STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened for the second consecutive week on the back of gains by 2 counters. The GSE Composite Index (GSE CI)  gained 38.17 points (+1.52%) to close at 2,545.48 points, reflecting year-to-date (YTD) loss of 8.74%. The GSE Financial Stocks Index (GSE FI) also gained 6.64 points (+0.31%) to close at 2,176.97 points, reflecting year-to-date (YTD) gain of 1.17%.

Market capitalization inched up by 5.19% to close the week at GH¢64,841.21 million, from GH¢61,643.87 million at the close of the previous week. This reflects YTD increase of 0.54%.

Trading activity recorded a total of 5,819,658 shares valued at GH¢6,556,541 changing hands, compared with 8,475,595 shares, valued at GH¢9,046,592 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting, for 98.89% and 78.99% of volume and value of shares traded respectively.  

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

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢7.2345/$, compared with GH¢7.2150/$ at week open, reflecting w/w and YTD depreciations of 0.27% and 16.98% respectively. This compares with YTD appreciation of 0.07% a year ago.       

The Cedi  strengthened against the GBP for the week. It traded at GH¢8.7136/£, compared with GH¢8.8683/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.78% and 6.73% respectively. This compares with YTD depreciation of 0.95% a year ago.

The Cedi also strengthened against the Euro for the week. It traded at GH¢7.5218/€, compared with GH¢7.6162/€ at week open, reflecting w/w appreciation and YTD depreciation of 1.26% and 9.22% respectively. This compares with YTD appreciation of 3.43% a year ago.   

The Cedi meanwhile weakened against the Canadian Dollar for the week. It opened at GH¢5.5918/C$ but closed at GH¢5.6016/C$, reflecting w/w and  YTD depreciations of 0.17% and 15.35% respectively. This compares with YTD depreciation of 2.97% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢827.53  million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,441.07   million raised in the previous week.

The 91-Day Bill settled at 25.88% p.a from  25.64% p.a. last week whilst the 182-Day Bill settled at 26.57% p.a from 26.40% p.a. last week. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude  Oil declined as concerns over slowing economic growth have outweighed a further tightening of supply. Brent futures traded at US$111.63 a barrel on Friday, compared to US$113.12 at week open. This reflects a w/w loss and YTD gain of 1.32% and 43.52% respectively.

Gold prices fell following a tax hike on gold imports by Indian authorities to support the rupee. Gold settled at US$1,801.50, from US$1,828.90  last week, reflecting w/w and YTD  losses of 1.50 % and  1.48% respectively.

Prices of Cocoa declined for the week. The commodity traded at US$2,265.00 per tonne on Friday, from US$2,441.50 last week, reflecting  w/w and YTD losses of 7.23% and 10.12% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Payback Period: The term payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, it is the length of time an investment reaches a breakeven point.

Source: https://www.investopedia.com/terms/p/paybackperiod.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).

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.