STOCK MARKET REVIEW

The stock market closed stronger for the week with gains in three counters eclipsing a loss in a lone counter. The GSE Composite Index (GSE CI) moderated by 6.55 points (-0.29%) to close at 2,252.13points, compared to 2,258.68 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 0.22%. The GSE Financial Stocks Index also shed 12.19 points to close the week at 2007.45 points, representing YTD loss of 0.60%.

Market capitalization also declined by -0.12% for the week from GH¢56,806.00 million at the close of previous week to GH¢56,737.00 million at the close of the week. This represents YTD increase of 0.10%.   

There was less activity on the market compared with the preceding week. A sum of   1,891,617 shares, valued at GH¢1,080,879.56 changed hands for the week, compared with total volume and value of 16,983,146 and GH¢12,440,174.20 recorded in the preceding week respectively. MTN Ghana dominated both volume and value of shares traded for the week respectively. It accounted for 54.90% (1,038,564 shares) of total volume of shares and 67.26% (GH¢727,048.80 ) of total value of shares traded for the week.

SIC Insurance Company Ltd. led the advancers with a 12.50% increase in price, closing at GH¢0.09 per share. Ecobank Ghana Ltd. meanwhile led the laggards with a 4.20% decrease in price. Its share price closed at GH¢7.75 per share from GH¢8.09 per share at week open. Twenty-nine (29) 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¢5.5363/$ on Friday, compared with GH¢5.5342/$ at week open, reflecting w/w and YTD depreciations of 0.04% and 0.05% respectively against the USD. This compares with YTD depreciation of 0.92% a year ago.

The Cedi meanwhile strengthened against the Euro on the week. It traded at GH¢6.1493/€, compared with GH¢6.1714/€ at week open, reflecting w/w and YTD appreciations of 0.36% and 1.01% respectively against the Euro. This compares with YTD depreciation of 2.05% a year ago.

The Cedi also weakened against the GBP on the week. It traded at GH¢7.2365/£, compared with GH¢7.2338£ at week open, reflecting w/w depreciation and YTD appreciation of 0.04% and 1.10% respectively against the GBP. This compares with YTD depreciation of 0.89% a year ago.

The Cedi closed stronger against the CAD for the week. It opened at GH¢4.2626/C$ but closed at GH¢4.2438/C$, reflecting w/w and YTD appreciations of 0.44% and 0.57% respectively against the CAD. This compares with YTD depreciation of 3.59% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢720.79 million in the week under review across the 91-day, and 182-day treasury bills. This compared with GH¢499.92 million raised in the previous week.

The 91–day added bps to close at 14.69% and whilst the 182-day Treasury bill stayed flat at 15.17%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices edged higher on the week following a tepid U.S. jobs growth for December. Gold futures settled at US$1,560.10 per ounce on Friday, reflecting w/w and YTD gains of 0.50% and 2.57% respectively.

Oil prices closed tallied losses for the week following an easing of geo-political  tensions in the Middle East. Brent futures traded at US$64.98 a barrel on Friday, reflecting w/w and YTD losses of 5.28% and 1.55% respectively.

Prices of Cocoa edged higher for the week. Cocoa futures settled at US$2,589.00 per tonne on Friday, reflecting w/w and YTD gains of 2.78% and 1.93% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Diluted Earnings Per Share: Earnings per share, including common stock, preferred stock, unexercised stock options, unexercised warrants, and some convertible debt. In companies with a large amount of convertibles, warrants and stock options, diluted earnings per share are usually a more accurate measure of the company's real earning power than earnings per share.

Sourcewww.investorwords.com

ABOUT CIDAN

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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.