STOCK MARKET REVIEW

The stock market closed weaker in the review week. The GSE Composite Index (GSE CI) moderated by 15.49 points (-0.70%) to close at 2,196.72 points, compared to 2,212.21 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 2.68%. The GSE Financial Stocks Index also gained 15.33 points to close the week at 2,017.85 points, representing YTD loss of 0.09%.

Market capitalization also decreased by 0.28% for the week from GH¢56,714.42 million at the close of the previous week to GH¢56,553.66 million at the close of the week. This represents YTD decline of 0.42%.   

There was less activity on the market compared with that of the preceding week. A sum of   2,481,186 shares, valued at GH¢2,078,981.64 changed hands for the week, compared with total volume and value of 3,625,470 and GH¢2,703,767.00 recorded in the preceding week respectively. MTN Ghana dominated both volume and value of shares traded for the week respectively. It accounted for 77.55% (1,924,043 shares) of total volume of shares and 61.99% (GH¢1,288,937.38) of total value of shares traded for the week.

The market closed on Friday with 6 laggards for the week and a lone gainer. SIC Insurance Company Ltd. led the laggards with a 11.11% decline in price. Its share price closed at GH¢0.08 per share from GH¢0.09 per share at week open. Standard Chartered Bank Gh. Ltd was the only gainer with 5.56% increase price. Thirty-three (33) 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 strengthened against the USD for the fourth straight week. It traded at GH¢5.3608/$ on Friday, compared with GH¢5.4672/$ at week open, reflecting w/w and YTD appreciations of 1.98% and 3.23% respectively against the USD. This compares with YTD depreciation of 3.60% a year ago.

The Cedi likewise strengthened against the Euro on the week. It traded at GH¢5.8822/€, compared with GH¢6.0476/€ at week open, reflecting w/w and YTD appreciations of 2.81% and 5.60% respectively against the Euro. This compares with YTD depreciation of 2.78% a year ago.

The Cedi again strengthened against the GBP on the week. It traded at GH¢6.9434/£, compared with GH¢7.1924/£ at week open, reflecting w/w and YTD appreciations of 3.59% and 5.23% respectively against the GBP. This compares with YTD depreciation of 4.68% a year ago.

The Cedi further strengthened against the CAD for the week. It opened at GH¢4.1327/C$ but closed at GH¢4.0255/C$, reflecting w/w and YTD appreciations of 2.66% and 6.03% respectively against the CAD. This compares with YTD depreciation of 6.14% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢861.12 million in the week under review across the 91-day and 182-day treasury bills. This compared with GH¢960.12 million raised in the previous week.

The 91–day and 182-day bills added 1bp and 4bps to close at 14.70% and 15.18% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices weakened on the week on the back of profit-taking by some investors. Gold futures settled at US$1,568.60 per ounce on Friday, reflecting w/w loss and YTD gain of 0.90% and 3.13% respectively.

Oil prices tallied losses for the week on worries over the Coronavirus and Russia’s indecision in respect of a call by OPEC to cut production further by 600,000 barrels per day. Brent futures traded at US$54.47 a barrel on Friday, reflecting w/w and YTD losses of 6.34% and 17.47% respectively.

Prices of Cocoa meanwhile rallied for thesecond straight week. Cocoa futures settled at US$2,900.00 per tonne on Friday, reflecting w/w and YTD gains of 4.43% and 14.17% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Loss Leader: A loss leader is a product or service that is offered at a price that is not profitable, but it is sold to attract new customers or to sell additional products and services to those customers. Loss leading is a common practice when a business first enters a market.

Sourcewww.investopedia.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.