STOCK MARKET REVIEW

The stock market closed weaker for the week with gains in two counters not able to overturn losses in three counters. The GSE Composite Index (GSE CI) moderated by 9.97 points (-0.46%) to close at 2,137.91 points, compared to 2,147.89 points at the previous week’s close. This translates into a year-to-date (YTD) loss of 16.88%. The GSE Financial Stocks Index however advanced by 5.61 points (0.31%) to close the week at 1,788.79 points, representing YTD loss of 16.94%.

Market capitalization decreased by -0.18% for the week from GH¢55,665.92 million at the close of the preceding week to GH¢55,563.37 million. This represents YTD decline of 9.12%.   

There was significant activity on the market compared with the preceding week. A total of   5,087,757 shares, valued at GH¢8,961,600.06 changed hands for the week, compared with total volume and value of 4,511,759 and GH¢1,116,976.89 recorded in the preceding week respectively. Scancom Plc. (MTN) dominated volume whilst Standard Chartered Bank (SCB) dominated value of shares traded for the week. MTN accounted for 63.06% (3,208,480 shares) of total volume of shares traded and SCB accounted for 46.48% (GH¢4,165,404.90) of total value of shares traded.

The market closed on Friday with three laggards and two advancers for the week. SIC Insurance Company led the advancers with a 12.50% increase in price, closing at GH¢0.09 per share. Total Petroleum Ghana Ltd. meanwhile led the laggards with a 2% decrease in price. Its share price closed at GH¢2.92 per share from GH¢2.98 per share at week open. Twenty-eight (28) counters remained flat at the closing bell on Friday.

The graphs and table below highlight activity on the market during the week.

CURRENCY MARKET

The Cedi weakened against the USD in the week under review. It traded at GH¢5.5254/$ on Friday, compared with GH¢5.3633/$ at week open, reflecting w/w and YTD depreciations of 2.93% and 12.77% respectively against the USD. This compares with YTD depreciation of 8.12% a year ago.

The Cedi also weakened against the Euro on the week. It traded at GH¢6.0785/€, compared with GH¢5.9386/€ at week open, reflecting w/w and YTD depreciations of 2.30% and 9.30% respectively against the Euro. This compares with YTD depreciation of 2.82% a year ago.

The Cedi again weakened against the GBP on the week. It traded at GH¢7.1322/£, compared with GH¢6.9078/£ at week open, reflecting w/w and YTD depreciations of 3.15% and 13.48% respectively against the GBP. This compares with YTD depreciation of 2.58% a year ago.

The Cedi further weakened against the CAD for the week. It opened at GH¢4.0494/C$ but closed at GH¢4.1540/C$, reflecting w/w and YTD depreciations of 2.52% and 14.88% respectively against the CAD. This compares with YTD depreciation of 2.58% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢728.15 million in the week under review across the 91-day, 182-day and 364-day treasury bills and the tap issue of a 5-year bond maturing in November 2022. This compared with GH¢867.56 million raised in the previous week.

The 91–day and 364-dat Treasury bills shed 2bps and 8bps to settle at 14.68% and 17.83% respectively whilst the 182-day Treasury bill stayed flat at 15.14%. The re-opened 5-year Bond settled at a price range of 95.1951 - 93.8345.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices capitalized on a setback in trade negotiations between the U.S. and China, following the signing of a pro-Hong Kong Legislation (which angered China) by President Donald Trump. Gold futures settled at US$1,472.70 per ounce on Friday, reflecting a week gain of 0.62% and YTD gain of 14.94%.

Oil prices were down for the week following concerns over demand in the wake of the setback in the U.S. and China trade deal. Brent futures traded at US$62.43 a barrel on Friday, reflecting w/w loss and YTD gain of 1.51% and 16.04% respectively.

Prices of Cocoa weakened at close of week. Cocoa futures settled at US$2,555.50 per tonne on Friday, reflecting a loss of 2.57% for the week and gain of 5.77% for the year.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Replacement Price: a price at which the replacement for an asset would have to be bought

Sourcewww.investorwords.com

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Disclaimer

The 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.