The Dollar was stronger against the Cedi in the week ending August 28 as data released on August 27 showed that the U.S. economy grew faster than initially thought in the second quarter.
The greenback benefited from upbeat U.S. data to record a 2.15 per cent gain against the cedi in the week under review. It traded at GH¢4.07 to the dollar.
The Euro also rallied sharply against the local currency as the cedi declined by 2.33 per cent to close at GH¢4.56 to the shared currency.
Against the pound and the Swiss franc, the Cedi, which opened the week at GH¢6.24 and GH¢4.13 respectively, dipped by 0.28 per cent and 1.89 per cent to trade at GH¢6.26 to the Pound and GH¢4.21to the Swiss Franc on Friday.
The South African rand was also up by 0.05 per cebt to the cedi. Forex dealers quoted an average of GH¢0.31 per Rand.
Stock market
The stock market could not sustain its upbeat note recorded last two weeks as the search for discount deals in a number of equities resulted in the prices of 11 equities retreating during the week under review.
The benchmark composite lost 8.79 points to 2,155.43 points. Its year-to-date return declined to negative 4.67 per cent.
The Financial Stocks Index was also under pressure, retreating by 12.34 points to 2,139.60 points, corresponding to a year-to-date change of negative 4.64 per cent.
Trading
On price movements, insurance service provider, Enterprise Group, led gainers with a 17GHp gain to GH¢2.20.
Ghana Oil extended its upward trend, bagging 8GHp to GH¢1.9.
Ecobank Transnational Incorporated also added 2GHp to 34GHp. HFC Bank and Fan Milk closed the week up a pesewa each to GH¢1.31 and GH¢5.95 respectively.
On the other hand, Guinness Ghana shaved 40GHp to GH¢2.34.
The search for bargain deals in Standard Chartered also led to the banking stock losing 15GHp to GH¢16.98.
Ecobank Ghana, GCB Bank and Benso Oil Palm shed 7GHp, 5GHp and 4GHp to GH¢8.05, GH¢4.03 and GH¢4.16 respectively.
CAL Bank dropped 3GHp while UT Bank, Aluworks and SIC Insurance shaved 2GHp respectively. The three equities closed the last session at 95GHp, 10GHp and 15GHp respectively
The other decliners were Mechanical Lloyd and Societe Generale, which closed down a pesewa each to 16GHp and 90GHp respectively.
At the end of the week, a total of 1.2 million shares were exchanged in 20 equities. This was valued at GH¢13 million.
Outlook
In the week ahead, we foresee Ghana Oil’s rally cooling as demand dries up. Stanchart, Ecobank Ghana and SIC Insurance may decline but we expect the market to remain steady on the back of expected demand in Fan Milk and Unilever.
Source: Daily Graphic
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