GSE closes bearish as benchmark index headed southwards
The GSE Composite Index thus recorded a weekly decline of 353 basis points to settle at 1,941.03 points, corresponding to a year-to-date loss of 14.01 per cent.
The GSE Financial Stocks Index on the other hand, surged by 12 basis points in the week’s trading despite ill-sentiment surrounding the dividend suspension which affected the index in other previous week’s trading. The index stood at 1,843.10 points, corresponding to a year-to-date loss of 8.74 per cent.
Market outturns improved significantly with a total of 35.40 million shares valued at GH¢21.11 million exchanging hands.
This represents over 100 percent increment compared to the previous week’s trade of 1.20 million worth GH¢3.24 million.
MTN Ghana Ltd led the activity chart with 98.75 per cent share of the overall traded volume. Market capitalization, however, dropped by 1.36 per cent to GH¢53,542.60 million at end of the week’s trade.
Stock price movements
At the pairing of week’s opening and closing prices, seven equities altered their share prices. Ecobank Ghana Ltd emerged as the sole price advancer; it upped by four pesewas to trade at GH¢7.49 per share.
On the flip side, NewGold led the pack of six losers; it dipped by GH¢3.20 to close at GH¢90.90 per share. Benso Oil Palm Plantation and MTN Ghana Ltd also eased by 15 pesewas and six pesewas to trade at GH¢2.50 and 55 pesewas per share, respectively.
Fan Milk Ltd and Ghana Oil Company Ltd slipped by a pesewa each to settle at GH¢3.38 and GH¢1.58 per share, respectively. Total Petroleum Ghana Ltd also inched down by a pesewa to trade at GH¢2.49 per share.
Interest rates on Government of Ghana treasury securities were adjusted at the week’s auction.
The yield on the 91-Day T-Bill moderated by four basis points to settle at 14.02 per cent. That on the 182-Day and 364-Day T-Bills however inched up by two basis points and 18 basis points as they settled at 14.07 per cent and 16.88 per cent, respectively.
The 3-year bond, which was issued to both domestic and foreign investors to finance government project and maturing bills, had its yields trimmed by 50 basis points to 18.85 per cent. Yields on other Government of Ghana’s Treasury Notes and Bonds were, however, unchanged.
A total of GH¢575.77 million bids were tendered by investors with all bids accepted by the Government. This fell below the GH¢1,124.00 million target set for the week’s trading. Government also raised a total of GH¢751.33 million bids from the issuance of the 3-Yr Bond bringing total bids accepted to GH¢1,327.10 million.
The 3-Yr Bond dominated Government’s purchase as it constituted 56.61 per cent of the overall bids raised at the week’s trading. At the upcoming auction, the Government anticipates raising a total of GH¢875.00 million from the issuance of the 91-Day and 182-Day T-Bills.
On the interbank currency market, the Ghana cedi depreciated against all the three major trading currencies.
The US dollar posted a weekly gain of 0.09 per cent to sell at GH¢5.62 per share. The year-to-date depreciation of the cedi thus increased to 1.54 per cent.
The British Pound eased to a two-month low on account of post Brexit worries and speculations of a negative interest rate policy by the Bank of England. In spite of this, the Pound upped its selling price to GH¢6.92 as the cedi posted a week-on-week depreciation of 1.13 per cent.
The year-to-date appreciation of cedi thus narrowed to 5.74 per cent.
The Euro appreciated on the international currency market on improved investors’ confidence on a recovery of the bloc. The Euro traded at GH¢6.24 on the interbank currency market, representing a week-on-week gain of 2.02 per cent. The year-to-date depreciation of the cedi thus increased to 0.48 per cent.
Brent crude oil posted a marginal weekly gain despite a rekindled trade dispute between the US and China which affected market activities. Brent crude oil added 10 cents to trade at US$35.23 per barrel.
Gold closed the trading week lower despite a strong rebound last Thursday and Friday associated with the heightened trade tension and downbeat unemployment data from the US. Gold shed US$9.40 to trade at $1,726.10 per ounce.
Cocoa surged on the international commodities market as the unfavourable climatic conditions inhibiting production in top grower – Ivory Coast contributed to the upward review of its pricing. Cocoa gained US$36.50 to trade at US$2,430.50 per metric tonne.
Coffee dropped to its lowest in three-and-half months on account of bumper harvest in Brazil and the weakening of the Brazilian real against major international currencies. Coffee traded below the US$1.00 benchmark after losing four pesewas to sell at 99.92 cents per pound.