STOCK MARKET REVIEW

The Ghana Stock Exchange retreated for the week on the back of  a decline in GCB Bank’s share price. The GSE Composite Index (GSE CI) lost 0.25 points (-0.01%) to close at 2,690.94  points, reflecting year-to-date (YTD) loss of 3.53%. The GSE Financial Stocks Index (GSE FI) also lost 0.46 points (-0.02%) to close at  2,209.24 points, reflecting year-to-date (YTD) gain of 2.67%.

Market capitalization inched up marginally by 0.07% to close the week at GH¢63,859.57 million, from GH¢63,817.52 million at the close of the previous week. This reflects YTD decrease of 0.99%.

Trading activity registered a total of 10,671,215  shares valued at GH¢10,716,327.61 changing hands, compared with  87,630,871  shares, valued at GH¢89,227,903.01  in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 95.02%  and 94.07% of volume and value of shares traded respectively .  

The market ended the week with no leader and 1 laggard as indicated on the table below. `

CURRENCY MARKET

The Cedi marginally depreciated against the USD for the week. It traded at GH¢7.1132/$, compared with GH¢7.1128/$ at week open, reflecting w/w and YTD depreciations of 0.01% and 15.56% respectively. This compares with YTD appreciation of 0.50% a year ago.            

The Cedi appreciated against the GBP for the third consecutive week. It traded at GH¢8.7859/£, compared with GH¢8.9333/£ at week open, reflecting w/w appreciation  and YTD depreciation of 1.68% and 7.50% respectively. This compares with YTD depreciation of 1.80% a year ago.

The Cedi  retreated  against  the Euro for the week. It traded at GH¢7.5280/€, compared with GH¢7.4963/€ at week open, reflecting w/w and YTD depreciation of 0.42% and 9.30% respectively. This compares with YTD appreciation of 1.46% a year ago.       

The Cedi meanwhile appreciated against the Canadian Dollar for the week. It opened at GH¢5.5547/C$ but closed at GH¢5.5235/C$, reflecting w/w appreciation and YTD depreciation of 0.56% and 14.16% respectively. This compares with YTD depreciation of 3.97% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,130.58 million for the week across the 91-Day, 182-Day  and 364-Day Treasury Bills, 2-Year Fixed Rate Note and 5-Year Fixed Rate Bond. This compared with GH¢453.36 million raised in the previous week.

The 91-Day Bill settled at 17.88% p.a from  17.41% p.a. last week whilst the 182-Day Bill settled at 18.81% p.a from  18.53% p.a. last week. The 364-Day Treasury Bill settled at 20.65% p.a from 19.67% p.a last week. The 2-year FXR Note settled at 21.50% p.a whiles the 5-Year FXR Bond settled at 22.30%.

The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude oil prices rose up again for the week. However, worries about an economic downturn that could impact fuel demand persisted. Brent futures traded at US$113.12 a barrel on Friday, compared to US$107.58 at week open. This reflects w/w and YTD gains of 5.15% and 45.44% respectively.

Gold prices were up on  Friday and for the week despite a rally in the U.S dollar and Treasury yields over the U.S. Federal Reserve’s hawkish stance. Gold settled at US$1,883.50, from US$1,863.60 last week, reflecting w/w and YTD  appreciation of 1.07% and 3.00% respectively.

Prices of Cocoa retreated for the week. The commodity traded at US$2,471.00 per tonne on Friday, from US$2,604.50 last week, reflecting  w/w and YTD loss of 5.13% and 1.94% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Price Skimming: Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment of the population. The skimming strategy gets its name from "skimming" successive layers of cream, or customer segments, as prices are lowered over time.

Source: https://www.investopedia.com/terms/p/priceskimming.asp

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DisclaimerThe contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation.

The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.