GSE: Value of local bourse to rise this week


On the Ghana Stock Exchange (GSE,) trading activity in terms of volumes on the stock market increased by 287.18% in the week under review as volumes of shares traded scaled up by 2,646,371.

Further, the total values of shares traded increased to GHS 4,603,367 representing 1.06% appreciation week on week. There were 7 gainers and 3 losers at week-close.

The stock market will continue to trade high volumes and values of shares this week.

The value of the local bourse is expected to pick up this week after the total market capitalization of fell to GHS 49.14728 billion at week close.

Anticipated high trading volumes on ETI, SCB, GCB and possibly TLW shares this week will push the value of the Accra bourse up. GN Analysts’ also anticipate capital gains on GCB, EGH, SCB, UNIL, CAL, BOPP and ETI shares this week.

An analytical outlook into 2017 pictures YTD key market indices closing the year relatively better than 2016. Commodity-based stocks are expected to follow in an upward trajectory following an anticipated relative stability of major commodity prices on the world market. Most financial stocks may fail again to drive 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 activity on the GAX ended last week with all equities trading flat on the Alternative Market.

HORDS remains the only equity listed on the GAX to return 25% in capital gains to investors for the year 2016.

On the Currency market, the Cedi lost marginally to the Dollar and Euro but gained to the British Pound at week close. The local currency exchanged at a mid-rate of GHS 4.5092 to the USD, GHS 5.5204 to the GBP and GHS 4.7610 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 7.10% gaining at an average daily rate of 6.70 percent for the week under review.


By GN Research