Stock Market Highlights
•The benchmark index trended lower this week, down 0.37% to close at a -14.42% year-to-date return while market capitalization declined by 0.15% to settle at GH¢56.22 billion.
•The GSE Financial Index retreated by 0.07% due to losses in GCB Bank Limited (-0.20%), Standard Chartered Bank (-1.49%), Cal Bank (-3.30%), Access Bank (-4.71%) and Societe Generale (-4.76%) to close at a -12.73% year-to-date return.
•Activity levels dipped as 16,365,160 shares valued at GH¢12,103,321 changed hands compared with 27,988,766 shares valued at GH¢20,153,568 last week. MTN Ghana dominated trading activity, accounting for 93.42% of total volume traded.
•We expect increased activity in financial stocks next week ahead of third quarter earnings results.
Annual General Meeting
•Guinness Ghana Breweries Limited’s (GGBL) 47th Annual General Meeting will be held on Wednesday, 13th November, 2019 at the Golden Bean Hotel, Kumasi. at 11.00 am.
•The MD of SIC Insurance has hinted that plans are in place to meet the proposed new Minimum Capital Requirement set by the National Insurance Commission https://bit.ly/3565Kiv
Fixed Income Market Highlights
•91, 182 and 364 day bills were undersubscribed at last Friday’s auction. GoG missed its target by 41.02%, raising GH¢569.15 million against a target of GH¢965 million. GoG also raised GH¢341 million at 19% in 2 Year Notes.
•The yield on the 91 and 182 day bill hardened by 1 bps to 14.69% and 15.15%, respectively while the 364 day bill remained flat at a yield of 17.91%.
•The target for this week’s auction on Friday is GH¢868 million in 91, 182 and 364 day bills.
•There was a total of 1,722 trades valued at GH¢877,365,454 this week. The CSD platform accounted for 86.87% of the value traded.
•Activity this week was focused in the medium term (2-10 years), accounting for 60.08% of trades while securities in the short term (below 2 years) accounted for 38.59% of trades this week. The growing appetite in short term securities may be attributable to the inflation outlook.
•We expect more trades in the short term next week as inflation fears linger.