Weekly Capital Market Recap, week ending 09-03-21

DURATION OF INVESTMENT OF THE WEEK

Capital gains: Capital gains are an economic concept defined as the profit made on the sale of a financial asset whose value has increased during the holding period.

EQUITY MARKET HIGHLIGHTS: The Ghanaian stock market is advancing; returns 41.82% (YtD)
The Ghana stock market at the end of the week gained 13.71 points to close the week with a YTD return of 41.82% thanks to the price gain achieved by six (6) stocks. Cal Bank PLC (CAL) closed the week with the highest traded value representing 42.2% of the total traded value.
As a result, the benchmark GSE Composite (GSE-CI) closed the week at 2,753.55. However, the GSE Financial Stock Index (GSE-FSI) gained 15.68 points to close the week at 1,929.78, resulting in a cumulative annual return (YTD) of 8.25%.
The volume traded was 3.39 million shares, an increase of about 2.31% from the previous week. The total traded value was GH ¢ 3.39 million, which represents a reduction of approximately 32.77% from the value of the previous weeks. Market cap rose to close the week at GH ¢ 62.94 billion, representing growth of 15.75% for the year.

STUDY EQUITY: SCANCOM PLC. (MTNGH)
GH ¢ 1.24 share price
Price Change (YtD) 93.75%
Market capitalization. (GH ¢) 15,240.19
Dividend yield 2.42%
Earnings per GH share ¢ 0.1413
Avg. Daily trading volumes 1,842,380
Traded Value (YtD) GH ¢ 264 548 267.00

MTNGH has released its 2021 half-year financial results. The company reported 24.9% growth in total revenue to 3.6 billion GH ¢ as profit before tax improved to 1.3 billion of GH ¢, an increase of 35.5% over the previous year. The company also reported an increase in the number of active data subscribers from 1.8% to 11.4 million, but a decrease in the number of active mobile money users from 1.9% to 10.5 million.

PERFORMANCE OF THE GSE EQUITY MARKET

Indicator Current week Previous week Change
GSE-Composite index 2,753.55 2,739.84 13.71 pts
YTD (GSE-CI) 41.82% 41.11% 1.73%
GSE-Finance stock market index 1,929.78 1,914.10 15.68 pts
YTD (GSE-FSI) 8.25% 7.37% 11.94%
Market capitalization. (GH ¢ MN) 62,940.06 62,629.27 310.79
Volume traded 3,428,614 3,351,046 2.31%
Traded Value (GH ¢) 3,393,946.96 5,048,548.19 -32.77%

MOST NEEDED ACTIONS

TTY volume value (GH ¢)
CAL 1,991,399 1,433,852.28
MTN 695,287 862,155.88
ETI 388 247 27 177.29
GCB 89 921 484 674.19
UNIL 73 960 423 279.24

Cal Bank 42.2% of the traded value

WINNERS
Ticker Price close (GH ¢) Price opening (GH ¢) Variation YtD Variation
MLF 1.65 1.40 17.86% 52.78%
ETI 0.07 0.06 16.67% -12.50%
UNIL 5.90 5.64 4.61% -28.83%
EGL 2.06 1.99 3.52% 47.14%
RAIL 1.57 1.55 1.29% 4.67%
EGH 7.34 7.33 0.14% 1.94%

SUMMARY OF JULY 2021 SCHOLARSHIP ACTIVITIES
ACTIONS
Indicator Jan-Jul. 2021 Jan-Jul 2020% change
VARIATION GSE-CI YtD 39.95% -16.81%
VOLUME 349.5 million 332.6 million 5.08
VALUE (GH ¢) 341.22 M 235.38 M 44.97
GSE-CI 2,717.30 1,877.64 44.70
MKT. CAP. (GH ¢ M) 62 248.75 52 722.06 18.07
ADVANCERS ETI, GGBL, BOPP, TOTAL, SOGEGH, FML, MTNGH
REDUCED GCB, CPC, UNIL
Source: Ghana Stock Exchange

SUMMARY OF THE ACTIVITIES OF THE CJTF JULY 2021
FIXED INCOME MARKET IN GHANA
YEAR Jan-Jul 2021 Jan-Jul Change 2020
VOLUME 127,069,023,662 59,540,472,289,113.42%
VALUE (GH ¢) 132 201 660 679.01 60 738 827 520.89 117.66%
Source: Ghana Stock Exchange

HIGHLIGHTS OF THE FIXED INCOME MARKET
In last week’s auction, a total of GH 1,144.98 million was raised in 91-day notes, GH 64.66 million in 182-day notes and GH 312.88 million against GH 1,051. , GH ¢ 31 million in 91-day notes and GH ¢ 156.49 million in 182-day notes in the previous week’s auction.
The 91-day and 182-day bill yields edged down to 12.45% and 13.20% respectively.
The next auction target is GH ¢ 1,380 million in 91 and 182 day bills.

KEY ECONOMIC INDICATORS
Indicator Current Previous
Monetary policy rate July 2021 13.50% 13.50%
Real GDP growth Q1 2021 3.10% 3.30%
Inflation July 2021 9.00% 7.80%
Reference rate August 2021 13.51% 13.55%
Source: GSS, BOG, GBA

GOG cash position September 30 – 03, 2021 August 23 – 27, 2021 Change (%)
91-day Treasury bills 12.45% 12.46% -0.012%
182-day Treasury bill 13.20% 13.22% -0.029%
364-day Treasury bills 16.10% 16.11% -0.014%
2-year bond 17.25% 17.25% 0.00%
BOG offer (GH ¢ MN) 642.62 1.643.00
Dealer call for tenders (GH ¢ MN) 1,607.76 1,208.70
Amount raised (GH ¢ MN) 1,522.52 1,208.70
Source: Bank of Ghana

CURRENCY MARKET
Average Interbank Rates
Currency of the closing week of the previous week Variation of the current financial year
(GH ¢) (GH ¢)%
DOLLAR 5.8564 5.8502 -1.64%
BOOK 8.1214 8.0449 -3.04%
EURO 6.9607 6.8984 1.49%
YEN 0.0534 0.0532 4.68%
YUAN 0.9103 0.9037 -3.06%
F CFA 94.2379 95.0883 -1.47%
Source: Bank of Ghana

ANALYSTS
Godwin Kojo Odoom: Senior Research Analyst
Edna Awurama Fosua: Analyst
Nelson Cudjoe Kuagbedzi: Analyst

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