Six equities were in a bullish mood this week but the search for bargain deals and profit taking resulted in six other equities shedding some gains this week.
The indices on the back of the laggards ended the week lower, unable to recover from last week’s reverse.
At the close of the weeks ending January 30, the benchmark Composite Index (CI) had shaved 9.29 points to 2,173.95. The CI remained in the negative territory with a year-to-date change of negative 3.85 per cent.
The Financial Stocks Index (FSI) also backtracked, shedding 13.60 points to 2,140.16. This brings its year to date return to negative 4.61 per cent.
Movements in the week
CAL Bank clawed back some of the week’s losses as it added 5Gp to GH¢1, while Standard Chartered Bank also gained 2Gp to GH¢20.08. Four other equities ended the week a pesewa higher. Aluworks and UT Bank climbed to 3Gp and 21Gp respectively, as Ghana Oil and Benso Oil Palm also rose to GH¢1.08 and GH¢4.11 respectively.
On the other hand, GCB Bank led decliners in the week under review, trimming 11Gp to GH¢4.95.
Ecobank Ghana, on the back of selling pressure, also shed 4Gp to GH¢7.30. While SIC Insurance, weighed by management issues, gave up 3Gp to 25Gp.
Three other decliners also shaved a pesewa each; Societe Generale, Ecobank Transnational Incorporated and PBC Limited ended the week at GH¢1.06, 24Gp and 11Gp respectively.
Trading activity
With most investors finding matching offers at best prices for their bids, volume and turnover this week exceeded the previous week’s figures. Trades in CAL Bank gave a boost to activity on the bourse; it accounted for 64.5 per cent of total volume.
In all, a total of 2.86 million shares valued at GH¢6.59 million were exchanged in 23 equities.
Outlook
In the Feb 2-6 week, analysts at UMB Stockbrokers do not foresee any significant changes in trading activity. The brokers expect the selling pressure to ease in GCB Bank and Ecobank Ghana.
Renewed interest and anticipated advances in CAL Bank may drive market activity. Stocks expected to also head northward on the back of investor demand include Benso Oil Palm and Societe Generale.
Money market
On the money market, the 91-day bill retreated marginally at the auction held on January 23. The 182-day bill and the long term treasury notes however remained unchanged.
The 91-Day bill closed at 25.83 per cent, trimming a basis point from last week’s 25.84 per cent.
On the other hand, the 182-Day bill was unchanged at the previous week’s rate of 26.41 per cent. The one-year and two-year notes were also stable at previous week’s levels of 22.50 per cent and 23 per cent respectively.
A total of GH¢1,170.42 million was raised by the bank of Ghana, 24 per cent above its target of GH¢946 million.
The cedi struggled to maintain a firm position on the currency market in the week under review; it lost its lustre against the dollar, the pound and the South African rand. The local currency, however, remained firm against the euro and the Swiss franc.