Holiday effect to shore up trading on the GSE

The Ghana Stock Exchange floor
The Ghana Stock Exchange floor

Trading activity in terms of volumes on the Ghana Stock Exchange (GSE) increased by 231.67% in the week under review as volumes of shares traded scaled up by 2,528,319.

Further, the total values of shares traded increased to GHS1,183,908.69 representing 25.19% depreciation week on week.

There were 2 gainers and 6 losers at week-close.

Total market capitalization of the stock market dipped by 0.8% to GHS 53,135.15 million at week close.

GN Analysts anticipate a comparatively higher trading volume of stocks on the bourse on the back of the pending mid-week holiday. Block trades will also dominate trading activity this week mainly due to the holiday effect. Price-volatile and liquid stocks such as CAL, GCB & ETI could potentially move their share price. High trading volumes on UTB shares which could possibly lead to a drop in price are expected due to investors’ selling their stakes in UTB.

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.

Intravenous Infusions Limited [IIL] was the only actively traded equity on the Ghana Alternative Market (GAX) for the week under review. 21,000 shares of IIL valued at GHS 1,890.00 traded.

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

The Cedi GAINED marginally to the Pound and the Euro but lost to the Dollar at week close. The local currency exchanged at a mid-rate of GHS 3.9564 to the USD, GHS 5.1777 to the GBP and GHS 4.4135 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 2.80% gaining at an average daily rate of 3.08 percent for the week under review.


Source: Ghana/ Research

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