Low price equities to dominate on GSE

The Ghana Stock Exchange floor
The Ghana Stock Exchange floor

 

Trading activity in terms of volumes on the stock market decreased by 37.07% in the week under review as volumes of shares traded scaled down by 472,837. Further, the total values of shares traded decreased to GHS 1,396,459.98 representing 82.36% depreciation week on week on the Stock Market (GSE). There were 5 gainers and 8 losers at week-close.

The market is expected to follow similar trade pattern from last week. Investors should expect trading volumes and values to rise by mid-week and significantly fall by week close. GN Analysts anticipate that equities that exhibit high price volatility will lose by close of the week as the entire market is expected to remain jumpy. Most low-price equities will lead the list of gainers by close of trading this week.

An analytical outlook into 2016 pictures YTD key market indices closing the year in negatives but relatively better than 2015. Commodity-based stocks are expected to follow in a downward trajectory and most financial stocks may fail again to drive returns on the market but may record lesser price volatilities as compared to 2015.

Trading activity on the Ghana Alternative Market [GAX] was lower than previous levels in terms of volumes and values for the week under review. Intravenous Infusions Limited [IIL] was the sole equity listed under the GAX that traded last week. A total of 600 shares of IIL valued at GHS 54.00 traded.

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

The Cedi GAINED marginally to the Euro but lost to the Pound and stabilized against the Dollar at week close. The local currency exchanged at a mid-rate of GHS 3.9464 to the USD, GHS 5.2485 to the GBP and GHS 4.4044 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 2.84% gaining at an average daily rate of 2.65percent for the week under review.

 

Source: Ghana/todaygh.com/GN Research

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