2010 

SIC-FSL
WEEKLY MARKET WATCH 
2ND DECEMBER, 2010 
 

The content of this report reflects the views of the analysts. It is presented for information purposes only and 
does not serve as investment advice pertaining to the purchase or sale of securities. Information used in this 
analysis was acquired from sources believed to be accurate but SIC‐FSL cannot attest to its accuracy. 

 
ANALYST: DERRICK A.  MENSAH 
 MARKET SNAPSHOT

INDICATORS WEEK OPEN WEEK END CHANGE

STOCK MARKET

GSE- ALL SHARE INDEX LEVEL (Points) 6,948.06 6,990.50 42.44

GSE- ALL SHARE INDEX YTD (%) 24.69 25.45 0.76

GSE- ALL SHARE INDEX MARKET CAP (GH¢ mil) 19,957.02 19,989.81 32.79

SIC-FSL TOP 15 INDEX LEVEL (Points) 1,558.41 1,570.14 11.73

SIC-FSL TOP 15 INDEX YTD (%) 29.45 30.42 0.97

VOLUME TRADED 4,295,414.00 6,159,814.00 1,864,400.00

VALUE TRADED (GH¢) 2,772,754.13 1,987,911.23 -784,842.90

CURRENCY MARKET

USDGHS EXCHANGE RATE 1.4345 1.4384 0.0039

GBPGHS EXCHANGE RATE 2.2565 2.2482 -0.0083

EURGHS EXCHANGE RATE 1.9068 1.8919 -0.0149

ECONOMIC

INFLATION (Oct ’10) 9.38 9.38 0.00

GoG POLICY RATE (%) 13.50 13.50 0.00

GoG 91 DAY T-BILL RATE (%) 12.32 12.30 -0.02

GoG 182 DAY T-BILL RATE (%) 12.71 12.70 -0.01

GoG 1 YEAR NOTE RATE (%) 12.72 12.70 -0.02

 GSE RECORDS MARGINAL APPRECIATION

The Ghanaian stock market opened the week’s trading with an upside gap but gave off from the
week's high to end the period with modest gains. Optimism was the major driver that sent the
market to a high of 7,101.23 points last Tuesday. However, profit taking by investors saw the GSE
All-Share index recline to close the week at a level of 6,990.50 points.

Liquidity

Though the week recorded fewer trading sessions due to the Farmers’ day Holiday last Friday, the
total volume of shares that exchanged hands within the period was 43.4% higher than the previous
week’s figure of 4.3 million shares. This was due to the block trade in African Champion Industries
(ACI) and Cal Bank (CAL) shares over the period. A total of 3.7 million ACI shares traded whiles
1.1 million CAL shares also exchanged hands. Both accounted for 78% of the total volume traded
on the Bourse in the week under review.
Fig 1: YTD performance of YTD Returns of GSE-ASI Vs SIC-FSL Top 15
Index Performance
%
STOCK TICKER Wk Open Wk End Change change The GSE-ASI and SIC-FSL Top 15 index both went up by 0.61% and 0.75% respectively, ending
the week’s trading at a year-to-date change of 25.45% and 30.42% accordingly.
BOPP 0.70 0.65 (0.05) -7.14%

EGL 0.60 0.57 (0.03) -5.00%

Market Movers

FML 9.51 10.55 1.04 10.94% 11 equities recorded price changes last week which was 4 equities short off the previous week’s
fifteen (15) market movers.
GCB 2.25 2.33 0.08 3.56%

GOIL 0.24 0.25 0.01 4.17%

Fan Milk Limited (FML) led the 6 gainers for the period, adding 10.94% to its market value to
reach GH¢10.55p per share. Shareholders’ approval of a bonus issue continue to spur activity in
HFC 0.47 0.45 (0.02) -4.26% the stock as the thought of extra FML shares pushes demand for the stock to record highs.
SCB 45.02 45.13 0.11 0.24%
The petroleum sector also received a boost following price appreciations in Ghana Oil Company
SIC 0.42 0.41 (0.01) -2.38% (GOIL) and Total Petroleum Ghana Ltd. (TOTAL).

