SIC Brokerage Market Recap WE 29-05-20

1st Jun 2020 | Source: sicbrokerage.com

Stock Market Highlights

•The benchmark index declined by 3.53% this week due to losses in five counters in the beverage, petroleum marketing, telecom and agro processing sectors to close at 1,941.03 with a -14.01% year-to-date return. Market capitalization followed the market’s trend, down 1.36% to settle at GH¢53.54 billion.

•Ecobank Ghana (+0.54%) advanced, pushing the GSE Financial Index however up by 0.12% to close at 1,843.10 with a -8.74% year-to-date return.

Trading Activity Jumped

•A total of 35,404,330 shares valued at GH¢21,112,451 changed hands this week compared to 1,203,606 shares valued at GH¢3,238,207 last week.

•MTN Ghana dominated trades, accounting for 92.89% of total value traded.

Outlook

•We expect a slowdown in trading activity next week due to the coronavirus outbreak.

Ghana Stock Exchange (GSE)

The Ghana Stock Exchange with the approval of the Securities And Exchange Commission, has amended its rules on price movement. The amended rules are stated in rule 30 of the newly approved GSE trading rules.

Investors looking to purchase/sell stocks and treasury bills can do so through SIC Brokerage Ltd.

Fixed Income Market Highlights

•Primary Market

•At today’s auction, government raised 51.27% of its GH¢1,123 million target. Government raised GH¢465.36 million in 91 day bills, GH¢80.14 million in 182 day bills and GH¢30.27 million in 364 day bills, compared with GH¢854.19 million in 91 day bills and GH¢217.03 million in 182 day bills last week.

•The yield of the 91 day bill and 364 day bill declined by 4 bps and 70 bps to 14.02% and 16.01%, respectively while the average yield of the 182 day bill increase from 14.05% to 14.07%.

•The target for the next auction is GH¢875 million in 91 and 182 day bills.

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•Secondary Market

•Trading activity declined by 40.95% as 2,194 trades valued at GH¢1,057.89 million changed hands last week compared with 1,422 trades valued at GH¢1,791.39 million last week. Securities maturing in the medium term (2 – 10 years) dominated trading, accounting for 66% of trading activity while securities with short term maturities (less than 2 years) accounted for 28% of trades.