STOCK MARKET REVIEW

The Ghana Stock Exchange edged higher for the week on the back of price gains by 3 counters, amid price falls of some financial stocks. The GSE Composite Index (GSE-CI) gained 14.05 points (+0.42%) for the week to close at 3,355.93 points, reflecting a year-to-date (YTD) gain of 7.21%.

The GSE Financial Stocks Index (GSE-FI), however, lost 6.85 points (-0.34%) for the week to close at 1,995.46 points, reflecting a year-to-date (YTD) gain of 4.94%.

Market capitalization increased by 0.20% to close the week at GH¢76,510.09 million, from GH¢76,357.31 million at the close of the previous week. This reflects a YTD gain of 3.54%.

The week recorded a total of 195,661,017 shares valued at GH¢249,689,732.56 changing hands, compared with 1,130,068 shares, valued at GH¢1,645,316.99 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 99.88% and 99.77% of shares traded respectively. The market ended the week with 3 growers and 3 laggards as indicated in the table below.

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its weekly depreciation run against the USD for the week. It traded at GH¢12.6047/$, compared with GH¢12.5475/$ at week open, reflecting w/w and YTD depreciations of 0.45% and 5.75% respectively. This compares with a loss of 22.14% a year ago.             

The Cedi also worsened against the GBP for the week. It traded at GH¢16.1246/£, compared with GH¢16.1236/£ at week open, reflecting w/w and YTD losses of 0.01% and 6.15% respectively. This compares with a depreciation of 23.06% a year ago.

The Cedi again lost against the Euro for the week. It traded at GH¢13.7929/€, compared with GH¢13.7275/€ at week open, reflecting w/w and YTD depreciations of 0.47% and 4.83% respectively. This compares with a depreciation of 22.16% a year ago.      

The Cedi also depreciated against the Canadian Dollar at week end. It opened at GH¢9.3135/C$ but closed at GH¢9.3584/C$, reflecting w/w and YTD losses of 0.48% and 3.71% respectively. This compares with a depreciation of 21.15% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢5,370.55 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢4,830.77 million raised in the previous week.       

The 91-Day Bill settled at 26.50% p.a. from 26.75% p.a. last week whilst the 182-Day Bill settled at 29.00% p.a. from 29.25% p.a. last week. The 364-Day Bill settled at 29.60% p.a. from 29.85% 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 hovered near a 4-½ month high as softer exports from Iraq and Saudi Arabia furthered the notion of tighter markets. Brent futures traded at US$85.34 a barrel, compared to US$82.08 at week open, reflecting w/w and YTD appreciations of 3.97% and 10.77% respectively.

Gold prices fell in Asian trade, retreating from record highs as traders lock-in some profits ahead of key U.S. inflation data that is widely expected to factor into the path of interest rates. Gold settled at US$2,161.50, from US$2,185.50 last week, reflecting w/w loss and YTD gain of 1.10% and 4.33% respectively.

The price of Cocoa furthered its growth for the week. Cocoa traded at US$8,018.00 per tonne on Friday, from US$6,997.00 last week, reflecting w/w and YTD appreciations of 14.59% and 91.09% respectively.

 International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Bankruptcy: Bankruptcy is a legal proceeding initiated when a person or business is unable to repay outstanding debts or obligations. It offers a fresh start for people who can no longer afford to pay their bills.

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