Dividend payments excite investors
The Ghana Stock Exchange sustained the previous week’s recovery, as market activities were buoyed on account of announcements and payments of dividends by some listed companies.
The boost in market activities saw four trading sessions closing positive. As a result, the benchmark-GSE Composite Index rose by 0.85 per cent to 1,915.90 points, corresponding to a year-to-date return of 13.43 per cent.
The GSE Financial Stock Index also advanced by 0.24 per cent to 1,797.13 points, representing a year-to-date return of 16.29 per cent.
The week’s total trade of 8.69 million shares was over 400 per cent higher than the one recorded in the previous week.
The value of the week’s trade also rose by 892.49 per cent to GH¢16.58 million.
At the close of the week, Guinness Ghana dominated market activities. It accounted for 60.33 per cent of the total traded volume. Market capitalisation also rose by 0.17 per cent to GH¢58.95 billion.
Price movements
The Exchange witnessed price movements in 11 equities. There were nine advancers and two laggards.
Following the dividend payment in GOIL, its share price rose by 16 pesewas to close the week at GH¢1.57 per share.
Fan Milk Ltd gained 14 pesewas to trade at GH¢11.52 per share.
Standard Chartered Bank added 13 pesewas to close at GH¢15.83 per share.
Unilever Ghana increased by five pesewas to end the week at GH¢9.05 per share.
BOPP, CAL Bank, Enterprise Group Ltd, GCB Bank Ltd and Societe Generale also witnessed price advancements to close the list of advancers for the week.
Forex market
The Ghana cedi was on the defensive against all the three major trading currencies in the trading week, as the recent supply boost began to lose strength amidst marginal upsurge in corporate demand for forex.
The local currency lost 0.93 per cent to trade to GH¢4.25 per a dollar. It settled with a year-to-date depreciation of 1.15 per cent.
The British Pound was strong against the cedi, buoyed by the international currency on the back of stronger retail sales and a forecasted jump in inflation data.
It depreciated by two per cent to trade at GH¢5.53 per the pound and also closed with a year-to-date depreciation of 6.50 per cent.
The Euro appreciated by 3.39 per cent against the local currency, following a wave of improved economic sentiment in Eurozone’s largest economy and upbeat first quarter growth.
The cedi traded at GH¢4.76 to the euro, settling at a-year-to-date depreciation of 7.19 per cent. 
Short-dated securities
The yield on the 91-Day T-Bill continuous to decline. It lost 26 basis points (bps) last Friday to settle at 13.21 per cent.
The 182-Day T-Bill also softened by bps to 15.02 per cent. This downward trend is expected to resurface at the next auction.
At the close of the auction, GH¢559.69 million bids were purchased by the government.
As a result of this outturn, the week’s target of GH¢913.00 million was unachieved. The government, however, expects to raise GH¢1.17 billion from the 91-Day and the 182-Day T-Bills at the next auction on the May 26.
The term structure of the yield curve continues to show irregularities, with the incorporation of the five-year bond. It, however, exhibits a regular curve without the 5-year bond.
Following the consistent moderation in interest rates, we expect the market to correct the irregularities in the yield curve. This will be prudent when rates on the two-year fixed note and the three-year bond decline further than the current rate of the five-year bond.
Commodities
In spite of opposing sentiments, the price of oil rose by US$2.79 at the end of the week.
This was on the back of concerns surrounding supply glut in the US and hopes for extension of output cut deal by major producers.
Brent crude oil thus closed the week at US$53.63 per barrel, below the international benchmark of US$53.1 per barrel
The price of gold edged down last Friday, as upbeat economic data from US factory activities and employment data buoyed the value of the dollar and that caused the metal to begin losing its appeal to investors.
The decline was not to a level that could totally offset gains made from the political turmoil from the US and Brazil.
Gold thus recorded a weekly appreciation of 1.98 per cent to trade at US$1,252.00 per ounce.
The price of Cocoa soared in the trading week, as Cote d’Ivoire’s military agitations halted most businesses in the country.
The closing of cocoa hub in Ivory Coast resulted in insufficient supply of the commodity on the international market, pushing the price of the soft crop higher.
Cocoa thus gained US$29 to trade at US$2,025.5 per metric ton.
Coffee tumbled this week on account of the Brazilian currency coming under selling pressure, following the bribery allegation levelled against the government. The soft crop lost two cents to trade at US$1.32 per pound. — IGS Financial Services/GB