Stock Market Highlights
•The benchmark index declined for the second consecutive week, down 2.79% due to losses in nine counters in the banking, insurance, telecom and petroleum marketing sectors to close at a new year low of 2,042.05 with a -9.53% year-to-date return. Market capitalization followed the market’s trend, down 1.10% to settle at GH¢54.59 billion.
•Sector performance was bearish. The GSE-FI declined by 1.70% to close at 1,874.05 with a -7.21% year-to-date return.
•No stock advanced this week.
Trading Activity Dropped
•A total of 24,261,385 shares valued at GH¢15,315,136 changed hands this week compared to 27,413,831 shares valued at GH¢19,716,661 last week.
•MTN Ghana dominated trades, accounting for 98.90% of total value traded.
•We expect a slowdown in trading activity next week due to the coronavirus outbreak.
Fan Milk Ghana Limited (FML)
FML’s 2020 Annual General Meting scheduled for May 26, 2020 at the Accra National Theatre has been postponed until further notice.
Investors looking to purchase/sell stocks and treasury bills can do so through SIC Brokerage Ltd.
Fixed Income Market Highlights
•Treasury securities were oversubscribed by 3.38% at last week’s auction. Government accepted GH¢484.01 million of 91 day bills and GH¢139.38 million of 182 day bills compared to GH¢821.48 million of 91 day bills, GH¢172.73 million of 182 day bills and GH¢140.64 million of 364 day bills in the previous week.
•The yield on the 91 day bill declined by 10 bps to 13.92% while the average yield of the 182 day bill declined from 14.03% to 14.01%.
•The target for the next auction is GH¢991 million in 91, 182 and 364 day bills.
•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 57% of trading activity while securities with short term maturities (less than 2 years) accounted for 38% of trades.