6 equities rally on the Accra Bourse

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Movers and shakers ?
Movers and shakers ?

Six equities rallied during the week as impressive earnings results of some companies energised the bourse which seemed to have run out of steam in recent times.

 

The benchmark Composite Index (CI) as a result brushed aside six laggards climbing 9.50 points to close the week at 2,226.37. This gain saw the CI post a year-to-date return of 3.78%.

 

The Financial Stocks Index (FSI) was also bullish as it jumped 24.07 points to close the week at 2,162.51. The return on the financial index stands at 21.04%.

Movers and shakers  ?
Movers and shakers
?

Stanchart extended its rally and led advancers climbing 12GHp to close at GH?18.52. GCB Bank followed with a 9GHp gain to GH?5.20. Benso Oil Palm on the back of buoyant earnings bagged 6GHp to close the week at GH?3.84.

 

Ecobank Transnational Incorporated also closed the week with 2GHp gain to 33GHp while Produce Buying Company and PZ Cussons gained a pesewa each to 14GHp 40GHp respectively.

 

On the other hand, Unilever Ghana trimmed 50GHp to GH?14.0; Societe Generale was down 3GHp to 83GHp while SIC Insurance and Enterprise Group slipped 2GHp each to 43GHp and GH?1.63 respectively. Cocoa Processing

Company and The Trust Bank Gambia also shed a pesewa each to end the week at1GHp and 30GHp respectively.

 

Trading Activity

Volume and turnover exceeded figures registered during the previous week by 13.5% and 416.6% respectively.? In all twenty seven equities had their shares changing hands with a total volume of 959,572 shares valued at GH?3.74 million being recorded.

 

Outlook

In the week ahead, the market is expected to build on gains as a number of investors seem eager to take positions before the end of the year. Robust 9-month earnings will boost market activity and help the indices maintain their recovery.

 

Stocks expected to head northward on the back of investor demand include Benso Oil Palm, Stanchart, and Ecobank Transnational Incorporated.? SIC Insurance may claw back this week?s two pesewas loss.

 

On the other hand PZ Cussons may trim gains on the back of Selling pressure. In the same regard, Unilever may ne marked down.

 

Short – term treasury rates rose marginally at the auction held last Friday October 17, 2014 as traders anticipated the government?s need for more funds in the short to medium term. The 1-Year and 2-Year notes however remained unchanged.

 

The yield on the 91-Day and 182-Day bills gained 3 basis points each to 25.71% and 26.42% respectively. The 1-Year and 2-Year Notes were steady at 22.50% and 23.00% respectively.

A total of GH?963.67 million was raised by the Bank Of Ghana (BoG) in bills and notes.

 

The Cedi was resilient this week clawing back gains lost to the Euro and Swiss Franc the previous week. The local currency also remained buoyant against the Dollar and Pound but eased against the Rand.

 

The release of US inflation which saw a 0.1% climb to 1.7% in September resulted in the Dollar trending lower against the Cedi this week. The Ghanaian currency closed the week stronger against the greenback adding 0.06% to GH?3.20.

 

The local currency climbed against the Euro on speculation that the European Central Bank could expand its bond-buying programme.? The Cedi added 1.18% against the 18-nation currency to close the week at GH?4.04.

 

Although the Pound posted some positive numbers during week, an unexpectedly drop in UK retail sales to 3.1% from 4.4%, an indication that their domestic economy was slowing, bolstered the Cedi by 0.08% against the Pound Sterling with weekending rates by bankers averaging GH?5.12.

 

Against the Swiss Franc the local currency gained 1.17% with traders on the interbank market quoting GH?3.35 for the Swiss Franc.

 

The Cedi however depreciated against the Rand after a well-received interim budget from the South African finance minister earlier in the week. The Ghanaian currency shed 0.82% against the Rand to close the week under review at GH?0.29

 

Source Merban Stockbrokers Ltd

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