STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price drops by 6 counters. The GSE Composite Index (GSE-CI) lost 38.55 points (-1.59%) to close the week at 2,386.82 points, reflecting a year-to-date (YTD) loss of 2.34%. The GSE Financial Stocks Index (GSE-FI) also lost 97.56 points (-4.92%)  for the week closing at 1,885.95 points, reflecting a YTD loss of 8.12%.

Market capitalization decreased by 0.64% to close the week at GH¢64,024.52 million, from GH¢64,436.21 million at the close of the previous week. This reflects a YTD decline of 0.11%.

The week witnessed a total of 441,791 shares valued at GH¢14,337,999.62 changing hands, compared with 2,342,002 shares, valued at GH¢4,540,534.90   in the preceding week.

MTN  dominated the volume of trades for the week whiles New Gold dominated the value of trades for the week ,  accounting for 56.45% and 96.98% of shares traded respectively. The market ended the week with 3 advancers and 6 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¢11.0138/$, compared with GH¢11.0132/$ at week open, reflecting w/w and YTD depreciations of 0.005% and 22.13% respectively. This compares with YTD loss of 14.22% a year ago.           

The Cedi also retreated against the GBP for the week. It traded at GH¢13.1912/£, compared with GH¢13.1718/£ at week open, reflecting w/w and YTD depreciations of 0.15% and 21.83% respectively. This compares with YTD depreciation of 12.16% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢11.6757/€, compared with GH¢11.6256/€ at week open, reflecting w/w and YTD depreciations of 0.43% and 21.67% respectively. This compares with YTD loss of 10.63% a year ago.            

The Cedi further weakened against the Canadian Dollar for the week. It opened at GH¢8.0720/C$ but closed at GH¢8.0151/C$, reflecting w/w and YTD depreciations of 0.15% and 21.79% respectively. This compares with YTD depreciation of 13.46% a year ago.

 Source: Bank of Ghana

COMMODITY MARKET

Crude oil prices jumped almost 4% for the week, on the back of gained momentum on positive factory data from top oil importer China. Brent futures traded at US$85.83 a barrel, compared to US$82.82 at week open, reflecting w/w gain  and YTD loss of 3.63% and 0.09% respectively.

Gold prices advanced for the week as recent comments from Federal Reserve officials helped provide more clarity on the path of monetary policy this year. Gold settled at US$1,854.60, from US$1,809.20 last week, reflecting w/w and YTD appreciations of 2.51% and 1.56% respectively.

The price of Cocoa recorded an increase for the week. Cocoa traded at US$2,760.00  per tonne on Friday, from US$2,748.00 last week, reflecting  w/w and YTD appreciations of 0.44% and 6.15% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Right of First Offer (ROFO): A right of first offer (ROFO) is a contractual obligation that allows the holder to purchase an asset before the owner tries to sell it to someone else. If the right holder is no longer interested in the property, the seller can then sell it to a third party. Rights of first offer are most commonly used in the real estate industry and the sale of businesses.

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