STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 2 counters. The GSE Composite Index (GSE-CI) gained 8.45 points (+0.30%) to close the week at 2,870.72 points, reflecting a year-to-date (YTD) gain of 17.46%. The GSE Financial Stocks Index (GSE-FI) gained 15.94 points (+0.94%) to close the week at 1,703.43 points, reflecting a YTD loss of 17.01%.

Market capitalization increased by 0.14% to close the week at GH¢70,929.41 million, from GH¢70,828.47 million at the close of the previous week. This reflects a YTD gain of 9.96%.

The week recorded a total of 431,556 shares valued at GH¢348,516.13 changing hands, compared with 24,420,319 shares, valued at GH¢1,453,951.29 in the preceding week.

SIC dominated the volume of trades for the week while ABG dominated the value of trades for the week, accounting for 63.79% and 32.99% of volume and value 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 depreciated marginally against the USD for the week. It traded at GH¢11.0032/$, compared with GH¢11.0028/$ at week open, reflecting w/w and YTD depreciations of 0.004% and 22.06% respectively. This compares with a depreciation of 19.65% a year ago.      

The Cedi however inched up against the GBP for the week. It traded at GH¢14.1353/£, compared with GH¢14.4341/£ at week open, reflecting w/w gain and YTD depreciation of 2.11% and 27.05% respectively. This compares with a depreciation of 9.61% a year ago.

The Cedi also strengthened against the Euro for the week. It traded at GH¢12.2315/€, compared with GH¢12.3659/€ at week open, reflecting w/w appreciation and YTD depreciation of 1.10% and 25.23% respectively. This compares with a depreciation of 10.64% a year ago.      

The Cedi again strengthened against the Canadian Dollar at week end. It opened at GH¢8.3480/C$ but closed at GH¢8.3193/C$, reflecting w/w gain and YTD depreciation of 0.34% and 24.01% respectively. This compares with a depreciation of 18.42% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,699.05 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,126.22 million raised in the previous week.

The 91-Day Bill settled at 24.92% p.a. from 24.69% p.a. last week whilst the 182-Day Bill settled at 26.81% p.a. from 26.41% p.a. last week. The 364-Day Bill settled at 30.05% p.a. from 29.65% p.a. previously.

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

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices were steady last week, hovering near three-month highs on the back of signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy. Brent futures traded at US$81.07 a barrel, compared to US$79.87 at week open, reflecting w/w gain and YTD depreciation of 1.50% and 5.63% respectively.

Gold prices rose marginally last week, closing on a positive note, amid increasing bets that the Federal Reserve was close to ending its rate hike cycle. Gold settled at US$1,966.60, from US$1,964.40 last week, reflecting w/w and YTD appreciations of 0.11% and 7.69% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,415.00 per tonne on Friday, from US$3,307.00 last week, reflecting w/w and YTD appreciations of 3.27% and 31.55% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Odious Debt: Odious debt, also known as illegitimate debt, is when a country's government changes and the successor government does not want to pay debts incurred by the previous government. Usually, successor governments argue that the previous government misappropriated money it had borrowed and that they should not be held responsible for the previous regime’s alleged misdeeds.

Source: https://www.investopedia.com/terms/o/odious-debt.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@cidaninvestments.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.