Databank market review for November 10, 2017

At the end of this week’s trading session, the Ghana Stock Exchange’s Composite Index (GSE-CI) increased by 40.70 points w/w to settle at 2,408 points.

The Databank Stock Index (DSI) likewise, surged 474.94 points w/w to 30,863 points.

The upward movement of the indices were driven by price gains in 7 counters.

The GSE-CI and the Databank Stock Index have recorded year to date returns of 42.56% and 38.20% respectively.

The total volume of shares traded declined by 18% w/w to 4.39 million shares despite block trades recorded by HFC Bank and SIC Insurance Company. These shares which were exchanged across 25 counters culminated in market turnover of GHC8.17 million.

The market breadth of the Ghana Stock Exchange was positive w/w - 7 gainers to 5 laggards. Standard Chartered Bank soared GH¢1.89 to GH¢21.50 while Unilever Ghana advanced by GH¢1.65 to GH¢12.64. Ghana Oil Company gained 5Gp to GH¢2.60. GCB Bank and Guinness Ghana Breweries increased by 2Gp each to GH¢4.23 and GH¢1.92 respectively.

Societe Generale Ghana and CAL Bank edged up by 1Gp each to 75Gp and GH¢1.06 respectively.

Access Bank led the laggards chart, declining by 51Gp to GH¢3.40. Fan Milk Ltd and Tullow Oil Plc. lost 2Gp each to GH¢19.28 and GH¢17.28 respectively. Mechanical Lloyd Company and Ecobank Transnational Inc. trimmed 1Gp each to 8Gp and 17Gp respectively.

Outlook

Based on the outstanding bids and offers on the market, we expect a vibrant market activity next week. We project trades in Standard Chartered Bank to spearhead volume traded for next week.

Total Petroleum Ghana, Standard Chartered Bank and CAL Bank are tipped to inch up next week fuelled by increased demand for their shares on the market.

We however forecast the prices of Fan Milk Ltd and Ecobank Transnational Inc. to trim some pesewas weakened by the excess supply of their shares on the market.

The Ghana Stock Exchange’s Composite Index, the Financial Stocks Index and the Databank Stock Index are all projected to end next week on a higher level, supported by the projected price appreciation in Standard Chartered Bank.