STOCK MARKET REVIEW

The stock market closed weaker in the review week as the laggards outpaced gainers. The GSE Composite Index (GSE CI) shed 70.94 points (3.89%) to close at 1,941.03 points, compared to 2,011.97 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 14.01%. The GSE Financial Stocks Index gained 2.29 points to close the week at 1,843.10 points, translating into YTD loss of  8.74%.

Market capitalization decreased by 1.50% for the week from GH¢54,279.82 million at the close of the previous week to GH¢53,542.60 million at the close of the week. This represents YTD decline of 5.72%.   

There was significant activity on the market compared with that of the preceding week. A total of 35,404,330 shares, valued at GH¢21,112,450.95 changed hands for the week, compared with 1,203,606 shares valued at GH¢3,238,206.96 recorded in the preceding week. MTNGH dominated both volume and value of shares traded for the week. MTNGH accounted for 98.75% (34,960,443 shares) of total volume of shares traded and 92.90% (GH¢19,612,468.36) of total value of shares  traded for the week.

The market closed on Friday with  five laggards and a lone gainer. MTN Ghana Ltd. led the laggards for the week after closing trading at GH¢0.55 from GH¢0.61 (-9.84%) at week open. Ecobank Ghana, the sole advancer, closed at GH¢7.49 from GH¢7.45 (+0.54%) at week open.

 Thirty-four (34) counters remained flat at the closing bell on Friday.

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

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢5.6203/$ on Friday, compared with GH¢5.6153/$ at week open, reflecting w/w and YTD depreciations of 0.09% and 1.54% respectively against the USD. This compares with YTD depreciation of 7.33% a year ago.

The Cedi also weakened against the Euro for the week. It traded at GH¢6.2406/€, compared with GH¢6.1160/€ at week open, reflecting w/w and YTD depreciations of 2.00% and 0.47% respectively against the Euro. This compares with YTD depreciation of 4.90% a year ago.

The Cedi likewise weakened against the GBP on the week. It traded at GH¢6.9186/£, compared with GH¢6.8417/£ at week open, reflecting w/w depreciation and YTD appreciation of 1.11% and 5.75% respectively against the GBP. This compares with YTD depreciation of 5.99% a year ago.

The Cedi again weakened against the CAD for the week. It opened trading at GH¢4.0024/C$ but closed at GH¢4.0689/C$, reflecting w/w depreciation and YTD appreciation of 1.63% and 4.90% respectively against the CAD. This compares with YTD depreciation of 8.04% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,327.10 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills and 3-Year Treasury Bond. This compared with GH¢1,071.22  million raised in the previous week.

The 91–Day Bill and 3-Year Bond shed 4bps and 15bps to settle at 14.02% and 18.85% respectively. The 182-Day and 364-Day Bills meanwhile added 2bps, and 18bps to settle at 14.07% and 16.88% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices closed higher on the week supported by renewed tensions between the U.S. and China and remarks from the U.S. Federal Reserve chairman suggesting that full economic recovery would not be attained immediately. Gold futures settled at US$1,751.70 per ounce on Friday, reflecting w/w and YTD gains of 0.93% and 15.17% respectively.

Oil prices recorded marginal gains for the week supported by production cuts. Brent futures traded at US$35.33 a barrel on Friday, reflecting w/w gain and YTD loss of 0.57% and 46.47% respectively.

Prices of Cocoa recovered to post gains for the week. Cocoa futures settled at US$2,454.00 per tonne on Friday, reflecting w/w gain and YTD loss of 2.51% and 3.39% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Impact Fund: A fund whose goal is to implement investments that generate a measurable, beneficial social and/or environmental impact, in addition to a financial return.

Source: www.igi-global.com

ABOUT CIDAN

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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.