Stock Market Highlights
•Losses in six banking, consumer goods, insurance and telecom counters dragged the benchmark index down by 0.70% to close at 2,196.72 with a -2.68% year-to-date return. Market capitalization followed the market’s trend, down 0.28% to settle at GH¢56.55 billion.
•Standard Chartered Bank (+5.56%) gained GH¢1.00, pushing the GSE-FI up by 0.77% to 2,017.85 with a -0.09% year-to-date return.
Activity Levels Declined
•A total of 2,481,186 shares valued at GH¢2,078,982 changed hands this week compared with 3,625,470 shares valued at GH¢2,703,767.
•MTN Ghana dominated trades for the second straight week, accounted for 61.99% of total value traded.
Outlook
•We expect a pick up in trading activity as companies release FY19 results.
Unilever Ghana Limited (UNIL)
UNIL reported a 46.25% drop in revenue from GH¢632.15m in FY18 to GH¢339.75m in FY19. This was due to challenges associated with trading conditions and prioritization of inventory reduction.
Investors looking to purchase/sell stocks and treasury bills can do so through SIC Brokerage Ltd (0302767051).
Fixed Income Market Highlights
•Primary Market
•Government raised GH¢960.12 million, 58.22% of its weekly auction target last week. Investors bought GH¢465.74 million of 91 day bills, GH¢111.66 million of 182 day bills and GH¢382.72 million of 364 day bills compared to GH¢708.87 million of 91 day bills, GH¢195.47 million of 182 day bills and GH¢21.14 million of 364 day bills last week.
•The yield on the 91 day bill remained at 14.69% while the yield on the 182 day bill and 364 day bill weakened by 1bps and 7bps respectively, to 15.14% and 17.81%.
•The target for the next auction is GH¢711 million in 91 and 182 day bills.
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•Secondary Market
Activity increased marginally as 2,704 trades valued at GH¢1,826.21 million changed hands compared to 2,979 trades valued at GH¢1,546.35 million last week. Activity was concentrated in the medium term (2 – 10 years) for the fourth straight week, accounting for 79% of trades while securities in the short term (below 2 years) accounted for 20% of trades.
* The 20-year bond is a shelf offering and will be re-opened based on investors request
Weekly Capital Market Recap: February 07, 2020
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