Weekly Stock Market Update!!
The Ghanaian stock market delivered its worst performance in the past 15 months during this week. The GSE Composite Index finished 41.69 points lower than the previous week's 2,311.48 points to settle at 2,269.79 points.
Financial Stocks declined for the third straight week as the BoG and SEC continue to clean up the financial sector. The year-to-date loss on the Index further dipped 234 basis points to a loss of 8.13%.
Market capitalization dropped marginally by 0.45% to GH¢57.06 billion from GH¢57.48 billion the previous week. This came on the back of price falls in ACCESS, SCB and BOPP by close of week.
Liquidity was significantly lower compared to a week ago. This week saw a total of 1.85 million shares of twenty one companies trading on the bourse. This represented a 95% decline from the previous week. The GSE Alternative Market was quite active as 1,000 shares of SAMBA and IIL apiece exchanged hands at GH¢0.55 per share and GH¢0.05 respectively.
A block trade of a million shares of ALW occurred on the second trading day. This resulted in ALW to emerge as the most liquid stock for the week by contributing to 54% of total volume. ALW joined the gainers for the week with a gain of 11.11% to close at GH¢0.10 per share. MTNGH and ETI followed by trading 15% and 12% respectively of total volume by close of week.
TBL led the pack of two gainers with a gain of 63.64% to close at GH¢0.36 while GCB lost 8.69% to close at GH¢4.52: thus leading the deck of nine laggards.
The Week Ahead!
The stock market is expected to remain bearish in the coming week as confidence in the financial sector continues to be low. GCB and FML may decline due to excess supply over demand.
FIXED INCOME MARKET
Total trades on both the Bloomberg platform and CSD platform increased. The total volume of trades on both platforms however reduced by 9.25% from the previous week, although the number of trades was 323 more. The market appetite was skewed towards GOG instruments as GOG instruments formed 44% of fixed income instruments traded over the week. Government Treasury Note was the next highest with 45% of the size.
The Government of Ghana issued a 20-year Senior Unsecured Bond. The settlement date is August 26, 2019. Investors may contact SIC Brokerage to purchase T-Bill/Bonds.