STOCK MARKET REVIEW

The stock market closed stronger in the review week. The GSE Composite Index (GSE CI) added 8.32 points (0.37%) to close at 2,248.75 points, compared to 2,240.42 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 0.37%. The GSE Financial Stocks Index also gained 34.44 points to close the week at 2042.34 points, representing YTD gain of 1.12%.

Market capitalization also increased by 0.82% for the week from GH¢56,628.09 million at the close of previous week to GH¢57,093.45 million at the close of the week. This represents YTD increased of 0.53%.   

There was significant activity on the market compared with the preceding week. A sum of   42,030,468 shares, valued at GH¢33,602,321 changed hands for the week, compared with total volume and value of 8,428,735 and GH¢7,843,563.75 recorded in the preceding week respectively. MTN Ghana dominated both volume and value of shares traded for the week respectively. It accounted for 96.95% (40,649,469 shares) of total volume of shares and 82.29% (GH¢27,642,417.52) of total value of shares traded for the week.

Ecobank Transnational Inc. led the advancers on the main market with a 12.50% increase in price, closing at GH¢0.09 per share. MTN Ghana Ltd. meanwhile led the laggards with a 1.4% decrease in price. Its share price closed at GH¢0.68 per share from GH¢0.69 per share at week open. Twenty-four (24) 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 posted gains against the USD for the second straight week. It traded at GH¢5.5267/$ on Friday, compared with GH¢5.5342/$ at week open, reflecting w/w and YTD appreciations of 0.14% and 0.13% respectively against the USD. This compares with YTD depreciation of 2.44% a year ago.

The Cedi also strengthened against the Euro on the week. It traded at GH¢6.0932/€, compared with GH¢6.1400/€ at week open, reflecting w/w and YTD appreciations of 0.77% and 1.94% respectively against the Euro. This compares with YTD depreciation of 1.89% a year ago.

The Cedi however weakened against the GBP on the week. It traded at GH¢7.2234/£, compared with GH¢7.2083£ at week open, reflecting w/w depreciation and YTD appreciation of 0.21% and 1.29% respectively against the GBP. This compares with YTD depreciation of 4.83% a year ago.

The Cedi also closed stronger against the CAD for the week. It opened at GH¢4.2359/C$ but closed at GH¢4.2065/C$, reflecting w/w and YTD appreciations of 0.70% and 1.46% respectively against the CAD. This compares with YTD depreciation of 5.07% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢925.48 million in the week under review across the 91-day, 182-day and 364-day treasury bills. This compared with GH¢2,315.39 million raised in the previous week.

The 91–day and 182-day bills shed 1bp and 2bps to close at 14.69% and 15.15% respectively. The 364-day bill meanwhile added 5bps to settle at 17.88%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices edged higher for the fourth straight week buoyed by fears of the Coronavirus. Gold futures settled at US$1,571.90 per ounce on Friday, reflecting w/w and YTD gains of 0.74% and 3.35% respectively.

Oil prices closed tallied losses for the third straight week as the Coronavirus threatens demand for oil products. Brent futures traded at US$60.69 a barrel on Friday, reflecting w/w and YTD losses of 6.41% and 8.05% respectively.

Prices of Cocoa closed lower for the week. Cocoa futures settled at US$2,733.00 per tonne on Friday, reflecting w/w loss and YTD gain of 2.29% and 7.60% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Management Accounts: Accounting information prepared on a regular basis for presentation to management, in order to facilitate business decisions. Management accounts typically include balance sheets, income statements, and the status of cash flows, as well as the current status of accounts payable and accounts receivable.

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).

Website: www.cidaninvestments.com

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.