Five equities give lift to market indices

Five advancers gave a lift to the market during the week under review, helping the indices to bounce back from last week’s slide. Volume traded and turnover were however significantly lower than those of the previous week.

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stock market
stock market

The broader market index as a result gained 4.10 points from 2,000.02 to 2,004; reaching a year-to- date yield of 0.46%.

stock market
stock market

The Financial stocks Index, which tracks the performance of the banking and insurance sector also appreciated by 5.03 points from 1,936.53 to 1,941.56; bringing its year-to-date return to 0.60%.

What Moved This Week Benso Oil Palm led movers, increasing by 5GHp to GH¢3.05; SIC Insurance followed, bagging 4GHp to 19GHp.

The other advancers gained a pesewa each; Ecobank Transnational Incorporated, Societe Generale and Ghana Oil closed trading at 26GHp, 83GHp and GH¢1.45 respectively.

On the other hand, HFC Bank and CAL Bank dropped 5GHp to GH¢1.05 and GH¢1.00 respectively. Tallow Oil also dipped by a pesewa to GH¢27.99

Trading

The week under review saw volume traded and turnover of trades relatively lower than those of the previous session. In all, 1.16 million shares exchanged hands. This compares to last week’s 3.71 million shares. Value traded in the week amounted to GH¢6.43 million as against the GH¢10.44 million recorded last week.

adb has re-opened its IPO which is running from December 23, 2015 to February 26, 2016. A share is priced at GH¢2.65 with a minimum purchase of 100 shares (GH¢265).

Outlook

Trading activity in the week ahead may see Benso Oil Palm and HFC Bank gaining grounds as buyers quoted appealing prices on their bids. Societe Generale may also register gains on the back of impressive bids. On the flip side, selling pressure in CAL Bank and Ghana Oil may see them close on the back foot.

On the money market, the 91- Day bill and the 182-Day bill edged higher at the end of the auction held last Friday, January 22, 2016 but the long term notes remained stable.

Money Market

The 91- Day bill appreciated by 2 basis points from 22.63% to 22.65%; the 182-Day bill also gained 7 basis points to 24.45%. The long term notes however remained unchanged at their previous levels of 23.00% and 23.30% respectively.

 

The Bank of Ghana raised a total of GH¢973.33 million from bills and notes. This was below its initial target of GH¢1.31 billion.

The Central Bank expects to raise GH¢1.02 billion at the auction to be held on Friday, January 29, 2016.

Currency Market

On the currency front, the local currency recorded week performance during the period under review, falling in the red against all the major trading currencies.

It tumbled against the Dollar, despite weak data released by the U.S. Commerce Department, which showed a dip in U.S. durable goods orders and underlined slow down in the U.S. manufacturing sector.  The local currency slipped by 0.42% and traded at GH¢3.83 against the Dollar.

Against the Euro, forex dealers quoted an average of GH¢4.18, equivalent to a week-on-week depreciation of 1.24% against the shared currency.

The Cedi also trimmed against the sterling which advanced versus a basket of currencies, following reports that the UK economy grew by 0.5% in the last quarter of 2015.  The local currency which opened the week at GH¢5.39 depreciated by 1.99% as at Friday and closed at GH¢5.49 against the British currency.

The local currency was also in the red against the Swiss Franc, sliding by 0.20% to close trading at GH¢3.78.

Against the Rand, the Cedi declined by 3.38% as the rand extended its post-rate hike rally. The local currency thus exchanged hands at GH¢0.24 per Rand.

 

Gainers
Equity Week Ending/Price(GH¢) Gain/ Percent
29-Jan 22-Jan Loss (¢) Change
SIC Insurance 0.19 0.15 0.04 26.67
Ecobank Trans. Inc. 0.26 0.25 0.01 4.00
Benso Oil Palm 3.05 3.00 0.05 1.67
Societe Generale    0.83 0.82 0.01 1.22
Ghana Oil 1.45 1.44 0.01 0.69

 

Decliners
Equity Week Ending/Price(GH¢) Gain/ Percent
29-Jan 22-Jan Loss (¢) Change
Tullow Oil 27.99 28.00 -0.01 -0.04
HFC Bank 1.05 1.10 -0.05 -4.55
CAL Bank 1.00 1.05 -0.05 -4.76

 

Source: UMB/IFEJ NEWS

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