STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price decreases by 5 counters. The GSE Composite Index (GSE-CI) lost 86.93 points (-3.58%) to close the week at 2,342.62 points, reflecting a year-to-date (YTD) loss of 4.14%. The GSE Financial Stocks Index (GSE-FI) also lost 22.84 points (-1.12%) to  close the week at 2,040.96 points, reflecting a YTD loss of 1.68%.

Market capitalization decreased by 1.38% to close the week at GH¢63,604.41 million, from GH¢64,495.09 million at the close of the previous week. This reflects a YTD depreciation of 1.40%.

Trading activity recorded a total of 902,475 shares valued at GH¢827,347.05 changing hands, compared with 119,777 shares, valued at GH¢2,068,375.71   in the preceding week.

SIC  dominated volume of trades for the week whiles MTN dominated value of trades,  accounting for 35.20% and 31.63% of shares traded respectively.

The market ended the week with 1 advancer and 5 laggards as indicated on the table below. `

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi picked up against the USD for the week. It traded at GH¢10.7990/$, compared with GH¢10.8000/$ at week open, reflecting w/w gain and YTD depreciation of 0.01% and 20.59% respectively. This compares with YTD loss of 1.66% a year ago.             

The Cedi similarly strengthened against the GBP for the week. It traded at GH¢13.0501/£, compared with GH¢13.3769/£ at week open, reflecting w/w gain and YTD depreciation of 2.50% and 20.98% respectively. This compares with YTD depreciation of 1.64% a year ago.

The Cedi also strengthened against the Euro for the week. It traded at GH¢11.6931/€, compared with GH¢11.7387/€ at week open, reflecting w/w gain and YTD depreciation of 0.39% and 21.79% respectively. This compares with YTD loss of 2.10% a year ago.        

The Cedi further strengthened against the Canadian Dollar for the week. It opened at GH¢8.1168/C$ but closed at GH¢8.0716/C$, reflecting w/w gain  and YTD depreciation of 0.56% and 21.67% respectively. This compares with YTD depreciation of 0.90% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,953.83 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,983.10 million raised in the previous week.

The 91-Day Bill settled at 35.75% p.a from 35.71% p.a. last week whilst the 182-Day Bill settled at  35.81% p.a from 35.76% p.a. last week.

The table and graph below highlight primary market yields at close of the week.

 Source: Bank of Ghana

COMMODITY MARKET

Oil prices fell to over three-week lows at the week end in a volatile session, after strong U.S. jobs data raised concerns about higher interest rates and as investors sought more clarity on the imminent EU embargo on Russian refined products. Brent futures traded at US$79.94 a barrel, compared to US$86.40 at week open, reflecting w/w  and YTD depreciations of 7.48% and 6.95% respectively.

Gold tumbled almost 3% last week after a blockbuster U.S. jobs report for January triggered profit-taking on the precious metal’s long-running rally, putting it way off the $2,000-an-ounce target eyed by bulls in the space. Gold settled at US$1,862.90, from US$1,928.60 last week, reflecting w/w loss  and YTD appreciation of 3.41% and 2.01% respectively.

The price of Cocoa recorded a decrease for the week. The commodity traded at US$2,569.00  per tonne on Friday, from US$2,627.00 last week, reflecting  w/w  and YTD depreciations of 2.21% and 1.19% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Reverse Repurchase Agreement: A reverse repurchase agreement (RRP), or reverse repo, is the sale of securities with the agreement to repurchase them at a higher price at a specific future date. A reverse repo refers to the seller side of a repurchase agreement (RP), or repo.

Source: https://www.investopedia.com/terms/r/reverserepurchaseagreement.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

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@cidaninvestmens.com

Website: www.cidaninvestments.com

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.