Stock market sentiments remain bearish


Market sentiments remained bearish for May as the Ghana Stock Exchange (GSE) – Composite Index failed to find support at the 3,400 levels. The benchmark index closed the May transactions at 3,167.5 points.

According to Nordea Capital Investment Stock expert review of the May trading, made available to Ghana News Agency in Accra, the news of a further cut in monetary policy rate to 17 per cent failed to calm investors as they exited Ghanaian equities.

According to the Nordea Capital Stock Expert, the selling pressures intensified across sectors as profit-taking led to several equities erasing some of their earlier gains, whiles some investors sought positions in certain dividend-paying stocks.

Consequently, ten equities edged higher whiles nine declined, but the quantum of losses was enough to keep the bourse lower. Enterprise Group Limited backtracked by 27.5 per cent to close at GH¢3.00 per share.

CAL Bank lost 26.4 per cent during the month to close at GH¢1.45 per share; CAL’s profit after tax reduced by 6 per cent to GH¢32.1 million on account of slower growth in interest income.

According to the Nordea Capital Stock review for the month, the Standard Chartered Bank dropped 25.6 per cent as a result of profit-taking, which also affected Societe Generale.

Other losers for the month under review included Total Ghana Limited (-15 per cent), GOIL (-10.6 per cent), Ecobank Transnational Incorporated (-9.1 per cent), Fan Milk Limited (-6.5 per cent) and Camelot (-6.3 per cent).

According to Nordea Capital Investment Stock Expert review, the small caps recorded the biggest gains for the month; led by Produce Buying Company, which added a quarter to its value (+25 per cent) to close at GH¢0.05 per share.

The GSE is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990.

Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.

Source: GNA


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