All-share index slides
Accra (Greater Accra) 26 April 2000
The All-Share Index of the Ghana Stock Exchange (GSE) on Tuesday slid by 1.09 points after the Easter holidays in the face of rapid depreciation of the cedi against major foreign currencies, especially, the dollar and the pound.
The All-Share Index, the main market indicator, has since the year began recording 17.32 per cent change on the value of equities as against a negative 15.22 per cent for last year.
Mr. Francis Tweneboa, General Manager of the GSE, has, however, predicted that the slide of the cedi may erode the slight recovery made by the Index which opened trading on Tuesday at 863.70 points from last Wednesday's close of 864.79 points. It opened the year at 737.21 points.
Mr. Tweneboa said portfolio investors who are mainly foreigners and own a greater proportion of investments on the bourse have started withdrawing due to the slide of the cedi. The exchange could only absorb the shocks if it had strong local investors, but the situation does not look pleasant with the Social Security and Insurance Trust being the only major local investor.
He said the banks and insurance companies are unable to invest on the bourse due to reserve and prudential requirements by the Bank of Ghana and the Insurance Commission respectively.
"The only thing that can prevent the exchange's performance this year from going down with the cedi is an immediate intervention by the government."
Tuesday's trading saw the exchange recording two price depreciation in Unilever Ghana Limited (UNIL) and Aluworks Company Limited (ALW).
The huge gain of 1,500 cedis in the share price of Standard Chartered Bank (SCB), the highest priced of the 22 listed equities and the second with the highest market capitalisation after Ashanti Goldfields, could not stop the slide. Twelve of the equities sold a total of 47,200 shares, which was less than 121,500 shares traded on Wednesday.
The market, however, continued to be offer-driven as total offers went up to 2.7 million from 2.3 million posted at the previous session. Bids opened the week lower at 79,900 from 200,800 shares.
Market capitalisation decreased from 3,397.85 billion cedis to 3,396.12 billion cedis. In the broader market, four price changes - two up and two down.
SCB went up by 1,500 cedis to 28,500 cedis while Mobil Oil Ghana Limited (MOGL) gained 50 cedis to close trading at 14,850 cedis. UNIL and ALW lost 400 cedis and 50 cedis at 1,900 cedis and 2,400 cedis respectively.
The following are the last prices of listed equities in cedis:
ABL 506
AGC 18,600
ALW 2,400 -50
BAT 459
CFAO 38
EIC 1,880
FFML 975
GBL 1,450
GCB 975
GGL 965
HFC 807
MGL 200
MLC 150
MOGL 14,850 +50
PAF 294
PZ 800
SCB 28,500 +1,500
SPPC 150
SSB 1,998
UNIL 1,900 -400
UTC-E 125
CMLT 422
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