SIC Brokerage Market Recap WE 22-5-20

26th May 2020 | Source: sicbrokerage.com

Stock Market Highlights

•The GSE-CI recovered from losses last week, up 1.42% due to gains in Ecobank Ghana (+6.43%) and MTN Ghana (+5.17%) to close at 2,011.97 with a -10.86% year-to-date return. Market capitalization followed the market’s trend, up 0.54% to settle at GH¢54.28 billion.

•The GSE Financial Index however declined marginally to close at 1,840.80 with a -8.86% year-to-date return due to downward price changes in five banking and insurance stocks.

Trading Activity Dropped

•A total of 1,203,606 shares valued at GH¢3,238,207 changed hands this week compared to 11,749,650 shares valued at GH¢8,159,296 last week.

•Ecobank Ghana dominated trades, accounting for 63.48% of total value traded.

Outlook

•We expect a slowdown in trading activity next week due to the coronavirus outbreak.

Tullow Oil Ghana Plc (TLW)

Kweku Awotwi, MD of Tullow Ghana, and Executive Vice President of Tullow Oil Plc, will be retiring from Tullow on 30th June, 2020. He will hand over his responsibilities to Wissam Al Monthiry who becomes Managing Director, Tullow Ghana and Cynthia Lumor, Corporate Affairs Director.

Investors looking to purchase/sell stocks and treasury bills can do so through SIC Brokerage Ltd.

Fixed Income Market Highlights

•Primary Market

•At last week’s auction, government accepted 86.14% of its GH¢758 million target. The breakdown is GH¢531.39 million in 91 day bills, GH¢85.25 million in 182 day bills and GH¢36.30 million in 364 day bills, compared with GH¢699.05 million in 91 day bills, GH¢116.64 million in 182 day bills and GH¢18.19 million in 364 day bills in the week before.

•The yield of the 91 day bill declined by 8 bps to 13.97% while the average yield of the 182 and 364 day bills declined to 14.00% and 16.70%, respectively.

•The target for the next auction is GH¢909 million in 91 and 182 day bills.

•

•Secondary Market

•Trading activity declined by 40.95% as 2,194 trades valued at GH¢1,057.89 million changed hands last week compared with 1,422 trades valued at GH¢1,791.39 million last week. Securities maturing in the medium term (2 – 10 years) dominated trading, accounting for 56% of trading activity while securities with short term maturities (less than 2 years) accounted for 38% of trades.