STOCK MARKET REVIEW

The stock market closed weaker in the review week as the laggards dominated the gainers. The GSE Composite Index (GSE CI) shed 2.23 points (-0.10%) to close at 2,185.81 points, compared to 2,188.05 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 3.16%. The GSE Financial Stocks Index also shed 4.13 points to close the week at 1,961.23 points, increasing its YTD loss to 2.89%.

Market capitalization meanwhile decreased by 0.04% for the week from GH¢56,281.93 million at the close of the previous week to GH¢ 56,258.77 million at the close of the week. This represents YTD decline of 0.94%.   

There was less activity on the market compared with that of the preceding week. A sum of   2,120,779 shares, valued at GH¢1,639,780.11 changed hands for the week, compared with 9,896,381 shares valued at GH¢7,427,841.99 recorded in the preceding week. MTNGH  dominated both volume and value of shares traded for the week. MTNGH accounted for 94.75% (2,009,461 shares) of total volume of shares and 85.55% (GH¢1,402,799.48) of total value of shares traded for the week.

The market closed on Friday with  two gainers and 4 laggards for the week. Camelot  Ghana Ltd. led the gainers, closing at GH¢0.1 from GH¢0.09 at week open. Cal Bank Ltd. on the other hand led the laggards. Its share price closed at GH¢0.90 from GH¢0.92 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 third straight week. It traded at GH¢5.3278/$ on Friday, compared with GH¢5.3001/$ at week open, reflecting w/w depreciation and YTD appreciation of 0.52% and 3.86% respectively against the USD. This compares with YTD depreciation of 8.02% a year ago.

The Cedi meanwhile strengthened against the Euro on the week. It traded at GH¢5.9212/€, compared with GH¢5.9336/€ at week open, reflecting w/w and YTD appreciations of 0.21% and 4.90% respectively against the Euro. This compares with YTD depreciation of 7.18% a year ago.

The Cedi likewise strengthened against the GBP on the week. It traded at GH¢6.6694/£, compared with GH¢6.8471/£ at week open, reflecting w/w and YTD appreciations of 2.67% and 9.70% respectively against the GBP. This compares with YTD depreciation of 11.29% a year ago.

The Cedi again strengthened against the CAD for the week. It opened at GH¢3.9539/C$ but closed at GH¢3.8322/C$, reflecting w/w and YTD appreciations of 3.17% and 11.37% respectively against the CAD. This compares with YTD depreciation of 9.95% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢889.68 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,992.63 million raised in the previous week.

The 91–Day and 364-Day Bills added 1bp each to settle at 14.76% and 17.80% respectively. The 182-Day Bill however shed 11bp to settle at 15.18%

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices plunged on the week as several investors liquidate their positions for cash and also cover for losses in other asset classes, occasioned by the CoVid-19 pandemic. Gold futures settled at US$1,516.70 per ounce on Friday, reflecting w/w and YTD losses of 9.31% and 0.28% respectively.

Oil prices continued their downward trajectory, weighed by the impact of the CoVid-19 on demand and Saudi Arabias trade dispute with Russia. Brent futures traded at US$33.85 a barrel on Friday, reflecting w/w and YTD losses of 25.23% and 48.71% respectively.

Prices of Cocoa reversed gains posted in previous sessions for the week in review. Cocoa futures settled at US$2,482.00 per tonne on Friday, reflecting w/w and YTD losses of 8.14% and 2.28% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Loose Credit: A central bank policy designed to stimulate economic growth by lowering short term interest rates, making money less expensive to borrow. It is also called accommodative monetary policy or easy monetary policy.

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.