Ten equities gave the bourse a big boost during the week with the indices defying any form of decline.
The benchmark Composite Index (CI) as a result rose 30.47 points to close the week at 1,965.55 points. This gain saw the year-to-date return of the CI improve to 64.65 per cent.
The Financial Stocks Index (FSI) was also bullish as it jumped 36.44 points to close the week at 1,717.23 points. The return on the financial index stands at 66.22 per cent.
Enterprise Group led movers leaping by 50GHp (33%) to close the week at GH¢2.02. Benso Oil Palm and Ghana Commercial Bank followed climbing 27GHp and 20GHp to GH¢3.97 and GH¢5.14 while Tullow Oil and PZ Cussons added 5GHp and 4GHp to GH¢31.05 and 46GHp respectively.
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Mechanical Lloyd was up 3GHp to 29GHp while four others ETI, GOIL, Guinness and Unilever inched up to 20GHp, 81GHp, GH¢4.51 and GH¢15.11 respectively.
On the other hand, Standard Chartered trimmed 5GHp to GH¢14.45 while CAL Bank trimmed a pesewa to GH¢1.16.
In all 23 equities had their shares changing hands with a total volume of 2.12 million shares valued at GH¢2.56 million was recorded.
Trends during the week point to the market sustaining gains in the days ahead with bids outstripping offers in most equities.
With the recent earning results giving investors a lot to digest one foresees the increased demand putting upward pressure on shares.
Stocks expected to be under investors’ radar include Ghana Commercial Bank, Ecobank Ghana and BOPP. Societe Generale and CAL are also expected to edge higher while SIC Insurance and GOIL are likely to remain firm as their current prices have seen demand building-up for their shares.
Short term rates were under pressure at the auction on August 2. With funds from the recent Eurobond issue expected to hit the nation’s coffers, the Central Bank had the strength to reject higher bids.
The 91-day bill trimmed four basis points to close the auction at 22.99 per cent. The 182-day bill also lost 27 basis points to 22.63 per cent. The 1-year and 2-year notes were,, however, unchanged at the previous week’s 22 per cent.
A total of GH¢547.88 million was raised by the BoG in bills and notes. This was 52 per cent higher than the target of GH¢361 million. Rates are expected to shed grounds in the coming auctions with traders likely to bid lower.
Foreign exchange market
The cedi was under pressure last week failing to hold onto gains registered the previous week.
The Cedi failed to take advantage of investor worries over plans to taper the stimulus programme which weighed on the dollar during the week. The local currency slipped 0.05 per cent against the green back to close the week at GH¢1.99.
Improved industrial production figures in Germany and Britain gave the Euro and the Pound Sterling a boost against the local currency.
The Cedi dropped by 0.94 per cent and 2.59 per cent during the week under review. Average rates for the Euro and the Pound on Friday stood at GH¢2.66 and GH¢3.09 respectively.
Against the Swiss Franc and the South African Rand the local currency lost 1.58 per cent and 0.80 per cent with traders on the interbank market quoting GH¢2.16 and GH¢0.20 for the Swiss Franc and Rand respectively.
source Merban Stockbrokers Ltd/Graphic Business