SG-SSB 0.60 0.59 (0.01) -1.67% TOTAL went up by 0.53% to hit a year high of GH¢9.45p per share. The stock continues to ride on
TOTAL 9.40 9.45 0.05 0.53%
the back of impressive Q3’2010 earnings report. Total Petroleum reported a 42.3% jump in its net
profit after tax following a 44.6% growth in its turnover. With a closing bid price of GH¢9.50p
UNIL 5.60 5.61 0.01 0.18% last Friday, the stock is expected to increase further in the weeks ahead.

Table 1: Price changes on the GSE
GOIL also added a pesewa to its market value, representing a rise of 4.17%. At a P/E of 8x as
against a market average of 15x, GOIL is reasonably priced. However with crude oil set to flow in
the Jubilee Oil Fields by December 15th and considering government’s stake in both the fields and
GOIL, the Oil Marketing Company has the potential of improving significantly on its fundamentals
and this should impact positively on its share price.

Further details of stock market activities are tabulated above.

 CEDI MAINTAINS ITS UPWARD TRAJECTORY

MID- WEEK YTD The local currency was up by 0.16% against its four major trading currencies by the close of
CURRENCY BUYING* SELLING* RATE CHANGE CHANGE trading on the inter-bank market last week. The upward adjustment came following the
(%) appreciation the Cedi made against the Pound, the Euro and the CFA. In effect, the depreciation
USDGHS 1.4278 1.4490 1.4384 0.0016 0.23% ▼
the Cedi recorded versus the U.S. Dollar over the period did little to prevent the holistic climb.

Cedi continues to benefit from poor European fundamentals

GBPGHS 2.2429 2.2701 2.2565 -0.0445 2.06% ▲
The Cedi rose by 0.78% against the Euro to bring the EURGHS exchange rate from GH¢1.91p in
the previous week to GH¢1.89p at the end of last Thursday’s trading on the inter-bank market.
EURGHS 1.8956 1.9179 1.9068 -0.0556 6.81% ▲ Deteriorating conditions in Spain and Portugal continue to drive the value of the single currency
down globally. Last week, yields on European bonds soared to record highs amidst speculation that
Table 2: Performance of Cedi against major currencies the euro zone crisis will worsen. In light of this trend, we expect the Cedi to strengthen further
against the Euro going into next week’s trading. However, a bailout of the troubled European
*Rate at the close of the last day of trading for the week
▲ signifies that the Cedi has recorded a year-to-date appreciation against a particular
states should bring some reprieve to the 16-nation currency.
currency
▼ signifies that the Cedi has recorded a year-to-date depreciation against a particular The Euro closed at a year-to-date depreciation of 7.54% against the Euro.
currency

CFA mimics Euro’s performance

With its value derived from the performance of the Euro, the GHSXOF exchange rate also lost
ground to the Cedi. The CFA was down by 0.79% and closed the week at a year-to-date
depreciation of 8.15% against the Ghana Cedi.

Pound weakens by 0.37% against the Ghana Cedi

The British Pound also lost 0.37% of its value against the Ghana Cedi despite the gains Sterling
chalked on the international market. Historical analyses reveal a trend which indicates that,
increased remittances and the influx of non-resident Ghanaians from the U.K between November
through to December result in an increased supply of Sterling on the local market. Consequently,
the year-to-date change of the Pound against the Cedi declined further from a previous
depreciation of 2.06% to 2.42%.

U.S. Dollar strengthens both locally and internationally

Fig 2: YTD performance of Pound, Dollar & Euro versus the Cedi
The Ghana Cedi continued to lose ground against the U.S. Dollar on the back of a rallying
greenback on the global market and increased import activities on our local market. With the
declining value of the Euro, the U.S. Dollar has become the safe haven for most currency investors
worldwide as they seek to preserve their wealth. This has seen the value of the dollar surge
significantly in recent times. The dollar also received a boost following news of improved consumer
confidence in the U.S.

Also, the Christmas festivities have also brought to our local market heightened import activities and
this has also put an added pressure on the Cedi with respect to the dollar.
 SIC-FSL
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