DataBank: StanChart, GCB, Société Générale record increased buy interest

The stock market in Ghana has been experiencing shifts in investor interest, with key banking sector companies like Standard Chartered Bank, Ghana Commercial Bank, and Société Générale seeing increased buy interest from institutional investors. On the flip side, companies like Enterprise Group, MTN Ghana, and Cal Bank are facing heightened sell pressure, according to analysts at DataBank. Alex Boahen, Head of Research at DataBank, recently discussed these market movements in an interview on CNBC Africa. Boahen highlighted that the market has been showing signs of growth, with approximately 750,000 Ghana cities traded this week, a significant increase from the previous week's 10 million Ghana cities. He noted that retail investors have been driving this growth, while interest in big names in the banking sector continues to rise. However, Boahen mentioned that offers are currently limited in the market, affecting trading activities. In terms of company news, Boahen mentioned that Guelph's revenue for the full year 2023 amounted to 20.4 billion Ghana cities. Additionally, the stock exchange is anticipating increased participation from domestic businesses, particularly following the 100% fully subscribed bond issuance by Casa Preco. Boahen emphasized the strong demand for banking stocks and the importance of the upcoming earnings season, especially the fourth-quarter results for 2023, in shaping market sentiment. Sectoral performance has been varied, with the FMCG sector driving market growth, including companies like Unilever, GGBL, Farmwork, and Total. Non-financial sectors have shown recovery from the impacts of COVID-19, while the financial sector has been weighed down by the domestic debt exchange. Boahen expressed optimism about the banking sector's recovery and expected positive results in the upcoming earnings season to drive growth. Looking ahead, Boahen expects retail investors to continue dominating the market, with stocks like Access Bank and Das Pharma likely to see increased interest. Although there is strong demand for banking giants like GCB and Standard Chartered Bank, limited offers are expected to constrain significant appreciation in their stock prices. Boahen anticipates marginal increases in the composite index, driven by small-cap companies. As the market dynamics continue to evolve, investors are watching closely for developments. Boahen's insights provide a glimpse into the current market trends and the factors influencing investor decisions. With Nigeria's MPC meeting upcoming, the region's economic landscape remains dynamic, setting the stage for further market movements and potential opportunities for investors.