STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines  by 2 counters. The GSE Composite Index (GSE CI) lost 94.55 points (-3.84%) to close at 2,365.89 points, reflecting a year-to-date (YTD) loss of 15.18%. The GSE Financial Stocks Index (GSE FI) was flat for the week closing at 2,068.16 points (0.00%), reflecting YTD loss of 3.89%.

Market capitalization declined by 1.29% to close the week at GH¢63,646.60 million, from GH¢64,478.26 million at the close of the previous week. This reflects a YTD decrease of 1.32%.

Trading activity recorded a total of 550,652  shares valued at GH¢20,555,072.32 changing hands, compared with 3,546,068 shares, valued at GH¢59,618,839.97  in the preceding week.

MTN  dominated volume of trades whiles New Gold dominated value of trades for the week, accounting for 65.10% and 96.99% of shares traded respectively.

The market ended the week with 2 advancers  and 2 decliners as indicated on the table below. `

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi lost more grounds against the USD for the week. It traded at GH¢12.5307/$, compared with GH¢10.7169/$ at week open, reflecting w/w and YTD depreciations of 14.47% and 52.07% respectively. This compares with YTD depreciation of 2.29% a year ago.            

The Cedi again weakened against the GBP for the week. It traded at GH¢14.0914/£, compared with GH¢11.9987/£ at week open, reflecting w/w and YTD depreciations of 14.85% and 42.33% respectively. This compares with YTD depreciation of 3.05% a year ago.

The Cedi continued its downward trend against the Euro for the week. It traded at GH¢12.3328/€, compared with GH¢10.4318/€ at week open, reflecting w/w and YTD depreciations of 15.41% and 44.63% respectively. This compares with YTD appreciation of 2.84% a year ago.        

The Cedi also weakened against the Canadian Dollar for the week. It opened at GH¢7.7313/C$ but closed at GH¢9.1500/C$, reflecting w/w  and YTD depreciations of 15.50% and 48.18% respectively. This compares with YTD depreciation of 5.07% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,301.17 million for the week across the 91-Day and 182-Day  Treasury Bills. This compared with GH¢974.51  million raised in the previous week.

The 91-Day Bill settled at 32.16% p.a from 31.39% p.a. last week whilst the 182-Day Bill settled at  33.08% p.a from 32.24% p.a. last week. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Oil prices settled up on Friday as hopes of stronger Chinese demand and a weakening U.S. dollar outweighed concern about a global economic downturn and the impact of interest rate rises on fuel use. Brent futures traded at US$93.50 a barrel on Friday, compared to US$91.63 at week open. This reflects w/w and YTD gains of 2.04% and 20.21% respectively.

Gold prices gained for the week as the dollar weakened amid reports of a potential debate amongst the U.S. Federal Reserve officials about the pace of rate hikes. Gold settled at US$1,656.30, from US$1,648.90 last week, reflecting w/w gain and YTD  loss of 0.45% and 9.42% respectively.

The price of Cocoa saw a decline in growth for the week. The commodity traded at US$2,306.00 per tonne on Friday, from US$2,377.00 last week, reflecting  w/w  and YTD depreciations of 2.99% and 8.49% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Unfunded Debt:  This is a short term debt or financial obligation with up to one year maturity.

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.