STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines by 3 counters which outweighed the effect of the price gains by 6 other counters. The GSE Composite Index (GSE-CI) lost 17.95 points (-0.58%) to close the week at 3,051.37 points, reflecting a year-to-date (YTD) gain of 24.86%. The GSE Financial Stocks Index (GSE-FI) however gained 60.75 points (+3.58%) to close the week at 1,756.12 points, reflecting a YTD loss of 14.44%.

Market capitalization decreased by 0.27% to close the week at GH¢72,886.84 million, from GH¢73,081.94 million at the close of the previous week. This reflects a YTD gain of 12.99%.

The week recorded a total of 1,644,283 shares valued at GH¢2,633,098.25 changing hands, compared with 770,483 shares, valued at GH¢3,479,581.70 in the preceding week.

SOGEGH dominated the volume of trades for the week whiles MTNGH dominated the value of trades for the week, accounting for 48.49% and 36.22% of shares traded respectively.

The market ended the week with 6 advancers and 3 decliners as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢11.0207/$, compared with GH¢11.0102/$ at week open, reflecting w/w and YTD depreciations of 0.10% and 22.18% respectively. This compares with a loss of 27.05% a year ago.        

The Cedi also weakened against the GBP for the week. It traded at GH¢13.8762/£, compared with GH¢13.8393/£ at week open, reflecting w/w and YTD depreciations of 0.27% and 25.69% respectively. This compares with a depreciation of 14.78% a year ago.

The Cedi weakened again against the Euro for the week. It traded at GH¢11.8844/€, compared with GH¢11.8767/€ at week open, reflecting w/w and YTD depreciations of 0.06% and 23.04% respectively. This compares with a depreciation of 17.30% a year ago.     

The Cedi weakened further against the Canadian Dollar at week end. It opened at GH¢8.0799/C$ but closed at GH¢8.1026/C$, reflecting w/w and YTD depreciations of 0.28% and 21.97% respectively. This compares with a depreciation of 24.62% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,526.83 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢3,206.23 million raised in the previous week.

The 91-Day Bill settled at 27.36% p.a. from 27.02% p.a. last week whilst the 182-Day Bill settled at 28.71% p.a. from 28.62% p.a. last week. The 364-Day Bill settled at 31.66% p.a. from 31.24% 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 rose to their highest in over half a year, buoyed by expectations of tightening supplies. Brent futures traded at US$88.55 a barrel, compared to US$84.48 at week open, reflecting w/w and YTD appreciations of 4.82% and 3.07% respectively.

Gold prices closed higher just over 1% after a mixed U.S. jobs report for August, where payrolls came in higher than forecast. Gold settled at US$1,967.10, from US$1,939.90 last week, reflecting w/w and YTD appreciations of 1.40% and 7.72% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,574.00 per tonne on Friday, from US$3,430.00 last week, reflecting w/w and YTD appreciations of 4.20% and 37.46% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Hybrid Fund: A hybrid fund is an investment fund that is characterized by diversification among two or more asset classes. These funds typically invest in a mix of stocks and bonds. They may also be known as asset allocation funds.

Source: https://www.investopedia.com/terms/h/hybridfund.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@cidaninvestments.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.