STOCK MARKET REVIEW

The stock market closed weaker for the week with gains in four counters not able to eclipse losses in five counters. The GSE Composite Index (GSE CI) moderated by 13.23 points (-0.46%) to close at 2,222.86 points, compared to 2,233.17 points at the previous week’s close. This translates into a year-to-date (YTD) loss of 13.58%. The GSE Financial Stocks Index however advanced by 21.20 points (0.26%) to close the week at 1,964.14 points, representing YTD loss of 8.80%.

Market capitalization decreased by 0.19% for the week from GH¢56,544.68 million at the close of the preceding week to GH¢56,438.75 million. This represents YTD decline of 7.68%.   

There was less activity on the market compared with the preceding week. A sum of 824,034 shares, valued at GH¢1,265,039.12 changed hands for the week, compared with total volume and value of 2,621,203 and GH¢1,970,538.34 recorded in the preceding week respectively. MTN and GCB dominated volume and value of shares traded for the week respectively. MTN accounted for 26.75% (220,428 shares) of total volume of shares traded whilst GCB accounted for 53.91% (GH¢1,265,039.12) of total value of shares traded.

Access Bank Ghana Plc led the advancers with a 5.26% increase in price, closing at GH¢5.00 per share. Republic Bank (Ghana) Ltd. meanwhile led the laggards with a 12.73% decrease in price. Its share price closed at GH¢0.48 per share from GH¢0.55 per share at week open. Twenty-four (24) 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 in the week under review. It traded at GH¢5.5396/$ on Friday, compared with GH¢5.5385/$ at week open, reflecting w/w and YTD depreciations of 0.02% and 12.99% respectively against the USD. This compares with YTD depreciation of 8.36% a year ago.

The Cedi meanwhile strengthened against the Euro on the week. It traded at GH¢6.1423/€, compared with GH¢6.1682/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.42% and 10.24% respectively against the Euro. This compares with YTD depreciation of 3.58% a year ago.

The Cedi also strengthened against the GBP on the week. It traded at GH¢7.2292/£, compared with GH¢7.3784/£ at week open, reflecting w/w appreciation and YTD depreciation of 2.06% and 14.64% respectively against the GBP. This compares with YTD depreciation of 2.03% a year ago.

The Cedi also weakened against the CAD for the week. It opened at GH¢4.2040/C$ but closed at GH¢4.2097/C$, reflecting w/w and YTD depreciations of 0.13% and 16.00% respectively against the CAD. This compares with YTD depreciation of 1.09% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,061.59 million in the week under review across the 91-day, 182-day and 364-day treasury bills. This compared with GH¢780.88 million raised in the previous week.

The 91–day and 364-day Treasury bills both stayed flat at 14.70% and 17.90% respectively whilst the 182-day Treasury bill added 1bp to settle at 15.16% and 15.15%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices dipped marginally for the week as data in the U.S. shows an improvement in consumer spending. Gold futures settled at US$1,480.90 per ounce on Friday, reflecting a week loss of 0.02% and YTD gain of 15.58%.

Oil prices closed lower on Friday but picked up gains for the week supported by an easing of the U.S-China trade tensions. Brent futures traded at US$66.14 a barrel on Friday, reflecting w/w and YTD gains of 1.41% and 22.94% respectively.

Prices of Cocoa closed lower for the week. Cocoa futures settled at US$2,417.00 per tonne on Friday, reflecting a loss of 5.95% on the week and gain of 0.04% for the year.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Nest Egg: Colloquial term for a sum of money or funds set aside for purposes like retirement, university tuitions, or to describe the overall wealth of an individual, family or entity.

Sourcewww.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).

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.