STOCK MARKET REVIEW

The stock market closed weaker in the review week. The GSE Composite Index (GSE CI) moderated by 36.54 points (-1.62%) to close at 2,212.21 points, compared to 2,248.75 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 1.99%. The GSE Financial Stocks Index also shed 39.82 points to close the week at 2002.52 points, representing YTD loss of 0.85%.

Market capitalization also decreased by 0.66% for the week from GH¢57,093.45 million at the close of the previous week to GH¢56,714.42 million at the close of the week. This represents YTD decline of 0.14%.   

There was less activity on the market compared with the preceding week. A sum of   3,625,470 shares, valued at GH¢2,703,767.00 changed hands for the week, compared with total volume and value of 42,030,468 and GH¢33,602,321 recorded in the preceding week respectively. MTN Ghana dominated both volume and value of shares traded for the week respectively. It accounted for 88.91% (3,296,562 shares) of total volume of shares and 82.17% (GH¢2,228,454.00) of total value of shares traded for the week.

The market closed on Friday with 8 laggards for the week. Unilever Ghana Ltd. led the laggards with a 14.63% decline in price. Its share price closed at GH¢14 per share from GH¢16.40 per share at week open. Thirty-two (32) counters remained flat at the closing bell on Friday.

The graphs and table below highlight activity on the market during the week.

CURRENCY MARKET

The Cedi continued with its recent resurgence against the USD. It traded at GH¢5.4672/$ on Friday, compared with GH¢5.5267/$ at week open, reflecting w/w and YTD appreciations of 1.09% and 1.22% respectively against the USD. This compares with YTD depreciation of 2.68% a year ago.

The Cedi also strengthened against the Euro on the week. It traded at GH¢6.0476/€, compared with GH¢6.0932/€ at week open, reflecting w/w and YTD appreciations of 0.75% and 2.71% respectively against the Euro. This compares with YTD depreciation of 2.84% a year ago.

The Cedi again strengthened against the GBP on the week. It traded at GH¢7.1924/£, compared with GH¢7.2234£ at week open, reflecting w/w and YTD appreciations of 0.43% and 1.72% respectively against the GBP. This compares with YTD depreciation of 4.67% a year ago.

The Cedi further closed stronger against the CAD for the week. It opened at GH¢4.2065/C$ but closed at GH¢4.1327/C$, reflecting w/w and YTD appreciations of 1.79% and 3.28% respectively against the CAD. This compares with YTD depreciation of 6.32% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢960.12 million in the week under review across the 91-day, 182-day and 364-day treasury bills. This compared with GH¢925.48 million raised in the previous week.

The 91–day bill stayed flat at 14.69% whilst the 182-day and 364-day bills shed 1bp and 7bps to close at 15.14% and 17.81% respectively.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices edged higher for the week as investors use the yellow metal as hedge against the Coronavirus. Gold futures settled at US$1,582.90 per ounce on Friday, reflecting w/w and YTD gains of 0.70% and 4.07% respectively.

Oil prices tallied losses for the week as the Coronavirus continues to weaken China’s oil demand through the loss of output. Brent futures traded at US$58.16 a barrel on Friday, reflecting w/w and YTD losses of 4.17% and 11.88% respectively.

Prices of Cocoa meanwhile inched up for the week. Cocoa futures settled at US$2,777.00 per tonne on Friday, reflecting w/w and YTD gains of 1.61% and 9.33% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Real Estate Investment Trust: A corporation or trust that uses the pooled capital of many investors to purchase and manage income property (equity REIT) and/or mortgage loans (mortgage REIT). REITs are traded on major exchanges just like stocks. They are also granted special tax considerations. REITs offer several benefits over actually owning properties. First, they are highly liquid, unlike traditional real estate. Second, REITs enable sharing in non-residential properties as well, such as hotels, malls, and other commercial or industrial properties.

Sourcewww.investorwords.com

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: JedidiahJojoAnsah

Email:jansah@cidaninvestments.com

Tel:+233 (0) 54 295 1048

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@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.