Financial and agro-processing stocks to lead market gainers this week



On the Ghana Stock Exchange (GSE,) trading activity in terms of volumes on the stock market decreased by 8.09% in the week under review as volumes of shares traded scaled down by 3,292,577.

Further, the total values of shares traded increased to GHS 372,200.34 representing 8.09% appreciation week on week. There were 5 gainers and 2 losers at week-close.

The stock market is expected to attract most retail investors as the declaration of 2016FY financial results of listed companies influence investors choice of equities on the market. For this week, investors can focus on financial stocks especially Ecobank [EGH], Standard Chartered Bank [SCB], Ghana Commercial Bank [GCB] and Societe General Ghana [SOGEGH] in order to enjoy some capital gains on the bourse.

Manufacturing stocks such as Unilever Ghana Ltd [UNIL] and Fan Milk Ltd [FML] as well as Agro-processing stocks [i.e. BOPP] could also record some marginal capital gains on the back of increased buy pressure on the afore-mentioned equities.

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.

The Cedi lost marginally to all the major trading currencies at week close. The local currency exchanged at a mid-rate of GHS 4.6030 to the USD, GHS 5.5952 to the GBP and GHS 4.8922 to the EURO as at week close. GN Market Analysts posit that, the Cedi is poised to exhibit some stability on the forex marketin 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 9.46% gaining at an average daily rate of 8.63 percent for the week under review.


By GN Research