STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the second consecutive week on the back of price declines  by 7 counters. The GSE Composite Index (GSE CI) lost 8.49 points (-0.34%) to close at  2,499.90  points, reflecting year-to-date (YTD) loss of 10.38%. The GSE Financial Stocks Index (GSE FI) also lost 5.52 points (-0.27%) to close at 2,073.33 points, reflecting YTD loss of 3.65%.

Market capitalization declined  by 0.13% to close the week at GH¢64,401.07 million, from GH¢64,482.54 million at the close of the previous week. This reflects YTD decrease of 0.15%.

Trading activity recorded a total of 11,666,517 shares valued at GH¢12,084,263.04 changing hands, compared with 3,030,863 shares, valued at GH¢7,592,049.55 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 75.25% and 66.11% of shares traded respectively.

The market ended the week with no advancer  and 2 decliners as indicated on the table below. `

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the week. It traded at GH¢8.2897/$, compared with GH¢8.2565/$ at week open, reflecting w/w and YTD depreciations of 0.40% and 27.55% respectively. This compares with YTD depreciation of 1.64% a year ago.        

The Cedi however strengthened against the GBP for the week. It traded at GH¢9.4586/£, compared with GH¢9.5759/£ at week open, reflecting w/w gain and YTD depreciation of 1.24% and 14.08% respectively. This compares with YTD depreciation of 2.36% a year ago.

The Cedi also strengthened against the Euro for the week. It traded at GH¢8.2966/€, compared with GH¢8.3020/€ at week open, reflecting w/w gain and YTD depreciation of 0.06% and 17.70% respectively. This compares with YTD appreciation of 2.67% a year ago.            

The Cedi again strengthened against the Canadian Dollar for the week. It opened at GH¢6.3360/C$ but closed at GH¢6.2441/C$, reflecting w/w gain and YTD depreciation of 1.47% and 24.06% respectively. This compares with YTD depreciation of 1.52% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,929.78 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,226.45 million raised in the previous week.

The 91-Day Bill settled at 29.91% p.a from 29.48% p.a. last week whilst the 182-Day Bill settled at  31.14% p.a from 30.05% p.a. last week. The 364-Day Bill settled at 30.47% from 30.03% at last issue. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices edged lower on the week pressured by expectations of weaker global demand and by US dollar strength ahead of possible large increases to interest rates, though supply worries limited the decline. Brent futures traded at US$91.10 a barrel on Friday, compared with US$92.84 at week open. This reflects w/w loss and YTD gain of 1.87% and 17.13% respectively.

Gold prices dropped on the back of expectations of more sharp interest rate hikes  by the Federal Reserve, coupled with a stronger dollar. Gold settled at US$1,668.15, from US$1,728.60 last week, reflecting w/w and YTD  losses of 3.50% and 8.77% respectively.

Prices of Cocoa also declined for the week. The commodity traded at US$2,354.50 per tonne on Friday, from US$2,360.00 last week, reflecting  w/w and YTD loss of 0,23% and 6.57% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Money Manaer:  A money manager is a person or financial firm that manages the securities portfolio of an individual or institutional investor. Typically, a money manager employs people with various expertise ranging from research and selection of investment options to monitoring the assets and deciding when to sell them.

In return for a fee, the money manager has the fiduciary duty to choose and manage investments prudently for clients, including developing an appropriate investment strategy and buying and selling securities to meet those goals. A money manager may also be known as a "portfolio manager," "asset manager," or "investment manager.".

Source:   https://www.investopedia.com/terms/m/moneymanager.asp   

ABOUT CIDAN

CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).

RESEARCH TEAM

Name: Ernest Tannor

Email:etannor@cidaninvestments.com

Tel:+233 (0) 20 881 8957

Name: Moses Nana Osei-Yeboah

Email:moyeboah@cidaninvestments.com

Tel:+233 (0) 24 499 0069

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

Haatso, North Legon – Accra

Tel: +233 (0) 26171 7001/ 26 300 3917

Fax: +233 (0)30 254 4351

Email: info@cidaninvestmens.com

Website: www.cidaninvestments.com

DisclaimerThe contents of this report have been prepared to provide you with general information only. Information provided on and available from this report does not constitute any investment recommendation.

The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed.