STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price decrease by 1 counter. The GSE Composite Index (GSE-CI) lost 70.66 points (+0.21%) to close the week at 2,670.80 points, reflecting a year-to-date (YTD) gain of 9.28%. The GSE Financial Stocks Index (GSE-FI) remained flat closing the week at 1,758.28 points, reflecting a YTD loss of 14.34%.

Market capitalization decreased by 1.08% to close the week at GH¢67,541.02 million, from GH¢68,278.45 million at the close of the previous week. This reflects a YTD gain of 4.70%.

The week recorded a total of 7,941,302 shares valued at GH¢10,227,007.98 changing hands, compared with 917,967 shares, valued at GH¢1,114,391.05 in the preceding week.

MTNGH  dominated both  volume and value  of trades for the week,  accounting for 69.83% and 67.09% of shares traded respectively.

The market ended the week with 1 laggard 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¢10.9518/$, compared with GH¢10.9516/$ at week open, reflecting w/w and YTD depreciations of 0.002% and 21.69% respectively. This compares with YTD loss of 15.56% a year ago.           

The Cedi again weakened against the GBP for the week. It traded at GH¢13.8305/£, compared with GH¢13.7624/£ at week open, reflecting w/w  and YTD depreciations of 0.49% and 25.44% respectively. This compares with YTD depreciation of 9.02% a year ago.

The Cedi appreciated marginally against the Euro for the week. It traded at GH¢12.0680/€, compared with GH¢12.0876/€ at week open, reflecting w/w gain and YTD depreciation of 0.16% and 24.21% respectively. This compares with YTD loss of 8.91% a year ago.             

The Cedi  lost against the Canadian Dollar at week end. It opened at GH¢8.1569/C$ but closed at GH¢8.0765/C$, reflecting w/w and YTD depreciations of 0.99% and 22.49% respectively. This compares with YTD depreciation of 14.64% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,567.79 million for the week across the 91-Day , 182-Day and 364-Day Treasury Bills. This compared with GH¢2,067.20 million raised in the previous week.

The 91-Day Bill settled at 20.26% p.a from 19.95% p.a. last week whilst the 182-Day Bill settled at  22.49% p.a from 22.71% p.a. last week. The 364-Day Bill settled at  21.48% p.a from 27.26% p.a. last week

The tables below highlight primary market activity at close of the week.

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices fell 5%, extending steep losses from the previous session after the U.S. Federal Reserve raised interest rates and as investors fretted about the economy. Brent futures traded at US$75.30 a barrel, compared to US$79.54 at week open, reflecting w/w and YTD depreciations of 5.33% and 12.35% respectively.

Gold prices moved upwards last week, underpinned by increased safe haven demand amid renewed fears of a banking crisis and uncertainty over monetary policy before a Federal Reserve rate decision. Gold settled at US$2,024.80, from US$1, 999.10 last week, reflecting w/w  and YTD appreciations of 1.29% and 10.88% respectively.

The price of Cocoa recorded a loss for the week. Cocoa traded at US$3,109.00  per tonne on Friday, from US$3,174.00 last week, reflecting  w/w loss  and YTD appreciation of 2.05% and 19.58% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Bear Market: A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.

Source: https://www.investopedia.com/terms/b/bearmarket.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.