STOCK MARKET REVIEW

The stock market closed weaker in the review week on the back of losses in 2 stocks. The GSE Composite Index (GSE CI) shed 7.85 points (-0.37%) to close at 2,135.24 points, compared to 2,143.09 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 5.40%. The GSE Financial Stocks Index also shed 14.49 points to close the week at 1,880.01 points, increasing its YTD loss to  6.91%.

Market capitalization decreased by 0.44% for the week from GH¢55,814.24 million at the close of the previous week to GH¢55,567.30 million. This represents YTD decline of 2.16%.   

There was less activity on the market compared with that of the preceding week. A total of  319,371 shares, valued at GH¢147,203 changed hands for the week, compared with 564,659 shares valued at GH¢1,516,953.21 recorded in the preceding week. Ecobank Transnational Incorporated (ETI) and MTNGH dominated  volume and value of shares traded for the week respectively. ETI accounted for 38.14% (121,820 shares) of total volume of shares traded whilst MTNGH accounted for 46.64% (GH¢68,659.14) of total value of shares traded for the week.

The market closed on Thursday with  two laggards and no advancer. ETI was the worse the laggard for the week. Its share price closed at GH¢0.07 from GH¢0.08(-12.50%). Thirty eight (38) counters remained flat at the closing bell on Thursday.

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

CURRENCY MARKET

The Cedi weakened against the USD for the sixth straight week. It traded at GH¢5.5055/$ on Thursday, compared with GH¢5.4610/$ at week open, reflecting w/w depreciation and YTD appreciation of 0.81% and 0.51% respectively against the USD. This compares with YTD depreciation of 5.23% a year ago.

The Cedi also weakened against the Euro on the week. It traded at GH¢6.0245/€, compared with GH¢5.8973/€ at week open, reflecting w/w depreciation and YTD appreciation of 2.11% and 3.10% respectively against the Euro. This compares with YTD depreciation of 4.13% a year ago.

The Cedi likewise weakened against the GBP on the week. It traded at GH¢6.8643/£, compared with GH¢6.6886/£ at week open, reflecting w/w depreciation and YTD appreciation of 2.56% and 6.59% respectively against the GBP. This compares with YTD depreciation of 7.27% a year ago.

The Cedi again weakened against the CAD for the week. It opened at GH¢3.8683/C$ but closed at GH¢3.9419/C$, reflecting w/w depreciation and YTD appreciation of 1.87% and 8.28% respectively against the CAD. This compares with YTD depreciation of 7.30% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,635.10 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢521.22 million raised in the previous week.

The 91–Day, 182-Day and 364-Day Bills shed 56bps, 82bps and 86bps to settle at 13.88%, 14.13% and 16.79% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold futures notched a third straight weekly gain supported by the announcement of a $2.3 trillion stimulus package by the U.S. Federal Reserve to support the U.S. economy. Gold futures settled at US$1,752.80 per ounce, reflecting w/w and YTD gains of 6.31% and 15.24% respectively.

Oil prices pared losses for the week as the impact of the CoVid-19 weighed on demand. Brent futures traded at US$31.48 a barrel on Thursday, reflecting w/w and YTD losses of 7.71% and 52.30% respectively.

Prices of Cocoa strengthened for the third straight week. Cocoa futures settled at US$2,305.00 per tonne on Friday, reflecting w/w gain and YTD loss of 1.81% and 9.25% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Buy-back: 1. The purchase of a long position to offset a short position.

2. A corporation's repurchase of stock or bonds it has issued. In the case of stocks, this reduces the number of shares outstanding, giving each remaining shareholder a larger percentage ownership of the company. This is usually considered a sign that the company's management is optimistic about the future and believes that the current share price is undervalued. Reasons for buybacks include putting unused cash to use, raising earnings per share, increasing internal control of the company, and obtaining stock for employee stock option plans or pension plans.

Source: www.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.