Anticipated further rise in YTD market return

On the Ghana Stock Exchange

Trading activity in terms of volumes on the stock market increased by 310.87% in the week under review as volumes of shares traded scaled up by 3,750,533. Further, the total values of shares traded increased to GHS 8,523,381 representing 1331.25% appreciation week on week.

 

There were 3 gainers and 3 losers at week-close.

The market is expected to ride on the wave of positive market sentiments. The local bourse will continue to return impressive yields to investors in the short to medium term. YTD return of the Composite Index, i.e. a measure of the broader stock market return is currently pegged at 13.61% well above the 91 day t-bill rate (12.39%).

 

GN Analysts anticipate further rise in the YTD market returns by week close on the back of better market outlook for 2017 and impressive trade numbers for this week. Investors can push funds into GCB, GOIL, SCB, BOPP and FML shares this week to realize short term above-average gains on the bourse.

 

An analytical outlook into 2017 pictures YTD key market indices closing the year relatively better than 2016. Commodity-based stocks are expected to follow an upward trajectory following an anticipated relative stability of major commodity prices on the world market. Most financial stocks may fail again to drive over-all returns on the market as the banking industry continues to record high levels of NPLs, financial stocks however, may record lesser price volatilities as compared to 2016.

 

On the Ghana Alternative Market (GAX)

Trading activities on the Ghana Alternative Market was stifled as no shares changed hands during the week under review.

HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.

 

On the Currency market

The Cedi gained marginally to the US Dollar but lost to the British Pound and Euro at week close. The local currency exchanged at a mid-rate of GHS 4.2928 to the USD, GHS 5.5306 to the GBP and GHS 4.8416 to the EURO as at week close. GN Market Analysts posit that, the Cedi is poised to exhibit some stability on the forex market in the short-term.

 

The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date depreciation of 4.70% losing at an average daily rate of 4.79 per cent for the week under review.

 

By GN Research

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