The stock market remained relatively stable from last week’s low performance. The year-to-date loss of the GSE Composite Index was 9.85%; while investors await the reading the mid-year budget by the finance minister.

Financial Stock Index was on the down side also. It recorded a year-to-date loss of 6.93%, down 166 basis points from the previous week’s loss of 5.36%.

The decline in the Ghanaian market was further depicted by a 0.56% marginal fall in the market capitalization from      GH¢58.27 B the previous week to touch GH¢57.96 B.

By close of the trading week, shares of 21 companies were on the tables of the exchange resulting in two gainers and ten laggards.  

 Volume traded was 51% more than the previous weeks’. Valued at GH¢5 million, total volume for the week was 1,521,090 shares. The major drivers for the increase in volume traded were FML, SOGEGH and GCB, as the three formed 92% of volume.

Fan Milk Ltd. emerged as the most liquid stock for the week as investors existed on their positions. The stock traded 57% of total volume by close of week. Their Financial results for first quarter 2019 showed that revenue increased by 8.8%, however more than a percentage increase in costs saw net profits decreasing by 28%. The company attributed the drop in profits to exchange rate losses. The share price of FML dropped 36% over the past few weeks and closed at GH¢4.51 this week. Analysts believe that the significant drop in the financial performance of FML was as a result of the tension that transpired in the company last year and has translated to the drop in price on the bourse. It is     expected that the company may recover from its diminishing performance in the medium term due to the relative stability of the Cedi and the introduction of new products into the market.

SOGEGH and GCB were the next most liquid stock by trading 20% and 14% respectively. The Alternative market saw some activity with 800 shares of IIL exchanging hands.

In the week ahead, analyst expect that the market to remain bearish. EGL and CAL may see a further decline due to excess supply over demand; however GCB may rise since investors are seen taking long positions on the stock.

In the news, GCB announced the appointment of Mr. Kofi Koramoa Awuku as the Managing Director of its subsidiary, GCB Securities Limited, effective 3rd June, 2019.

Investors may contact SIC Brokerage Ltd. to buy/sell shares and bonds/T-Bill at competitive rates.