CIDAN Market Research for March 20, 2020

The stock market closed weaker in the review week as the laggards outpaced the gainers. The GSE Composite Index (GSE CI) shed 6.80 points (-0.31%) to close at 2,179.02 points, compared to 2,185.81 points at the close of the previous week.

This translates into a year-to-date (YTD) loss of 3.46%. The GSE Financial Stocks Index also shed 9.07 points to close the week at 1,952.16 points, increasing its YTD loss to 3.34%.

Market capitalization decreased by 0.13% for the week from GH¢56,258.77 million at the close of the previous week to GH¢56,186.91 million at the close of the week. This represents YTD decline of 1.06%.

There was less activity on the market compared with that of the preceding week. A total of 1,427,692 shares, valued at GH¢767,271.37 changed hands for the week, compared with 2,120,779 shares valued at GH¢1,639,780.11 recorded in the preceding week. MTNGH dominated both volume and value of shares traded for the week. MTNGH accounted for 60.08% (857,750 shares) of total volume of shares and 76.03% (GH¢583,323.00) of total value of shares traded for the week.

The market closed on Friday with three gainers and seven laggards for the week. Camelot Ghana Ltd. led the gainers, closing at GH¢0.11 from GH¢0.10 (+10.00%) at week open. Intravenous Infusions Limited. on the other hand led the laggards. Its share price closed at GH¢0.03 from GH¢0.04 (-25.00%) at week open. Thirty (30) counters remained flat at the closing bell on Friday.

Currency Market

The Cedi weakened against the USD for the fourth straight week. It traded at GH¢5.3603/$ on Friday, compared with GH¢5.3278/$ at week open, reflecting w/w depreciation and YTD appreciation of 0.61% and 3.23% respectively against the USD. This compares with YTD depreciation of 5.12% a year ago.

The Cedi meanwhile strengthened against the Euro on the week. It traded at GH¢5.7528/€, compared with GH¢5.9212/€ at week open, reflecting w/w and YTD appreciations of 2.93% and 7.97% respectively against the Euro. This compares with YTD depreciation of 3.87% a year ago.

The Cedi likewise strengthened against the GBP on the week. It traded at GH¢6.3249/£, compared with GH¢6.6694/£ at week open, reflecting w/w and YTD appreciations of 5.45% and 15.68% respectively against the GBP. This compares with YTD depreciation of 8.11% a year ago.

The Cedi again strengthened against the CAD for the week. It opened at GH¢3.8322/C$ but closed at GH¢3.7360/C$, reflecting w/w and YTD appreciations of 2.57% and 14.24% respectively against the CAD. This compares with YTD depreciation of 6.69% a year ago.

Government Securities Market

Government raised a total of GH¢1,141.36 million in the week under review across the 91-Day and 182-Day Treasury Bills and the 5-Year Bond. This compared with GH¢889.68 million raised in the previous week.

The 91–Day Bill shed 1bp to settle at 14.75% whilst the 182-Day Bill remained unchanged at 15.18%. The 5-Year Bond meanwhile added 220bps to settle at 21.70%.

Commodity Market

Gold futures settled higher on Friday but tallied a second straight weekly loss as investors continued to liquidate all assets for dollar holdings in the wake of the CoVid-19 pandemic. Gold futures settled at US$1,501.15 per ounce on Friday, reflecting w/w and YTD losses of 1.03% and 1.30% respectively.

Oil prices plunged for the fourth straight week amid weakened demand resulting from the CoVid-19 pandemic and a price war between Saudi Arabia and Russia. Brent futures traded at US$26.98 a barrel on Friday, reflecting w/w and YTD losses of 20.30% and 59.12% respectively.

Prices of Cocoa weakened for the second straight week. Cocoa futures settled at US$2,230.00 per tonne on Friday, reflecting w/w and YTD losses of 10.15% and 12.20% respectively.