GSE stock market rally continue with gains

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Decliners And Gainers
Decliners And Gainers

The stock market?s rally continued with the market indices extending gains on the back of nine advancers.

 

The benchmark Composite Index (CI) as a result brushed aside six laggards climbing 8.77 points to close the week at 2,439.20 representing a year-to-date return of 13.71%.

 

The Financial Stocks Index (FSI) was also bullish as it jumped 22.18 points to close the week at 2,202.17. The return on the financial index stands at 23.26%.

 

Movers and shakers

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Enterprise Group and Total Petroleum led advancers climbing 25GHp and 20GHp to close at GH?2.80 and GH?5.25. Societe Generale and Fan Milk followed adding 17GHp and 11GHp to GH?1.18 and GH?7.24 respectively.

 

HFC also climbed by 8GHp to GH?1.09. Four other advancers closed the week with a pesewa increase each. Benso Oil and UT Bank rose to GH?3.29 and 49Ghp. Ecobank Transnational Incorporated and SIC insurance ended the week at 22GHp and 40GHp respectively.

 

On the other hand, Ghana Commercial Bank and Guinness Ghana were under pressure shedding 20GHp and 17GHp to GH?4.45 and GH?6.00 respectively. CAL Bank and Ghana Oil also lost grounds dropping 3GHp and 2GHp to GH?1.01 and 85GHp. PZ Cussons and Aluworks also closed the week easing a pesewa each to 66GHp and 5GHp respectively.

 

Trading Activity

 

In all twenty-three equities had their shares changing hands with a total volume of 2.68 million shares valued at GH?5.42 million being recorded.

 

      Decliners and gainers

Decliners and gainers

Outlook

 

In the week ahead, one expects the bourse to continue its northward drive as investors await more year-end financial results and dividend announcements.

On the back of trends observed during the week, stocks expected to drive market activity on the back of increased demand include Societe General, Total Petroleum, Fan Milk, HFC Bank and CAL Bank on its dividend announcement.

 

Treasury News

 

Treasury rates edged higher at the auction held last Friday February 14, 2014 as traders eager to win their bids.

 

The yield on the 91-Day bill was up 67 basis points to 20.79%. The 182-day bill also increased by 42 basis points to 20.27% while the 2-Year Note gained 1.20 basis points to 17.50%.? The 1-Year Note however remained steady for an eighth-straight auction at 17.0%.

 

The Central Bank also issued a 3-Year bond at a coupon rate of 23.0%. The issue was marginally over-subscribed as the Bank of Ghana accepted just its target of GH?402M though GH?465M worth of bids were received from investors.

 

Total bids submitted by dealers for bills and notes amounted to GH?1,004.94 million but the Central Bank accepted GH?918.62 million which represents an 87.86% increase above the targeted amount of GH?486M.

 

Currency Markets

 

The Cedi was under pressure during the week under review failing to bounce back from the previous week?s slide.

 

The U.S. Federal Reserve?s decision to continue its cut-back program and a reduction in unemployment claims gave a massive boost to the greenback. This saw the Cedi drop 0.89% against the dollar to close the week at GH?2.46.

 

The Cedi also lost traction against the Euro which was lifted by improving consumer sentiment resulting in a strong economic data. The local currency was down 2.08% against the 17-nation currency GH?3.37.

 

The Cedi also trimmed 1.94% and 2.20% against the Pound and the Swiss Franc with traders on the interbank market quoting GH?4.09 and GH?2.76 today.

 

Against the South African Rand, the Cedi shed 1.98%. Week ending rates averaged GH?0.22.

 

Corporate News

 

CAL Bank has announced a dividend of GH?0.053 per share in respect of its financial year ended December 31, 2013.

 

All shareholders registered in the books of CAL Bank at the close of business on Friday, ?March 21, 2014 will qualify for the dividend.

 

Consequently, an investor purchasing CAL Bank shares before Wednesday, ?March 19, 2014 will be entitled to the dividend. However, an investor buying CAL shares on or after this date will not be entitled to the dividend.

 

The dividend of GH?0.053 per preference share will be paid on Wednesday, ?April 30, 2014.

 

The bank?s Annual General Meeting will be held on Wednesday, Thursday, ?March 27, 2014 at the Conference Auditorium of the National Theatre, Accra at 10.00 am.

 

Source Merban Stockbrokers Ltd

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