Ghanaian equities finished modestly lower in the holiday-shortened week. The GSE Composite Index closed at 2,311.48 points, down 4.85 points from the previous week.
Price drops in shares of EGH, GCB and RBGH caused the Financial Stock Index to lag causing the year-to-date loss of the index to dip 131 basis points to close at minus 5.79%.
Market capitalization was 0.09% lower than GH¢57.53 billion the previous week.
The trading week ended with three gainers and eight laggards out of shares of eighteen companies that exchanged hands on the floor of the exchange.
Liquidity was on the high side mainly due to block trades of 22 million and 12 million shares of MTNGH on two separate days within the week. The value of these trades stood at GH¢25.95 million, with a total of 34.92 million shares trading, compared to 210 thousand shares the previous week.
MTNGH emerged as the most liquid stock for the week as it traded 98% of total volume. The stock gained 1.43% to close at GH¢0.71. This came a week after declaration of an interim dividend of GH¢0.02 per share for the half year period and posting some positive financial results. SOGEGH and ETI followed as most liquid stocks for the week by contributing 1% to total volume by close of week.
FML continues to earn attraction of the bourse for this period. The stock led the pack of gainers this week with a gain of 14.43% to close at GH¢5.55. Investor confidence in the stock seems to be escalating after information about the takeover by Danone reached the public. FML has risen some 22% after the announcement.
The Week Ahead!!!
Expectations are that the stock market will continue to remain bearish the coming week since confidence in the financial sector continues to remain low. However FML may likely continue its upward movement after regaining investor confidence.
In the news, SCB announced the resignation of Mr. David Habaimo Adepoju from the Company’s Board, effective 31st July, 2019.
On the Fixed Income Front, total volume surged 76% from the previous week’s 528 million. In a related development, AFB announced payment of coupon for its Tranche 11 of the 7-year Floating Rate Senior Unsecured Note. Qualifying date is August 26, 2019 and the payment date is September 3, 2019.