Stock Market Highlights
•The benchmark index extended losses, down 0.53% this week to close at 2,161.65 with a -15.96% YTD return. The GSE-CI’s bearish performance was due to price declines in five counters in the banking, beverage and insurance sectors. Market capitalization declined by 0.21% to settle at GH¢55.64 billion.
•GCB Bank Limited (-0.41%), Societe Generale Ghana (-3.33%), Cal Bank Limited (-8.54%) and Enterprise Group Limited (-14.21%) dragged the GSE Financial Index down by 1.07% to close at 1,824.40 with a -15.29% YTD return.
Trading Activity Jumps
•A total of 724,094 shares valued at GH¢1,206,677 changed hands compared with 328,348 shares valued at GH¢304,664 last week.
•We expect activity to be concentrated in financial stocks next week ahead of third quarter earnings results.
PZ Cussons Ghana Limited (PZC)
•PZC has announced the Company’s intention to de-list from the GSE subject to Shareholder approval at the next AGM to be held on 11th November, 2019, and approval from the Securities and Exchange Commission and/or the Ghana Stock Exchange.
Fixed Income Market Highlights
•91, 182 and 364 day bills were 105.58% oversubscribed at this week’s auction. GoG raised GH¢667.27 million against a target of GH¢632 million. Investors bought GH¢528.39 million of 91 day bills, GH¢69.45 million of 182 day bills and GH¢69.43 million of 364 day bills.
•The yield on the 91 day bill remained at 14.69% this week while the yield on the 182 day bill declined by 2 bps to 15.12% from 15.14% last week.
•The target for next week Friday’s auction is GH¢762 million in 91 and 182 day bills.
•There was a total of 2,012 trades valued at GH¢1.10 billion this week. The CSD platform accounted for 92.77% of the value traded.
•Activity this week was concentrated in the short term (below 2 years), accounting for 57% of trades while securities in the medium term (2 - 10 years) accounted for 34% of trades. The growing appetite in short term securities may be attributable to the inflation outlook.
Weekly Auction for 18th October, 2019 (GH¢ mn)