Decliners had the edge once again as trading activity on the stock market closed the week on a low note. Six equities registered gains while eight others slipped weighing on the indices.
The benchmark Composite Index dropped 4.52 points to 2,381.87, corresponding to a year to date return of 11.03%.
The Financial Index (FSI) under pressure from four banking stocks also shaved 13.32 points to close at 2,079.43. This brings its year to date return to 16.39%.
Movers and shakers
Fan Milk extended its rally this week adding 10GHp to GH?7.55. This was followed by Benso Oil Palm, it clawed back the nine pesewas it lost last week to close at GH?30.10 Demand for Ghana Oil and Total Petroleum shares resulted in gains of 4GHp and 5GHp respectively to 85GHp and GH?6.55. HFC Bank also climbed to GH?1.22 from GH?1.20 while Produce Buying Company added a pesewa to close the week at 17GHp.
On the flip side, Tullow Oil led decliners this week, it shaved 16GHp to GH?30.09. With Stanchart and Ecobank Ghana still reeling from profit taking, the week ended with their share prices? trimming 9GHp and 2GHp respectively to GH?19.89 and GH?7.13.
CAL Bank, Guinness Ghana and UT Bank also shed 5GHp, 3GHp and 2GHp respectively on the back of selling pressure.? CAL Bank and Guinness Ghana closed at 93GHp and GH?5.87 respectively while UT Bank stood at 41GHp. Mechanical Lloyd? and Ghana Commercial Bank completed the list with a pesewa loss each to end the week at 34GHp and GH?4.08 respectively.
Volume and value of shares traded were impressive compared that of the previous week. A total of 2.66 million shares valued at GH?6.85 million were recorded.
In the coming week we expect advancers to keep the indices steady. Stocks likely to register gains include Fan
Milk, HFC Bank and Ghana Oil.? On the flip side, Stanchart and UT Bank may come under selling pressure. On the back of the foregoing, we look forward to advancers keeping the indices steady.
Short term rates maintained their northward drive at the auction held last Friday March 28, 2013 as investors sought higher premiums on their investments.
The yield on the 91-day bill added 18 basis points to close at 23.69%. The 182-Day bill also gained 4 basis points on the previous weeks 21.21% to 21.24%.
The 1-year and 2-Year Notes were however unchanged from the previous week?s levels of 22.50% and 23.0% respectively.
A total of GH?578.83 million bids were tendered by dealers of which GH?558.43 million were accepted by the Central Bank.
At the auction to be held on Friday April 4, 2014 the Bank of Ghana hopes to raise GH?477 million. Rates are expected to head higher as bid rates at the last auction ranged between 15.0% and 24.50%
On the currency market, although the Bank of Ghana decided to keep the policy rate at 18%, the Cedi struggled for stability as it depreciated against all the major trading currencies this week.
The Cedi slipped against the Dollar which was given a boost by a rise in U.S. manufacturing index from 53.2 in February to 53.7 in March. The local currency as a result gave up 1.99% against the greenback to trade at an average rate of GH?2.67.
The week under review saw the Euro-zone inflation rate dropping from 0.7% in February to 0.5% in March, strengthening deflation worries and adding to pressures on the European Central Bank to ease its monetary policies. However a drop in Spain?s unemployment rate gave a boost to the Euro against the Cedi. Rates by bankers for the shared currency versus the Cedi averaged GH?3.67.
Against the Pound Sterling and the Swiss Franc the local currency gave up 2.62% and 1.63% to close at GH?4.44 and GH?3.01 respectively.
Dealers on the interbank market also paid more for the South African Rand with buying and selling rates averaging GH?0.25, 4.74% increase from last week?s rate.
Source Merban Stockbrokers Ltd