STOCK MARKET REVIEW

The stock market closed stronger for the week with gains in four counters eclipsing losses in two counters. The GSE Composite Index (GSE CI) moderated by 19.78 points (0.92%) to close at 2,169.48 points, compared to 2,149.70 points at the previous week’s close. This translates into a year-to-date (YTD) loss of 15.66%. The GSE Financial Stocks Index also gained 36.81 points (2.04%) to close the week at 1,843.54 points, representing YTD loss of 14.40%.

Market capitalization increased by 0.66% for the week from GH¢55,519.07 million at the close of the preceding week to GH¢55,887.93 million. This represents YTD decline of 8.59%.   

There was less activity on the market compared with the preceding week. A total of 1,245,614 shares, valued at GH¢2,121,947.34 changed hands for the week, compared with total volume and value of 8,831,550 and GH¢7,153,436.70 recorded in the preceding week respectively. Ghana Oil Limited dominated both volume and value of shares traded for the week. GOIL accounted for 46.98% (585,214 shares) of total volume of shares traded and 46.88% (GH¢2,121,947.34) of total value of shares traded.

The market closed on Friday with two laggards and four advancers for the week. Enterprise Group Ltd led the laggards with a 3% decline in price, closing at GH¢1.6 per share. Societe Generale Ghana Limited meanwhile led the advancers with a 15.00% increase in price. Its share price closed at GH¢0.69 per share from GH¢0.60 per share at week open. Twenty-seven (27) 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 recorded a third weekly decline against the USD for the review week. It traded at GH¢5.3598/$ on Friday, compared with GH¢5.3372/$ at week open, reflecting w/w and YTD depreciations of 0.42% and 10.07% respectively against the USD. This compares with YTD depreciation of 7.80% a year ago.

The Cedi on the other hand strengthened against the Euro on the week. It traded at GH¢5.9100/€, compared with GH¢5.9618/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.88% and 6.72% respectively against the Euro. This compares with YTD depreciation of 2.51% a year ago.

The Cedi also strengthened against the GBP on the week. It traded at GH¢6.8691/£, compared with GH¢6.9138/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.65% and 10.16% respectively against the GBP. This compares with YTD depreciation of 4.49% a year ago.

The Cedi further strengthened against the CAD for the week. It opened at GH¢4.0580/C$ but closed at GH¢4.0543/C$, reflecting w/w appreciation and YTD depreciation of 0.09% and 12.79% respectively against the CAD. This compares with YTD depreciation of 3.15% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,529.90 million in the review week across the 91-day, 182-day, 364-day and 2-Year treasury papers. This compares with GH¢518.27 million raised in the previous week.

The 91–day and 182-day Treasury papers stayed flat at 14.69% and 15.13% respectively. The 364–day Treasury bill and the 2-Year Treasury Note however added 2bps and 50bps to settle at 17.92% and 19.50% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold tallied its biggest weekly loss in 3 years on hopes of a positive trade deal between the U.S. and China, higher yields on U.S. investment securities and stronger U.S. dollar. Gold futures trimmed 3.21% on the week to settle at US$1,462.90 per ounce on Friday, reflecting YTD gain of 14.17%.

Oil closed higher for the week as investors kept hope of a positive deal between the U.S. and China. Prices were also influenced by data showing a record high Chinese crude imports in October and a third weekly decline in U.S. oil rigs. Brent futures traded at US$62.51 a barrel on Friday, reflecting w/w and YTD gains of 1.33% and 16.19% respectively.

Price of Cocoa also closed higher on the week. Cocoa futures settled at US$2,503.00 per tonne on Friday, reflecting gains of 1.01% for the week and 3.60% for the year.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Annuity: An annuity is a financial product that pays out a fixed stream of payments to an individual. These financial products are primarily used as an income stream for retirees. Annuities are created and sold by financial institutions, which accept and invest funds from individuals. Upon annuitization, the holding institution will issue a stream of payments at a later point in time.

The period of time when an annuity is being funded and before pay-outs begin is referred to as the accumulation phase. Once payments commence, the contract is in the annuitization phase.

Source:www.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).