STOCK MARKET REVIEW

The stock market closed weaker for the week as gains in two counters were wiped out by losses in two counters. The GSE Composite Index (GSE CI) moderated by 11.71 points (-0.52%) to close at 2,240.42 points, compared to 2,252.13 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 0.74%. The GSE Financial Stocks Index however gained 0.45 points to close the week at 2007.90 points, representing YTD loss of 0.58%.

Market capitalization also declined by -0.19% for the week from GH¢56,737.00 million at the close of the previous week to GH¢56,628.09 million. This represents YTD decline of -029%.   

There was significant activity on the market compared with the preceding week. A sum of   8,428,735 shares, valued at GH¢7,843,563.75 changed hands for the week, compared with total volume and value of 1,891,617 and GH¢1,080,879.56 recorded in the preceding week respectively. MTN Ghana dominated both volume and value of shares traded for the week respectively. It accounted for 96.19% (8,079,986 shares) of total volume of shares and 71.89% (GH¢5,638,176.37) of total value of shares traded for the week.

CAL Bank Ltd. led the advancers with a 10.00% increase in price, closing at GH¢0.99 per share. Standard Chartered Bank Gh. Ltd. meanwhile led the laggards with a 2.17% decline in price. Its share price closed at GH¢18.00 per share from GH¢18.40 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 strengthened against the USD in the week under review. It traded at GH¢5.5342/$ on Friday, compared with GH¢5.5363/$ at week open, reflecting w/w appreciation and YTD depreciation of 0.04% and 0.01% respectively against the USD. This compares with YTD depreciation of 1.84% a year ago.

The Cedi also strengthened against the Euro on the week. It traded at GH¢6.1400/€, compared with GH¢6.1493/€ at week open, reflecting w/w and YTD appreciations of 0.15% and 1.16% respectively against the Euro. This compares with YTD depreciation of 1.32% a year ago.

The Cedi again strengthened against the GBP on the week. It traded at GH¢7.2083/£, compared with GH¢7.2365/£ at week open, reflecting w/w and YTD appreciations of 0.39% and 1.50% respectively against the GBP. This compares with YTD depreciation of 2.65% a year ago.

The Cedi further strengthened against the CAD for the week. It opened at GH¢4.2438/C$ but closed at GH¢4.2359/C$, reflecting w/w and YTD appreciations of 0.19% and 0.76% respectively against the CAD. This compares with YTD depreciation of 4.48% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢2,315.39 million in the week under review across the 91-day and 182-day Treasury Bills and the 3-Year Treasury Bond. This compared with GH¢720.79 million raised in the previous week.

The 91–day Treasury Bill and 3-Year Bond added 1bp and 105bps to close at 14.70% and 20.75% respectively. The 182-day Treasury bill however stayed flat at 15.17%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices were largely unchanged at close of week as investors mull over trade agreement between the U.S. and China signed on Wednesday. Gold futures settled at US$1,560.30 per ounce on Friday, reflecting w/w and YTD gains of 0.01% and 2.59% respectively.

Oil prices closed lower for the week on the back of negative speculation surrounding a trade deal between the U.S. and China and an increase in U.S. oil rig count. Brent futures traded at US$64.85 a barrel on Friday, reflecting w/w and YTD losses of 0.20% and 1.74% respectively.

Prices of Cocoa recorded gains for the third straight week in 2020. Cocoa futures settled at US$2,797.00 per tonne on Friday, reflecting w/w and YTD gains of 8.03% and 10.12% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Justified Price: The fair market value for an asset or security. An informed buyer should attempt to purchase an asset at or below this price.

Sourcewww.investorwords.com

ABOUT CIDAN

CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).

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.