STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 5 counters. The GSE Composite Index (GSE-CI) gained 90.05 points (+3.40%) to close the week at 2,736.34 points, reflecting a year-to-date (YTD) gain of 11.97%. The GSE Financial Stocks Index (GSE-FI) also gained 3.44 points (+0.20%) to close the week at 1,694.47 points, reflecting a YTD loss of 17.45%.

Market capitalization increased by 1.40% to close the week at GH¢68,267.81 million, from GH¢67,327.45 million at the close of the previous week. This reflects a YTD gain of 5.83%.

The week recorded a total of 1,900,358 shares valued at GH¢8,320,821.93 changing hands, compared with 1,272,253 shares, valued at GH¢4,230,312.69 in the preceding week.

GGBL dominated the volume of trades for the week, while New Gold dominated the value of trades for the week, accounting for 76.34% and 57.09% of shares traded respectively.

The market ended the week with 5 advancers and 1 decliner as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi appreciated marginally against the USD for the week. It traded at GH¢10.9882/$, compared with GH¢10.9898/$ at week open, reflecting w/w gain and YTD depreciation of 0.01% and 21.95% respectively. This compares with a loss of 16.76% a year ago.

The Cedi also strengthened against the GBP for the week. It traded at GH¢13.9677/£, compared with GH¢14.0840/£ at week open, reflecting w/w gain and YTD depreciation of 0.83% and 26.17% respectively. This compares with a depreciation of 8.36% a year ago.

The Cedi again strengthened against the Euro for the week. It traded at GH¢11.9653/€, compared with GH¢12.0074/€ at week open, reflecting w/w gain and YTD depreciation of 0.35% and 23.56% respectively. This compares with a depreciation of 10.35% a year ago.     

The Cedi further strengthened against the Canadian Dollar at week end. It opened at GH¢8.3268/C$ but closed at GH¢8.3240/C$, reflecting w/w gain and YTD depreciation of 0.03% and 24.05% respectively. This compares with a depreciation of 15.20% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,278.18 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢3,015.74 million raised in the previous week.

The 91-Day Bill settled at 22.97% p.a. from 21.69% p.a. last week whilst the 182-Day Bill settled at 25.44% p.a. from 24.97% p.a. last week. The 364-Day Bill settled at 29.25% p.a. from 28.91% 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 retreated after a series of rate hikes by the US Central Bank, and the indication of more to come, added to concerns over global economic growth. Brent futures traded at US$73.85 a barrel, compared to US$76.14 at week open, reflecting w/w and YTD depreciations of 3.01% and 14.04% respectively.

Gold prices closed lower last week as uncertainty over the Federal Reserve’s next interest rate decision kept traders wary of the yellow metal. Gold settled at US$1,929.60, from US$1,971.20 last week, reflecting w/w loss and YTD appreciation of 2.11% and 5.66% respectively.

The price of Cocoa declined for the week. Cocoa traded at US$3,123.00 per tonne on Friday, from US$3,188.00 last week, reflecting w/w loss and YTD appreciation of 2.04% and 20.12% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Mark-to-market losses: Mark-to-market losses are losses generated through an accounting entry rather than the actual sale of a security. Mark-to-market losses can occur when financial instruments held are valued at the current market value. If a security was purchased at a certain price and the market price later fell, the holder would have an unrealized loss, and marking the security down to the new market price would result in the mark-to-market loss. Mark-to-market accounting is part of the concept of fair value accounting, which attempts to give investors more transparent and relevant information.

Source: https://www.investopedia.com/terms/m/mark-to-market-losses.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

Name: Julian Sapara-Grant

Email:jsgrant@cidaninvestments.com

Tel:  +233 (0) 20 821 2079

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

House No. 261

Haatso, North Legon – Accra

Tel: +233 (0) 27 690 0011/ 55 989 9935

Fax : +233 (0)30 254 4351

Email : info@cidaninvestmens.com

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.