Skip to main content

Discount deals put pressure on equities




Trading activity on the bourse in the week ending January 9 was characterised by investors seeking to take positions at bargain prices.

Although activity levels were impressive with a higher number of transactions taking place during the week, the search for discount deals put the shares of eight equities under pressure.

The market indices, as a result, failed to cling to gains registered during the previous week.

At the close of the week, the benchmark Composite Index (CI) was down by 26.23 points to 2,261.09 points. The return on the CI was flat with the index slipping to the year opening’s level.

The Financial Stocks Index (FSI) also backtracked, shedding 34.37 points to 2,245.65 points. That brought its year-to-date return to 0.09 per cent.

Societe Generale was the sole gainer, adding 6Gp to GH¢1.06. The prices of eight equities, however, slipped.

Standard Chartered shaved 21Gp to GH¢20.14; GCB Bank dropped 12Gp to GH¢5.70, while PZ Cussons trimmed 6Gp to end trading at 24Gp.

Ecobank Ghana and Enterprise Group shaved 3Gp each to settle at GH¢7.57 and GH¢1.72 respectively, while ETI and UT Bank gave up 2Gp each to end trading at 26Gp and 23Gp respectively.

Volume and turnover were impressive with a total of 663,861 shares changing hands in 23 equities.

This compared to the 796,111 shares that were exchanged the previous two weeks.

Turnover for the week came up to GH¢2.57 million, compared to the previous two weeks’ GH¢995,806.

In this week, we expect Societe Generale to extend its climb as buyers are likely to up to match offers.

CAL Bank is also expected to be under investors’ radar as bids outstripped offers at the closing bell on January 9.

Bidding trends by buyers is likely to see GCB and UT Bank edging lower in the week.

On the money market, the 91-day bill firmed-up at the auction held January 2. The 182-day bill and the long term treasury notes, however, remained unchanged.

With investors’ anticipating higher government needs in the near term, the 91-day bill extended its northward drive by three basis points to close at 25.84 per cent.

The 182-Day bill was, however, unchanged at the previous rate of 26.41 per cent.

The One-year and two-year notes were also stable at 22.5 per cent and 23 per cent respectively.

A total of GH¢729 million was raised by the Bank of Ghana.

The Cedi lost grounds to the dollar but strengthened against the Pound, Euro, Swiss Franc and Rand on the forex market this week.

It trimmed 0.33 per cent against the Dollar, which gained support from impressive job numbers and lower jobless claims for December 2014. Traders on the interbank market quoted an average rate of GH¢3.21 for the greenback at the week’s close.

The local currency, however, strengthened against the Euro, which was weighed by indications that the European Central Bank is likely to adopt quantitative easing to prevent deflation in the region.

The Cedi, as a result, gained 1.79 per cent against the shared currency to change hands at GH¢3.81.

It also firmed up against the Pound Sterling and the Swiss Franc, climbing by 2.68 per cent and 1.65 per cent with rates on the interbank board averaging GH¢4.86 and GH¢3.17 for the Pound Sterling and the Swiss Franc on Friday respectively.

Against the South African Rand, the local currency edged up by 0.62 per cent to change hands at GH¢0.27.

Credit: UMB Stockbrokers/GB

Comments

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong sarpong007@gmaail.com
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong
sarpong007@gmail.com

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…