STOCK MARKET REVIEW

The stock market closed closed weaker for the holiday shortened week following losses in 6 counters. The GSE Composite Index (GSE CI) shed 51.89 points (2.41%) to close at 2,100.74 points, compared to 2,152.63 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 6.93%. The GSE Financial Stocks Index howeer closed higher on the back of gains in Ecobank and CAL Bank. The index added 15.19 points to close the week at 1,906.41 points, reducing its YTD loss to  5.61%.

Market capitalization decreased by 0.97% for the week from GH¢55,739.11 million at the close of the previous week to GH¢55,200.79 million at the close of the week. This represents YTD decline of 2.80%.   

There was significant activity on the market compared with that of the preceding week. A total of 27,413,831 shares, valued at GH¢19,716,661.21 changed hands for the week, compared with 419,977 shares valued at GH¢722,370.02 recorded in the preceding week. MTN GH  dominated both volume and value of shares traded for the week respectively. MTNGH accounted for 99.13% (27,176,235 shares) of total volume of shares traded and 93.54% (GH¢18,441,982.15) of total value of shares traded for the week.

The market closed on Friday with  6 laggards and 2 gainers. Ecobank Ghana Ltd. led the gainers with its share price closing at GH¢7.50 from GH¢7.00. On the flip side MTN Ghana Ltd led the laggards. It closed trading at GH¢0.62 from GH¢0.69 at week open. Thirty two (32) counters remained flat at the closing bell on Thursday.

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

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CURRENCY MARKET

The Cedi weakened against the USD for the tenth straight week. It traded at GH¢5.6010/$ on Thursday, compared with GH¢5.5449/$ at week open, reflecting w/w and YTD depreciations of 1.00% and 1.20% respectively against the USD. This compares with YTD depreciation of 5.30% a year ago.

The Cedi also weakened against the Euro on the week. It traded at GH¢6.1276/€, compared with GH¢5.9912/€ at week open, reflecting w/w depreciation and YTD appreciation of 2.23% and 1.37% respectively against the Euro. This compares with YTD depreciation of 3.26% a year ago.

The Cedi similarly weakened against the GBP on the week. It traded at GH¢7.0584/£, compared with GH¢6.8366/£ at week open, reflecting w/w depreciation and YTD appreciation of 3.14% and 3.65% respectively against the GBP. This compares with YTD depreciation of 7.80% a year ago.

The Cedi further weakened against the CAD for the week. It opened trading at GH¢3.9329/C$ but closed at GH¢4.0314/C$, reflecting w/w depreciation and YTD appreciation of 2.44% and 5.87% respectively against the CAD. This compares with YTD depreciation of 6.83% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢623.39 million in the week under review across the 91-Day, and 182-Day Treasury Bills. This compared with GH¢1,134.85 million raised in the previous week.

The 91–Day and 182-Day Bills both shed 11bps and 2bps to settle at 13.92% and 14.01% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices recovered on Friday following a threat of fresh tariffs on China by President Donald Trump. The yellow metal however tallied losses on the week as the gains on Friday were not able to offset losses recorded earlier in the week. Gold futures settled at US$1,700.90 per ounce on Friday, reflecting w/w loss and YTD gain of 2.00% and 11.83% respectively.

Oil prices closed stronger for the week following the easing of lockdown measures by some economies and a drop in gasoline inventories. Brent futures traded at US$26.44 a barrel on Friday, reflecting w/w gain and YTD loss of 23.32% and 59.94% respectively.

Prices of Cocoa also closed stronger for the week. Cocoa futures settled at US$2,420.00 per tonne on Friday, reflecting w/w gain and YTD loss of 3.37% and 4.72% respectively.

International Commodity Prices

Source: www.investing.com

 

BUSINESS TERM OF THE WEEK

Margin: 1. Using money borrowed from a broker/dealer to purchase securities; here also called buying on margin.

2. The amount of equity required for an investment in securities purchased on credit.

3. The face value of a loan minus the value of the pledged collateral.

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.