STOCK MARKET REVIEW

The Ghana Stock Exchange started the new month strong on the back of price increases by 4 counters.

The GSE Composite Index (GSE-CI) grew by 15.92 points (+0.30%) for the week to close at 5,245.36 points, reflecting a year-to-date (YTD) gain of 7.30%. The GSE Financial Index (GSE-FI) also gained 21.85 points (+0.88%) for the week to close at 2,497.19 points, reflecting a year-to-date (YTD) appreciation of 4.89%. 

Market capitalization edged up by 0.75% to close the week at GH¢118,049.65 million, from GH¢117,170.63 million at the close of the previous week. This reflects a YTD gain of 6.01%.

The week recorded a total of 2,297,665 shares valued at GH¢18,808,488.11, compared with 3,009,693 shares, valued at GH¢3,929,670.83 traded in the preceding week.

MTNGH dominated the volume of trades for the week while New Gold Exchange Traded Fund dominated the value of trades for the week accounting for 32.64% and 63.59% of the volume and value of shares traded respectively.

The market ended the week with 4 advancers and 1 laggard, as indicated in the table below.

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi slipped against the USD for the week. It traded at GH¢15.4850/$, compared with GH¢15.3001/$ at week open, reflecting w/w and YTD depreciations of 1.19% and 5.07% respectively. This compares with a loss of 1.96% a year ago.   

The Cedi lost more grounds against the GBP for the week. It traded at GH¢19.2177/£, compared with GH¢19.0003/£ at week open, reflecting w/w and YTD depreciations of 1.13% and 4.25% respectively. This compares with depreciation of 1.06% a year ago.

The Cedi’s fall against the Euro deepened for the week. It traded at GH¢16.0288/€, compared with GH¢15.9012/€ at week open, reflecting w/w and YTD losses of 0.80% and 5.08% respectively. This compares with a gain of 0.48% a year ago. 

The Cedi declined against the Canadian Dollar for the week. It opened at GH¢10.5616/C$ and closed at GH¢10.8199/C$, reflecting w/w and YTD depreciations of 2.39% and 5.63% respectively. This compares with an appreciation of 0.18% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢7,650.73 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢7,995.56 million raised in the previous week.       

The 91-Day Bill settled at 27.98% p.a. from 28.41% p.a. last week whilst the 182-Day Bill settled at 28.69% p.a. from 28.90% p.a. last week.

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

 Source: Bank of Ghana

Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices settled lower after Trump repeated a pledge to raise U.S. oil production, unnerving traders a day after the country reported a much bigger than anticipated jump in crude inventories. Brent futures traded at US$74.66 a barrel, compared to US$76.76 at week open, reflecting w/w loss and YTD gain of 2.74% and 0.03% respectively.

Gold prices climbed to new heights, on renewed concerns about a global trade war after President Trump touted fresh tariffs on many countries next week. Gold settled at US$2,887.60, from US$2,835.00 last week, reflecting w/w and YTD gains of 1.86% and 9.34% respectively.

The price of Cocoa slipped for the week. Cocoa traded at US$10,113.00 per tonne on Friday, from US$10,987.00 last week, reflecting w/w and YTD depreciations of 7.95% and 12.40% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Arbitrage Pricing Theory (APT): It is a multi-factor asset pricing model. It's based on the idea that an asset's returns can be predicted using the linear relationship between the asset’s expected return and a number of macroeconomic variables that capture systematic risk. It is a useful tool for analyzing portfolios from a value investing perspective, in order to identify securities that may be temporarily mispriced.

Source:

https://www.investopedia.com/terms/a/apt.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 in 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