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25.04.2006 General News

Market Maintains Positive Stance

The market maintained a positive market breadth last week, although its driving force diminished in magnitude.

Three market movers, all gainers, were recorded during the week under review - half the number that was sustained in the preceding week.

The Databank Stock Index (DSI), inched up by 0.32 points to close at 5,969.68 points. Enterprise Insurance Company (EIC), sustained a ¢19 rise in its share price, and closed at a level of ¢6,907.

The stock prices for Ghana Commercial Bank (GCB), and Aluworks (ALW), improved by ¢2 and ¢1 to close for the week under review at ¢6,218 and ¢6,221 respectively.

Total market capitalisation on the Ghana Stock Exchange last week stepped up by ¢860 million to ¢91.7 trillion last week.

A total volume of 303,767 ordinary shares valued at ¢1.67 billion ($184,497) was exchanged on the Ghanaian bourse last week. Additionally, 5,800 SCB preference shares valued at ¢30.2 million ($3,312) were traded during the week.

Money Market

Whereas higher yields were quoted on the shorter-dated money market instruments last week, lower yields were quoted for the longer-dated fixed income securities over the same period.

The 91-Day and 182-Day Bills improved by four basis points and one basis point to levels of 9.66 per cent and 11.02 per cent respectively, while the one-year note, two-year note and three-year Bond declined by five basis points, 10 basis points and 25 basis points to levels of 15.55 per cent, 16.0 per cent and 16.5 per cent respectively.

Currency Market

The cedi appreciated by ¢2 against the dollar on the interbank market last week and was quoted at ¢9,107.
Against the pound sterling and the euro, however, the cedi depreciated by ¢258, and ¢192 to levels of ¢16,238 and ¢11,232 respectively.

The performance of the local currency on the forex market, mirrored what transpired on the interbank market last week.

The cedi gained ¢15 against the dollar during the week to a level of ¢9,245, but lost ¢125 and ¢50 to the pound and euro respectively.

By the close of business last week, the cedi was quoted at ¢16,125 to the pound sterling and ¢11,125 to the euro.

The price for Databank's Epack Investment Fund grew by ¢25.56 last week, and closed at a level of ¢4,636.51. The year-to-date return on the fund currently stands at 6.84 per cent.

Bid and offer prices for Databank's Money Market Fund (Mfund), averaged an increase of ¢3.74, and closed for the week at ¢1,331.80 and ¢1,345.12 respectively. Mfund's annualised yield presently stands at 13.68 per cent.

In previous second quarters of the year, trading on the GSE has been relatively skewed towards equities within the financial, manufacturing, brewery, food & tobacco and consumer goods industries.

Over the past three years ending second quarter of 2005, selected equities in these industries have traded for approximately 79 per cent of the total trading days within the second quarter alone, by far exceeding that of the remaining listed stocks which averaged 23 per cent of the total trading days over the same period.

Almost a month into the second quarter, it is anticipated that the listed companies' fundamentals will improve with the Ghanaian economy.

Consequently, investors are expected not just to be drawn into stocks with strong fundamentals and good prospects for growth, but also to be attracted to stocks that have a good trading history.

Stocks expected to be fairly liquid in the coming week include CAL Bank (CAL), Enterprise Insurance Company (EIC), Ghana Commercial Bank (GCB) and Guinness Ghana Breweries Ltd. (GGBL).