STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines by 3 counters. The GSE Composite Index (GSE-CI) lost 4.74 points (-0.19%) to close the week at 2,515.18 points, reflecting a year-to-date (YTD) gain of 2.92%. The GSE Financial Stocks Index (GSE-FI) also lost 1.57 points (-0.09%) to close the week at 1,676.12 points, reflecting a YTD loss of 18.34%.

Market capitalization increased by 0.07% to close the week at GH¢65,921.89 million, from GH¢65,873.36 million at the close of the previous week. This reflects a YTD gain of 2.19%.

The week recorded a total of 691,853 shares valued at GH¢1,437,295.22 changing hands, compared with 6,453,209 shares, valued at GH¢7,818,133.86 in the preceding week.

MTNGH dominated volume of trades for the week whiles New Gold dominated value of trades for the week, accounting for 39.28% and 34.49% of shares traded respectively.

The market ended the week with 4 advancers and 3 decliners as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi strengthened marginally against the USD for the week. It traded at GH¢10.9709/$, compared with GH¢10.9755/$ at week open, reflecting w/w gain and YTD depreciation of 0.04% and 21.83% respectively. This compares with a loss of 15.95% a year ago.           

The Cedi however weakened against the GBP for the week. It traded at GH¢13.6857/£, compared with GH¢13.5361/£ at week open, reflecting w/w and YTD depreciations of 1.09% and 24.65% respectively. This compares with a depreciation of 9.11% a year ago.

The Cedi also weakened marginally against the Euro for the week. It traded at GH¢11.7681/€, compared with GH¢11.7537/€ at week open, reflecting w/w and YTD depreciations of 0.12% and 22.28% respectively. This compares with a depreciation of 10.86% a year ago.     

The Cedi again lost against the Canadian Dollar at week end. It opened at GH¢8.0517/C$ but closed at GH¢8.1623/C$, reflecting w/w and YTD depreciations of 1.36% and 22.54% respectively. This compares with a depreciation of 16.51% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,406.01 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢3,183.51 million raised in the previous week.

The 91-Day Bill settled at 21.16% p.a. from 20.80% p.a. last week whilst the 182-Day Bill settled at 23.94% p.a. from 23.62% p.a. last week.

The tables below highlight primary market activity at close of the week.

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices settled lower on Wednesday, pressured by a stronger U.S. dollar and weak data from top oil importer China that fed demand fears. Brent futures traded at US$76.13 a barrel, compared to US$76.95 at week open, reflecting w/w and YTD depreciations of 1.07% and 11.38% respectively.

Gold prices rose as a bill to raise the U.S. debt ceiling drew closer towards passing after being approved by the House of Representatives. Gold settled at US$1,969.60, from US$1,944.10 last week, reflecting w/w and YTD appreciations of 1.31% and 7.85% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,026.00 per tonne on Friday, from US$2,991.00 last week, reflecting w/w and YTD appreciations of 1.17% and 16.38% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Preemptive Rights: Preemptive rights give a shareholder the opportunity to buy additional shares in any future issue of a company's common stock before the shares are made available to the general public.

Source: https://www.investopedia.com/terms/p/preemptiveright.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

Name: Julian Sapara-Grant

Email:jsgrant@cidaninvestments.com

Tel:  +233 (0) 20 821 2079

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

House No. 261

Haatso, North Legon – Accra

Tel: +233 (0) 27 690 0011/ 55 989 9935

Fax : +233 (0)30 254 4351

Email : info@cidaninvestmens.com

Website : www.cidaninvestments.com

Disclaimer: The 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.