Weekly Capital Market Recap 24-04-20

27th Apr 2020 | Source: sicbrokerage.com

Stock Market Highlights

•The benchmark index reversed losses from previous weeks, advancing by 2.19% due to gains in banking and telecom stocks to close at 2,152.63 with a -4.63% year-to-date return. Market capitalization increased by 0.87% to settle at GH¢55.74 billion.

•Ecobank Ghana (+20.69%) pushed the GSE-FI up by 3.45% to 1,891.23 with a -6.36% year-to-date return.

Trading Activity Declined

•A total of 419,977 shares valued at GH¢722,370 changed hands this week compared to 1,001,178 shares valued at GH¢1,502,107 last week.

•Ecobank Ghana dominated trades, accounting for 38.11% of total value traded.

Outlook

•We expect a slowdown in trading activity next week due to the coronavirus outbreak.

Ghana Stock Exchange (GSE)

The Ghana Stock Exchange (GSE), following the directives on public gatherings given by the president of the Republic of Ghana Nana Addo Dankwa Akufo Addo on 15th March, 2020 has advised all listed companies to adhere to the directives with regard to holding of their AGMs.

Investors looking to purchase/sell stocks and treasury bills can do so through SIC Brokerage Ltd.

Fixed Income Market Highlights

•Primary Market

•Treasury securities were undersubscribed by 6% at today’s auction. Government accepted GH¢821.48 million of 91 day bills, GH¢172.73 million of 182 day bills and GH¢140.64 million of 364 day bills compared to GH¢492.38 million of 91 day bills and GH¢17.16 million of 182 day bills last week.

•The yield on the 91 and 182 day bills increased by 17 bps and 5 bps to 14.03% and 14.03, respectively. The 364 day bill was bought at an average yield of 16.74%.

•The target for the next auction is GH¢603 million in 91 and 182 day bills.

•

•Secondary Market

•Activity levels jumped 62.84% as 1,422 trades valued at GH¢1,791.39 million changed hands last week compared with 1,066 trades valued at GH¢1,100.11 million in the week before. Securities maturing in the medium term (2 – 10 years) dominated, accounting for 67% of trading activity while securities with short term maturities (less than 2 years) accounted for 32% of trades.