SIC Brokerage market review for March 5, 2020

Stock Market Highlights

•Losses in four counters in the banking, telecom and beverage sectors dragged the benchmark index down by 1.08% to 2,188.05 with a -3.06% year-to-date return while market capitalization declined by 0.44% to settle at GH¢56.28 billion.

•CAL Bank Limited (+2.22%) pushed the GSE Financial Index up by 0.04% to close at 1,965.36 with a -2.69% year-to-date return.

Trading Activity Declined

•A total of 9,896,381 shares valued at GH¢7,427,842 changed hands this week compared to 3,261,031 shares valued at GH¢1,816,989.

•MTN Ghana dominated trades for the sixth straight week, accounting for 79.10% of total value traded.

Outlook

•We expect a pick up in trading activity as companies release audited FY19 results.

GOIL Company Limited (GOIL)

GOIL has announced the appointment of Madam Philomena Sam as a Board Member of the company effective 17th November, 2019. Madam Sam replaces Mr. Patrick A.K Akorli who resigned from the Board on 31st May, 2019.

Fixed Income Market Highlights

•Primary Market

•Government raised 76.18% (GH¢609.40 million) of its weekly auction target of GH¢800 million last week. Investors bought GH¢388.93 million of 91-day bills, GH¢91.32 million of 182-day bills and GH¢129.15 million of 364-day bills compared to GH¢675.53 million of 91-day bills and GH¢68.10 million of 182 day bills in the previous week.

•The yield on the 91-day bill declined by 14.73% while the yield on the 182-day bill remained at 15.17%. The 364-day bill traded at a yield of 17.71%.

•The target for the next auction is GH¢1,037 million in 91, 182 and 364-day bills.

•Secondary Market

•Activity levels declined by 7.39% as 2,129 trades valued at GH¢1,310.98 million changed hands compared with 3,220 trades valued at GH¢1,415.53 million last week.

Activity was concentrated in the medium term (2 – 10 years), accounting for 55% of trades while securities with short term maturities (less than 2 years) accounting for 41% of trades.