Gains in four equities lifted the bourse on Monday with the benchmark Composite index defying three laggards to push higher. The Financial Index however declined.
On price movements, Tullow Ghana climbed 50GHp to close the day at GH?31.50. SIC Insurance also continued its upward surge adding 3GHp to 47GHp. Other advancers were Total Petroleum and Fan Milk which ended the session up each to GH?5.30 and GH?7.33? respectively.
On the other hand, three banking stocks lost grounds. Ecobank Ghana and Societe Generale shaved 2GHp each to close at GH?7.90 and GH?1.15 respectively. CAL Bank also slipped a pesewa to 95GHp.
In all, a total of 265,263 shares valued at GH?648,577 were exchanged in seventeen equities. Volume and value of shares traded today were boosted by trades in Ghana Commercial Bank, CAL Bank and Ecobank Transnational Incorporated which together accounted for 82.4% of total volume and 91.0% of value.
At the closing bell, the benchmark Composite Index added 0.54 points to close at 2,421.45. This gain in the benchmark index takes the year-to-date return on the bourse to 12.88%.
The Financial Index (FI) slipped as three financial banking stocks declined.? The FI lost in a loss of 3.09 points to 2,165.17. The return on the financial index stands at 21.19%.
Outlook
In the days ahead, analysts expect the bourse to sustain its northward drive on the back of demand for stocks like Fan Milk, SIC Insurance and Total Petroleum. Ghana Commercial Bank, CAL Bank and Enterprise Group are also expected to drive market activity in the next session.
The 91 and 182-day bills extended their northward climb at the auction held last Friday February 28, 2014.
The 91 and 182-day bills added 15 and 5 basis points to 21.23% and 20.99% respectively. On the other hand, the 1-Year and 2-Year Notes were stable at 17.0% and 17.50% as investors? continue to show more interest in short dated securities.
In spite of expectations of increases in rates, bids were unusually low during the auction. Although the BoG had targeted GH?528M in short term bills and notes, bids of GH?388M were submitted by dealers of which GH?387 was accepted by the Central Bank.
This was 26.51% lower than the amount targeted. At the next auction to be held on March 7, 2014, the BoG hopes to raise GH?442 million in bills and notes.
On the currency market the Cedi was again under pressure opening the week lower against the major currencies.
The local currency was down 0.09% and 0.75% against the Dollar and the Euro with rates on the interbank market averaging GH?2.53 and GH?3.49 today.
Against the Pound and the Swiss Franc the local currency also shaved 0.43% and 0.86% with traders on the interbank market quoting GH?4.23 and GH?2.87 for the Pound and the Swiss Franc respectively.
The local currency however appreciated against the South African Rand; it gained 0.02% to open the week at 23GHp.
Source Merban Stockbrokers Ltd
