Market gains to be sustained to year end

On the Ghana Stock Exchange

Stock market returns continue to soar higher after trade sessions each day with the current broader market index returning 37.36% YTD. Low volatility levels on the market have contributed to stable returns on stocks like CAL and SOGEGH in recent weeks. Gains on the stock market continue to rise with equities such as BOPP and SCB returning YTD capital gains of 154.81% and 118% respectively.

 

Year-on-Year analyses of market performance show a turnaround of the market performance compared to the last 2 years. Improvement in the volumes and values of shares for the first half of the year has been sustained by the attractiveness of the local bourse to both foreign and domestic investors. Large funds inflows into the stock market have caused trade numbers to soar.

 

Gains on the market will continue to rise for the remainder of the year 2017 on the back of strong company fundamentals, low volatility levels and improved investors sentiments in the market’s performance. Retail investors’ activities will mostly drive market returns in the last quarter of 2017. Gains on SCB, EGL and CAL will ensure that financial stocks lead the gainers list for 2017.

 

Trading activity on the bourse ended with 9 gainers (CAL, EGL, FML, SIC, GGBL, GOIL, HFC, SPL and SCB) and 1 loser (GCB) yesterday. CAL topped the trading chart in terms of volume as 120,000 shares worth GHS 115,000.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 37.36% and 39.22% respectively.

 

On the Ghana Alternative Market (GAX)

Trading activity on the Alternative Market was hushed as no shares changed hands on the GAX.

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 British Pound but LOST to the USD and the EURO on the inter-bank market yesterday. The local currency exchanged at a mid-rate of GHS 4.3894 to the USD, GHS 5.6166 to the GBP and GHS 5.1826 to the EURO.

 

The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 8.73%.

 

GN Research 

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