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MACROECONOMIC INDICATORS
STOCK MARKET REVIEW
The stock market closed stronger in the review week on the back of 2 gainers. The GSE Composite Index (GSE CI) gained 28.14 points (1.42%) to close at 2,011.97 points, compared to 1,983.83 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 10.86%. The GSE Financial Stocks Index shed 0.35 points to close the week at 1,840.80 points, increasing its YTD loss to 8.86%.
Market capitalization increased by 0.54% for the week from GH¢53,987.89 million at the close of the previous week to GH¢54,279.82million at the close of the week. This represents YTD decline of 4.42%.
There was relatively less activity on the market compared with that of the preceding week. A total of 1,203,606 shares, valued at GH¢3,238,206.96 changed hands for the week, compared with 11,749,650 shares valued at GH¢8,159,295.90 recorded in the preceding week. CAL Bank & GCB Bank dominated volume and value of shares traded for the week respectively. CAL accounted for 37.01% (445,395 shares) of total volume of shares traded whilst GCB accounted for 16.46% (GH¢ 533,113.87) of total value of shares traded for the week.
The market closed on Friday with seven laggards and two gainers. Fan Milk Ltd. led the laggards for the week after closing trading at GH¢3.39 from GH¢4.00 at week open. Ecobank Ghana Ltd. meanwhile led the gainers, its share price closed at GH¢7.450 from GH¢7.00 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.
|
Best 5 &Worst 5 Performing Stocks |
|
|
Best Performing Stocks: |
YTD Return |
|
NewGold |
74.26% |
|
Inc. SIC Insurance Company Ltd. |
25.00% |
|
Camelot Ghana Ltd. |
22.22% |
|
Dannex Ayrton Starwin Plc. |
2.56% |
|
Standard Chartered Bank |
1.16% |
|
|
|
|
Worst Performing Stocks: |
|
|
Intraveneous Infusion Ltd |
-40.00% |
|
Fan Milk Ltd. |
-17.72% |
|
Guinness Ghana Breweries Ltd. |
-17.16% |
|
Total Petroleum Ghana Ltd. |
-16.67% |
|
Unilever Ghana Ltd. |
-14.76% |
CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.6153/$ on Friday, compared with GH¢5.6127/$ at week open, reflecting w/w and YTD depreciations of 0.05% and 1.45% respectively against the USD. This compares with YTD depreciation of 5.77% a year ago.
The Cedi also weakened against the Euro for the week. It traded at GH¢6.1160/€, compared with GH¢6.0700/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.75% and 1.56% respectively against the Euro. This compares with YTD depreciation of 3.84% a year ago.
The Cedi likewise weakened against the GBP on the week. It traded at GH¢6.8417/£, compared with GH¢6.8018/£ at week open, reflecting w/w depreciation and YTD appreciation of 0.58% and 6.94% respectively against the GBP. This compares with YTD depreciation of 4.99% a year ago.
The Cedi again weakened against the CAD for the week. It opened trading at GH¢3.9801/C$ but closed at GH¢4.0024/C$, reflecting w/w depreciation and YTD appreciation of 0.56% and 6.64% respectively against the CAD. This compares with YTD depreciation of 6.92% a year ago.
|
Weekly Interbank Foreign Exchange Rates |
|||||
|
Currency Pair |
Year Open |
Week Open |
Week Close |
Change % |
YTD % |
|
|
01/01/20 |
18/05/20 |
22/05/20 |
|
|
|
USD/GHS |
5.5337 |
5.6127 |
5.6153 |
-0.05 |
-1.45 |
|
GBP/GHS |
7.3164 |
6.8018 |
6.8417 |
-0.58 |
6.94 |
|
EUR/GHS |
6.2114 |
6.0700 |
6.1160 |
-0.75 |
1.56 |
|
CAD/GHS |
4.2681 |
3.9801 |
4.0024 |
-0.56 |
6.64 |
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢1,071.22 million in the week under review across the 91-Day and 182-Day Treasury Bills. This compared with GH¢652.94 million raised in the previous week.
The 91–Day and 182-Day Bills both inched up by 19bps, and 5bps to settle at 14.06% and 14.05% respectively.
Please see below for more details.
|
Security |
Year Open |
Previous Yield % |
Current Yield % |
Chg % |
YTD % |
|
|
01/01/20 |
15/05/20 |
22/05/20 |
|
|
|
91 Day TB |
14.70 |
13.87 |
14.06 |
1.39 |
-4.32 |
|
182 Day TB |
15.15 |
14.00 |
14.05 |
0.31 |
-7.27 |
|
364 Day TB |
17.90 |
16.70 |
16.70 |
0.00 |
-6.68 |
|
2-Yr FXR TN |
20.95 |
18.75 |
18.75 |
0.00 |
-10.50 |
|
3-Yr Bond |
19.7 |
19.00 |
19.00 |
0.00 |
-3.55 |
|
5-Yr Bond |
19.50 |
21.70 |
21.70 |
0.00 |
11.28 |
|
6-Yr Bond |
21.00 |
21.00 |
21.00 |
0.00 |
0.00 |
|
7-Yr Bond |
16.25 |
16.25 |
16.25 |
0.00 |
0.00 |
|
10-Yr Bond |
19.8 |
19.8 |
19.8 |
0.00 |
0.00 |
|
15-Yr Bond |
19.75 |
19.75 |
19.75 |
0.00 |
0.00 |
|
20-Yr Bond |
20.2 |
20.2 |
20.2 |
0.00 |
0.00 |
Source: Bank of Ghana
COMMODITY MARKET
Gold prices settled lower on the week weighed by a positive stock market performance and the strength of the U.S. Dollar. Gold futures settled at US$1,735.50 per ounce on Friday, reflecting w/w loss and YTD gain of 1.18% and 14.11% respectively.
Oil prices tallied gains for the fourth straight week supported by tensions in China and reduction in U.S. oil rig counts. Brent futures traded at US$35.13 a barrel on Friday, reflecting w/w gain and YTD loss of 8.09% and 46.77% respectively.
Prices of Cocoa posted losses for the third straight week. Cocoa futures settled at US$2,394.00 per tonne on Friday, reflecting w/w and YTD losses of 0.21% and 5.75% respectively.
International Commodity Prices
|
Commodities |
Year Open |
Week Open |
Week Close |
Chg % |
YTD % |
|
|
01/01/20 |
18/05/20 |
22/05/20 |
|
|
|
Brent crude oil (USD/bbl) |
66.00 |
32.50 |
35.13 |
8.09 |
-46.77 |
|
Gold (USD/t oz.) |
1,520.95 |
1,756.30 |
1,735.50 |
-1.18 |
14.11 |
|
Cocoa (USD/MT) |
2,540.00 |
2,399.00 |
2,394.00 |
-0.21 |
-5.75 |
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Silent Partner: A business partner who provides capital but does not actively participate in the management of operations.
Sourceww.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.
