Nine stocks lift market
Nine equities gave the bourse vigour during the week ending November 14, with the indices defying declines in four others to recover from the previous week’s slide.
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The benchmark Composite Index (CI) as a result clawed back 31.32 points to close the week at 2,260.17. This gain saw the year-to-date return of the CI increase to 5.36 per cent.
The Financial Stocks Index (FSI) also rallied climbing 42.0 points to close the week at 2,223.72. The return on the financial index stands at 24.47 per cent.
Movements
Standard Chartered Bank and Ecobank Ghana gained momentum in the week under review, leaping GH¢1.01 and 17Gp respectively to close at GH¢20.02 and GH¢7.30.
HFC Bank and Fan Milk followed by jumping 5Gp each to close at GH¢1.30 and GH¢4.95 respectively.
Benso Oil Palm and Total Petroleum also added 2Gp each to GH¢4.02 and GH¢6.12 respectively.
Three others traded a pesewa higher each; Societe Generale and Guinness Ghana ended the week at 86Gp and GH¢3.16 respectively, while GCB Bank climbed to GH¢5.30.
On the flip side, four equities were under pressure. Unilever and Enterprise Group saw their share prices trim 9Gp each to GH¢12.40 and GH¢1.41 respectively.
SIC Insurance also shaved 3Gp to 38GHp. UT Bank completed the list of laggards, sliding a pesewa to close at 25Gp.
Trading activity
Volume and value of shares exceeded the previous week’s figures significantly driven by big ticket transactions in CAL Bank, Enterprise Group and Ecobank Ghana, altogether accounting for 96 per cent of total volumes traded.
In all, 24 equities had their shares changing hands with a total volume of 43.31 million shares valued at GH¢49.68 being recorded.
Outlook
We expect the financial stocks to be in demand in the coming week. Stanchart, Ecobank Ghana and GCB Bank are expected to edge higher while SIC Insurance, Unilever and PZ Cussons are likely to drop as selling pressure weighs on their prices.
Money market
Yields on treasuries edged lower at the auction held on November 07. The yield on the 91-and 182-day bills shed three basis points each to close at 25.77 per cent and 26.37 per cent respectively.
The one-year and two-year notes, however, remained unchanged at the prior week’s rates of 22.50 per cent and 23 per cent respectively.
Total bids submitted by dealers for bills and notes amounted to GH¢793.46 million with the central bank accepting GH¢791.66 million.
Foreign exchange market
With the decision by the Monetary Policy Committee (MPC) of the Bank of Ghana to raise the policy rate to 21 per cent failing to sustain the Cedi in the week ending November 14, the local currency depreciated against some of the major trading currencies. It, however, clawed back some gains against the Pound.
The Cedi backtracked by 0.09 per cent and 0.44 per cent against the Dollar and the Euro closing the week with average rates of GH¢3.20 and GH¢3.99 quoted by dealers respectively.
The local currency also depreciated by 0.58 per cent against the Swiss Franc with dealers on the interbank market quoting week ending rates of GH¢3.32.
The Rand appreciated by 0.14 per cent against the Cedi this week given support by South African statistics which showed an eight per cent increase in manufacturing production in September and 2.3 per cent growth in retail sales. Traders on the interbank market thus paid an average rate of 28Gp for the Rand.
The Cedi however, strengthened against the Pound following reports of the Bank of England (BoE) leaving interest rates stable at a record low of 0.05 per cent in their latest economic outlook. The local currency, rallied 0.50 per cent this week to close at GH¢5.04 against the Pound. UMB Stockbrokers/GB
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