STOCK MARKET REVIEW

The stock market closed stronger in the review week on the back of gains in 3 counters. The GSE Composite Index (GSE CI) gained 46.04 points (1.84%) to close at 2,152.63 points, compared to 2,106.58 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 4.63%. The GSE Financial Stocks Index also added 63.09 points to close the week at 1,891.23 points, reducing its YTD loss to  6.36%.

Market capitalization increased by 0.74% for the week from GH¢55,256.27 million at the close of the previous week to GH¢55,739.11 million at the close of the week. This represents YTD decline of 1.85%.   

There was less activity on the market compared with that of the preceding week. A total of  419,977 shares, valued at GH¢722,370.02 changed hands for the week, compared with 1,001,178 shares valued at GH¢1,502,107.20 recorded in the preceding week. MTNGH  dominated both volume and value of shares traded for the week respectively. MTNGH accounted for 76.93% (323,100 shares) of total volume of shares traded and 30.69% (GH¢221,702.00) of total value of shares traded for the week.

The market closed on Friday with  three laggards and three gainers. Ecobank Ghana Ltd. led the gainers with its share price closing at GH¢7.00 from GH¢5.80. On the flip side, Republic Bank (Ghana) Ltd. led the laggards. It closed trading at GH¢0.57. Thirty five (35) 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 weakened against the USD for the ninth straight week. It traded at GH¢5.5449/$ on Friday, compared with GH¢5.5100/$ at week open, reflecting w/w and YTD depreciations of 0.63% and 0.20% respectively against the USD. This compares with YTD depreciation of 5.27% a year ago.

The Cedi on the contrary strengthened against the Euro on the week. It traded at GH¢5.9912/€, compared with GH¢5.9949/€ at week open, reflecting w/w and YTD appreciations of 0.06% and 3.67% respectively against the Euro. This compares with YTD depreciation of 2.92% a year ago.

The Cedi similarly strengthened against the GBP on the week. It traded at GH¢6.8366/£, compared with GH¢6.8834/£ at week open, reflecting w/w and YTD appreciations of 0.68% and 7.02% respectively against the GBP. This compares with YTD depreciation of 6.22% a year ago.

The Cedi meanwhile weakened against the CAD for the week. It opened trading at GH¢3.9243/C$ but closed at GH¢3.9329/C$, reflecting w/w depreciation and YTD appreciation of 0.22% and 8.52% respectively against the CAD. This compares with YTD depreciation of 6.51% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,134.85 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,358.78 million raised in the previous week.

The 91–Day and 182-Day Bills respectively added 17bps and 4bps to settle at 14.03% each. The 364-Day bill on the other hand trimmed 5bps to settle at 16.74%.

Please see below for more details.

Source: Bank of Ghana

 

COMMODITY MARKET

Gold futures strengthened on the week following gains in U.S. equities which limited liquidations in gold. Gold futures settled at US$1,735.60 per ounce on Friday, reflecting w/w and YTD gains of 2.17% and 14.11% respectively.

Oil prices traded higher on Friday but tallied losses on the week following a plunge in prices on Monday. Brent futures traded at US$21.44 a barrel on Friday, reflecting w/w and YTD losses of 23.65% and 67.52% respectively.

Prices of Cocoa also weakened for the week. Cocoa futures settled at US$2,341.00 per tonne on Friday, reflecting w/w and YTD losses of 1.60% and 7.83% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Retainer Fee: A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. It's most commonly paid to individual third parties that have been engaged by the payer to perform a specific action on their behalf. These fees, almost always paid upfront, only ensure the commitment of the receiver.

Sourcewww.investopedia.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).

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.