GH¢5.10 and GH¢5.45 respectively.
Enterprise Group and Societe Generale also increased by 7GHp and 6GHp to GH¢1.64 and 93GHp respectively. Guinness Ghana and Benso Oil Palm completed the list, inching up by 4GHp and 2GHp to close at GH¢3.20 and GH¢4.04 respectively.
On the flip side, Unilever was under pressure, sliding GH¢1.57 to GH¢10.80; Ecobank Transnational Incorporated and Total Petroleum shaved 3GHp and 2GHp to close at 30GHp and GH¢6.10 while three others ended the week down a pesewa each.
SIC Insurance, Mechanical Lloyd and Produce Buying Company eased to 37GHp, 25GHp and 13GHp respectively.
Trading and outlook
Volume and value of shares traded during the week were higher than that of the previous week. A total of 2.94 million shares valued at GH¢11.99 million were exchanged in 30 equities.
Looking forward, we anticipate moderate activity levels in this week. The indices are, however, expected to recover from this week’s decline on the back of expected advances in some blue chip companies.
Investors’ bids for Stanchart, GCB Bank, Ecobank Ghana and Societe Generale are projected to be higher next week. Fan Milk and Guinness Ghana may also appreciate as sellers quoted higher prices for the shares.
In spite of excess offers in Ghana Oil and HFC Bank, we expect their prices to remain steady as sellers were not prepared to offload their shares below the current market price. UT Bank and Unilever may ease on selling pressure.
The 91 and 182-day bills backtracked at the auction held last Friday 21st November, 2014; the 1-Year and 2-Year notes however remained unchanged.
Inflation, Policy and Money Market Rates
Money market
The 91-day bill shed 24 basis points to 25.56 per cent while the 182-day bill eased to 25.99 per cent from 26.38 per cent.
The 1- Year and the 2-Year notes were steady at the previous week’s rate of 22.5 per cent and 23 per cent respectively.
A total of GH¢1.4 billion was raised by the Bank of Ghana (BoG) in bills and notes. The amount was 58 per cent above the bank's target of GH¢893 million.
Foreign exchange market
On the currency front, the Cedi rallied during the week to close stronger against the Dollar, Euro and Swiss Franc. It, however, slipped against the Pound and the Rand.
The confirmation by the U.S Federal Reserve to begin increasing interest rates in the middle of 2015 failed to give the greenback an edge against the Cedi.
The Ghanaian currency climbed 0.06 per cent against the Dollar with rates by bank traders averaging GH¢3.20.
Encouraging data from Europe's biggest economy, Germany, boosted Euro zone optimism. However, the Cedi recovered some of last two week’s losses.
It appreciated by 0.50 per cent against the Euro to change hands at GH¢3.99.
The Cedi improved against the Swiss Franc, climbing 0.58 per cent with average rates by bankers on November 28 at GH¢3.32.
Despite the 0.18 per cent and 0.3 per cent increase in South Africa’s October Consumer Price Inflation and Producer Price Index respectively, falling oil prices lifted South Africa's economy. The Cedi, as a result, slipped by 0.27 per cent against the Rand to close the week at GH¢0.29.
It also trimmed 0.14 per cent against the Pound although data showed a decline in U.K house-prices growth and consumer confidence last week. Rates by dealers on the interbank market averaged GH¢5.04 at the week’s close.