The performance of the stock market measured by the GSE Composite Index (CI) was 2,454.51 points, up 13.95 points from the previous week’s 2,440.56 points.

Financial stocks this week were the toast of the market as the Financial Stock Index edged 136 basis points higher from 2,125.87 points the previous week. This came on the back of investor reactions to the positive 2018 full year    financial results reported by the financial companies.

Significant price swings caused the market capitalization to dip 0.10% from GH¢59.81 billion the previous week.

By close of the trading week, shares of 22 companies had traded, which resulted in 5gainers and 5 laggards while 12 remained unchanged.

The rise in investor confidence in RBGH caused the stock to gain 14.55% and closed at GH¢0.63; thus leading the pack of gainers. CAL saw price swings between GH¢0.95 and GH¢1.05 during the week; however the stock closed the week at GH¢1.05 which    represented a rise of 0.96% to join the pack of gainers. CAL    announced a final dividend of GH¢0.048 per share for the financial year ended December 31, 2018. Analysts expect the share price to appreciate in the week to follow.

The stock market was characterized by high level liquidity      compared to the previous week. Total number of shares traded was 9% higher than the 732,561 shares that traded the previous week. MTNGH emerged as the most liquid stock for the week with 32% of total market volume. GCB and CAL constituted 23% and 17% respectively of market volume traded.

GCB soars….

GCB posted some impressive results during the week and it     appears to have raised investor confidence. The full year 2018 financial results showed a 52% jump in profits compared to 2017 due to a 13% increase in revenue earned by GCB. In our opinion, the bank is demonstrating strong signs of sustainability after the UT Bank and Capital Bank takeover; the stated capital stands at GH¢500 million, 20% higher than the Central Bank’s minimum requirement. With respect to its operational activities, the          non-performing loans ratio reduced by 400 basis points to 6%. As a result of its impressive performance, analysts expect the price to rise in the coming week and we recommend a buy.

In response to dividend declaration and positive financial results, we expect CAL and EGL to make some gains on its share price