Bourse index firms on Home Finance gains

ACCRA, June 30 (Reuters) - Gains in Home Finance Corp. shares pushed the Ghana Stock Exchange (GSE) all-share index up 1.08 point to 817.79 on Friday, the official market report showed. The index, which had not moved in the two previous sessions, has gained 11.09 percent on the year to date.

"Corporate results have been generally well received; they've been fairly good in spite of the fact that the economy is not doing all that well," Fred Nuer of Securities Discount Company, told Reuters.

But despite the gains, foreign investors holding Ghanaian shares have seen the value of their investment plummet as the cedi currency continues its slide.

"Most of the foreign investors have actually lost half their investments due to the depreciation of the cedi," Nuer added. The cedi has lost around 59 percent of its value against the dollar so far this year.

Average trading volume for the first six months of the year was up at 18.8 million cedis, from 18.0 million cedis for the same period of 1999.

But Nuer said the cedi's fall was sapping foreign interest in the bourse.

Some 2.1 million shares were offered for sale on Friday, with just 16,000 traded for a total turnover of 15.93 million cedis ($2,950), well down on the 26.77 million cedis ($5,160) traded in the previous session on Wednesday.

Home Finance, the sole gainer, moved up 40 cedis to its best level this year at 950. But for the second consecutive session, the most active stock was Ghana Commercial Bank with 8.31 million cedis, or around 52 percent of the total volume.

The only loser was Unilever, down four cedis 1,845, its lowest level this year.