CIDAN market research for March 27, 2020

The stock market closed weaker in the review week as the laggards outpaced the gainers. The GSE Composite Index (GSE CI) shed 18.50 points (-0.85%) to close at 2,160.52 points, compared to 2,179.02 points at the close of the previous week.

This translates into a year-to-date (YTD) loss of 4.28%. The GSE Financial Stocks Index also shed 26.57 points to close the week at 1,925.60 points, increasing its YTD loss to 4.66%.

Market capitalization decreased by 0.34% for the week from GH¢56,186.91 million at the close of the previous week to GH¢55,995.00 million at the close of the week. This represents YTD decline of 1.40%.

There was less activity on the market compared with that of the preceding week. A total of 218,630 shares, valued at GH¢288,234.18 changed hands for the week, compared with 1,427,692 shares valued at GH¢767,271.37 recorded in the preceding week.

ETI and UNIL dominated volume and value of shares traded for the week respectively. ETI accounted for 30.31% (66,262 shares) of total volume of shares traded and UNIL accounted for 14.28% (GH¢41,166.00) of total value of shares traded for the week.

The market closed on Friday with seven laggards and no advancer for the week. Ghana Oil Company Limited led the laggards. Its share price closed at GH¢1.62 from GH¢1.70 (-4.71%) at week open. Thirty-three (33) counters remained flat at the closing bell on Friday.

The graphs and table below highlight activity on the market during the week.

CURRENCY MARKET

The Cedi weakened against the USD for the fifth straight week. It traded at GH¢5.4377/$ on Friday, compared with GH¢5.3603/$ at week open, reflecting w/w depreciation and YTD appreciation of 1.42% and 1.77% respectively against the USD. This compares with YTD depreciation of 5.18% a year ago.

The Cedi also weakened against the Euro on the week. It traded at GH¢5.9988/€, compared with GH¢5.7528/€ at week open, reflecting w/w depreciation and YTD appreciation of 4.10% and 3.54% respectively against the Euro. This compares with YTD depreciation of 3.42% a year ago.

The Cedi likewise weakened against the GBP on the week. It traded at GH¢6.7042/£, compared with GH¢6.3249/£ at week open, reflecting w/w depreciation and YTD appreciation of 5.66% and 9.13% respectively against the GBP. This compares with YTD depreciation of 6.73% a year ago.

The Cedi again strengthened against the CAD for the week. It opened at GH¢3.7360/C$ but closed at GH¢3.8612/C$, reflecting w/w depreciation and YTD appreciation of 3.24% and 10.54% respectively against the CAD. This compares with YTD depreciation of 7.07% a year ago.

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢743.38 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,141.36 million raised in the previous week.

The 91–Day, 182-Day and 364-Day Bills shed 11bps, 3bps and 15bps to settle at 14.64%, 15.15% and 17.65% respectively.

COMMODITY MARKET

Gold futures dipped on Friday but notched its best weekly gain in almost 12 years, despite a cash out of part of its gains by some investors. Gold futures settled at US$1,625.00 per ounce on Friday, reflecting w/w and YTD gains of 9.46% and 6.84% respectively.

Oil prices weakened for the fifth straight week amid fear of further slowdown in demand resulting from increasing global economic lockdowns and a Saudi-Russia price war. Brent futures traded at US$24.93 a barrel on Friday, reflecting w/w and YTD losses of 7.60% and 62.23% respectively.

Prices of Cocoa strengthened for the week. Cocoa futures settled at US$2,257.00 per tonne on Friday, reflecting w/w gain and YTD loss of 1.21% and 11.14% respectively.