STOCK MARKET REVIEW

The stock market closed weaker for the week with gains in three counters not able to overturn losses in seven. The GSE Composite Index (GSE CI) moderated by 3.62 points (-0.17%) to close at 2,147.89 points, compared to 2,151.51 points at the previous week’s close. This translates into a year-to-date (YTD) loss of 16.50%. The GSE Financial Stocks Index also shed 25.90 points (-1.43%) to close the week at 1,783.18 points, representing YTD loss of 17.21%.

Market capitalization decreased by 0.07% for the week from GH¢55,703.14 million at the close of the preceding week to GH¢55,665.92 million. This represents YTD decline of 8.95%.   

A total of 4,511,759 shares, valued at GH?1,116,976.89 changed hands for the week, compared with total volume and value of 1,879,958 and GH¢3,689,326.68 recorded in the preceding week respectively. SIC dominated volume and value of shares traded for the week. SIC accounted for 85.59% (3,861,407 shares) of total volume of shares traded and 31.06% (GH¢346,950.56) of total value of shares traded.

The market closed on Friday with six laggards and three advancers for the week. Total Petroleum Ghana Ltd led the advancers with a 2.76% increase in price, closing at GH¢2.98 per share. SIC Insurance Company Ltd. meanwhile led the laggards with a 20% decrease in price. Its share price closed at GH¢0.08 per share from GH¢0.10 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 closed lower in value against the USD in the week under review. It traded at GH¢5.3633/$ on Friday, compared with GH¢5.3608/$ at week open, reflecting w/w and YTD depreciations of 0.05% and 10.13% respectively against the USD. This compares with YTD depreciation of 7.85% a year ago.

The Cedi also recorded a decline in value against the Euro on the week. It traded at GH¢5.9386/€, compared with GH¢5.9234/€ at week open, reflecting w/w and YTD depreciations of 0.26% and 7.17% respectively against the Euro. This compares with YTD depreciation of 2.54% a year ago.

The Cedi however strengthened against the GBP on the week. It traded at GH¢6.9078/£, compared with GH¢6.9224/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.21% and 10.67% respectively against the GBP. This compares with YTD depreciation of 2.78% a year ago.

The Cedi also strengthened against the CAD for the week. It opened at GH¢4.0507/C$ but closed at GH¢4.0494/C$, reflecting w/w appreciation and YTD depreciation of 0.03% and 12.68% respectively against the CAD. This compares with YTD depreciation of 3.02% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢867.56 million in the week under review across the 91-day and 182-day treasury papers. This compared with GH¢649.62 million raised in the previous week.

The 91–day Treasury bill added 1bp to 14.69% whilst the 182-day Treasury bill stayed flat at 15.14%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices tallied marginal declines on the week amid uncertainty surrounding the U.S. and China trade negotiations. Gold futures settled at US$1,463.60 per ounce on Friday, reflecting a week loss of 0.33% and YTD gain of 14.23%.

Oil prices added on marginal gains for the week following news that OPEC and its allies plans to extend the ongoing production cuts to June 2020. Brent futures traded at US$63.39 a barrel on Friday, reflecting w/w and YTD gains of 0.14% and 17.83% respectively.

Prices of Cocoa posted losses for the week. Cocoa futures settled at US$2,623.00 per tonne on Friday, reflecting losses of 5.17% for the week and 8.57% for the year.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Contingent Beneficiary: An individual who is entitled to receive the benefits of an insurance policy if the primary beneficiary dies.

Source:www.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).

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.