The Cedi has been in consolidation mode against all the other major trading currencies last week, following the Bank of Ghana’s increased forex supply on the currency market.
The decision to raise the amount of for eight exchange pumped into the market was to help stabilise the local currency, which has been on a depreciation gear over the past few weeks.
The move caused the currency to appreciate by 9.78 per cent against the Dollar, rising from from GH¢4.05 at the beginning of last week to GH¢3.70 on September 4.
The cedi also rallied against the Euro and the Pound, appreciating by 10.95 per cent and 11 per cent respectively.
Interbank dealers quoted mid-rates of GH¢4.11 to the Euro and GH¢5.64 to the Pound.
The Swiss Franc and the Rand also drifted against the Cedi. The local currency appreciated by 11.01 per cent against the Swiss Franc to GH¢3.79 and 13.04 per cent against the South African Rand to GH¢0.27.
The stock market ended the first week of the month in the red as declines in 11 equities saw the indices drifting downwards. The week under review saw the benchmark composite losing 55.01 points to 2,100.42 points. This brought its year-to-date change to negative 7.10 per cent.The Financial Stocks Index also closed lower, dropping 61.70 points to 2,077.90 pots. Its year-to-date return, thus declined to negative 7.39 per cent.
Fan Milk gained 4GHp to close at GH¢5.99. Starwin Products and Unilever also went up by a pesewa each to 4GHp and GH¢7.41 respectively. On the other hand, 11 equities retreated. Stanchart dipped 27GHp to GH¢16.71; Guinness Ghana and Unilever lost 14GHp and 12GHp to GH¢2.20 and GH¢1.78 respectively. CAL Bank and Ecobank Ghana also decreased by 10GHp and 5GHp to 85GHp and GH¢8.00 respectively.
The other decliners were Ecobank Transnational Incorporated and Societe Generale; each went down by 3GHp to close the week at 31GHp and 87GHp respectively. SIC and GCB Bank also dropped 2GHp each to 13GHp and GH¢4.0 respectively. Enterprise Group and PBC Limited completed the list of decliners, giving up a pesewa each to close trading at GH¢2.19 and 10GHp respectively.
A total of 3.09 million shares exchanged hands in 23 equities last week. This compared favourably to the 1.24 million shares recorded the week before. Turnover for the week amounted to GH¢1.4million as against the GH¢1.2million recorded the previous two weeks.
In this week, bids for Fan Milk and Unilever by investors is likely to see their prices appreciating in the week ahead. On the flip side, the search for bargain deals in Ecobank Ghana, Stanchart, Ghana Oil, SIC Insurance and CAL Bank may result in the value of these bluechip stocks shedding some grounds, thereby impeding the recovery of the indices. The ongoing adb share offer may also divert some attention from the secondary market.
At the end of the auction held last Friday August 28, 2015,the Bank of Ghana raised GH¢1.24 billion in bills and notes. This was 9 per cent higher than the GH¢1.14 billion it had projected to raise.
The short dated instruments closed higher while the secondary ones remained unchanged. The 91- Day bill went up from 25.21 per cent to 25.93 per cent last week.
The 182- Day bill also gained 4 basis points to close at 25.93 per cent.
The 1 year and 2 year notes were, however, unchanged at previous levels of 22.5 per cent and 23 per cent respectively.
At the auction to be held September 4, the Central Bank hoped to raise GH¢1.11 billion.
