STOCK MARKET REVIEW

The stock market closed weaker in the review week on the back of losses in 6 counters. The GSE Composite Index (GSE CI) shed 58.22 points (2.85%) to close at 1,983.83 points, compared to 2,042.05 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 12.11%. The GSE Financial Stocks Index also shed 32.90 points to close the week at 1,841.15 points, increasing its YTD loss to  8.84%.

Market capitalization decreased by 1.11% for the week from GH¢54,591.93 million at the close of the previous week to GH¢53,987.89 million at the close of the week. This represents YTD decline of 4.94%.   

There was relatively less activity on the market compared with that of the preceding week. A total of  11,749,650 shares, valued at GH¢8,159,295.90 changed hands for the week, compared with   24,261,385 shares valued at GH¢ 15,315,135.68 recorded in the preceding week. MTNGH  dominated both volume and value of shares traded for the week respectively. MTNGH accounted for 97.29% (11,431,583 shares) of total volume of shares traded and 81.34% (GH¢6,636,395.14) of total value of shares traded for the week.

The market closed on Friday with  six laggards and three gainers. Guinness Ghana Breweries Ltd. led the laggards for the week after closing trading at GH¢1.40 from GH¢1.60 at week open. Total Petroleum Ghana Ltd. Led the gainers, its share price closed at GH¢2.50 from GH¢2.40 at week open.

 Thirty-one (31) counters remained flat at the closing bell on Friday.

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 twelfth straight week. It traded at GH¢5.6127/$ on Friday, compared with GH¢5.6029/$ at week open, reflecting w/w and YTD depreciations of 0.17% and 1.41% respectively against the USD. This compares with YTD depreciation of 5.46% a year ago.

The Cedi meanwhile strengthened against the Euro for the second straight week. It traded at GH¢6.0700/€, compared with GH¢6.0844/€ at week open, reflecting w/w and YTD appreciations of 0.24% and 2.33% respectively against the Euro. This compares with YTD depreciation of 3.16% a year ago.

The Cedi likewise strengthened against the GBP on the week. It traded at GH¢6.8018/£, compared with GH¢6.9673/£ at week open, reflecting w/w and YTD appreciations of 2.43% and 7.57% respectively against the GBP. This compares with YTD depreciation of 4.95% a year ago.

The Cedi again strengthened against the CAD for the week. It opened trading at GH¢4.0216/C$ but closed at GH¢3.9801/C$, reflecting w/w and YTD appreciations of 1.04% and 7.24% respectively against the CAD. This compares with YTD depreciation of 6.75% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢652.94 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,502.64 million raised in the previous week.

The 91–Day, 182-Day and 364-Day Bills trimmed 8bps, 2bps and 5bps to settle at 13.87%, 14.00% and 16.70% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices notched a second straight weekly gain supported by a dismal data on U.S. retail sales and industrial production for April 2020. Gold futures settled at US$1,756.30 per ounce on Friday, reflecting w/w and YTD gains of 2.47% and 15.47% respectively.

Oil prices added gains for the third week following a 3.9% year-on-year growth in China’s industrial production in April. Brent futures traded at US$32.50 a barrel on Friday, reflecting w/w gain and YTD loss of 4.94% and 50.76% respectively.

Prices of Cocoa tallied losses for the second straight week. Cocoa futures settled at US$2,399.00 per tonne on Friday, reflecting w/w and YTD losses of 0.79% and 5.55% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Divestment: Divestment is the process of selling subsidiary assets, investments or divisions in order to maximize the value of the parent company. Also known as divestiture, it is the opposite of an investment and is usually done when that subsidiary asset or division is not performing up to expectations. Companies can choose to deploy this strategy to satisfy either financial, social or political goals..

Sourceww.investopedia.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.