At the close of the week, the indices recorded contrasting fortunes as five equities registered gains while four others slipped.

Stock marketWeighed by the laggards, the benchmark Composite Index (CI) trimmed 12.72 points to 2,216.87. The return on the CI however remains positive with a year to date gain of 3.34%.

The Financial Stocks Index (FSI) however appreciated by 1.95 points, recovering from last week?s slide to 2,138.44. This outturn saw the FSI post a year to date gain of 19.69% at the week?s ending session.

What Moved

Stanchart was biggest gainer in the week under review bagging 11GHp to GH?18.40. Benso Oil Palm and CAL Bank were also in demand edging up 3GHp and 2GHp to GH?3.78 and 97GHp respectively. Ecobank Transnational Incorporated and SIC Insurance completed the list of advancers inching up a pesewa each to 31GHp and 45GHp respectively.

On the other hand, Unilever was under pressure giving up GH?1.24 to GH?14.50. HFC Bank also ended the week trimming 5GHp to GH?1.30. Other decliners were PZ Cussons and UT Bank; each slipped a pesewa to close at 39GHp and 25GHp respectively

Trading Activity

Volume and turnover lower compared figures registered during the previous week. A total of 845,546 shares changed hands in twenty-three equities. This compares to the 1.64M shares that were exchanged the previous week.

Turnover for the week came up to GH?723,092 as against the GH?3.83M recorded last week

Outlook

We do not expected to see a marked change in trends in the week ahead as investor?s tread cautiously in wait for the release of the nine months earnings results. We however still see opportunities on the market for both the short term and the long term investors.

Ecobank Ghana, Stanchart, SIC Insurance and Benso Oil Palm had bids exceeding offers at most sessions of the week. We foresee their prices climbing higher in the week ahead.

Unilever and PZ Cussons may however tick lower as some investors look to exit positions.

The Central Bank could not achieve its target amount at the auction held last Friday October 10, 2014 as bids submitted by dealers were lower. The short dated rates were also marked down marginally while the long dated securities remained unchanged.

At the end of the auction, the 91-day bill retreated to 25.69% from 25.71% the previous week. The 182-day bill also shaved 2 basis points to 26.39%.? Meanwhile, the 1-year and 2-year notes remained firm at 22.50% and 23.00% respectively.

A total amount of GH?719.85 million was raised by the Bank of Ghana in bills and notes, 9% lower than the targeted amount of GH?793 million. Total bids submitted by dealers amounted to GH?720.29 million.

In the week ahead, market analysts expect rates to remain within current levels as we do not foresee any significant changes in the economy?s key indicators.

The performance of the Cedi on the forex market this week was mixed as it appreciated against the Dollar and the Pound but lost grounds to the Euro, the Swiss Franc and the Rand.

The Cedi recorded a marginal gain of 0.01% against the greenback to end the week at GH?3.20.

The local currency rose by 0.75% against the Pound after the drop in UK?s inflation rate to 1.2% in September pushed back expectations of a rate hike by the Bank of England. The week thus ended with dealers quoting GH?5.12 for the Sterling on the interbank market.

The local currency however depreciated against the Euro although disappointing German inflation weighed on the shared currency globally. The Cedi shaved 0.71% at a week ending rate of GH?4.09.

The Cedi was also down against the Swiss Franc and the South African Rand. Quotes by traders on the interbank market averaged GH?3.39 and 29GHp on Friday, representing a loss of 1.02% and 0.4% respectively.

Source Merban Stockbrokers Ltd

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