STOCK MARKET REVIEW

The Ghana Stock Exchange retracted for the week as MTNGH, a major market mover, saw a dip in price at week’s end.

The GSE Composite Index (GSE-CI) rose by 3.85 points (+0.06%) for the week to close at 6,100.93 points, reflecting a year-to-date (YTD) gain of 24.80%.

The GSE Financial Index (GSE-FI) also gained 0.53 points (+0.02%) for the week to close at 3,062.66 points, reflecting a year-to-date (YTD) gain of 28.64%. 

Market capitalization fell by 0.27% to close the week at GH¢135,263.74 million, from GH¢135,626.56 million at the close of the previous week. This reflects a YTD gain of 21.47%.

The week recorded a total of 1,954,109 shares valued at GH¢6,085,152.90, compared with 3,138,322 shares, valued at GH¢22,882,674.58 traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week accounting for 69.15% and 66.62% of the volume and value of shares traded respectively.

The market growth shrunk for the week on the back of 5 gainers and 2 laggards, as indicated in the table below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi appreciated marginally against the USD for the week. It traded at GH¢15.4600/$, compared with GH¢15.5200/$ at week open, reflecting w/w gain and YTD depreciation of 0.39% and 4.92% respectively. This compares with a loss of 8.99% a year ago.            

The Cedi declined marginally against the GBP for the week. It traded at GH¢20.4868/£, compared with GH¢20.2497/£ at week open, reflecting w/w and YTD depreciations of 1.16% and 10.18% respectively. This compares with depreciation of 6.38% a year ago.

The Cedi recovered against the Euro for the week. It traded at GH¢17.5717/€, compared with GH¢17.5817/€ at week open, reflecting w/w gain and YTD loss of 0.06% and 13.42% respectively. This compares with a loss of 5.55% a year ago.          

The Cedi grew by a slim margin against the Canadian Dollar for the week. It opened at GH¢11.1667/C$ and closed at GH¢11.1526/C$, reflecting w/w gain and YTD depreciation of 0.13% and 8.45% respectively. This compares with a depreciation of 5.03% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢4,630.09 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢6,744.21 million raised in the previous week.       

The 91-Day Bill settled at 15.45% p.a. from 15.45% p.a. last week whilst the 182-Day Bill settled at 16.18% p.a. from 16.21% p.a. last week. The 364-Day Bill settled at 18.62% p.a. from 18.65% 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 higher, supported by hopes for a trade deal between the United States and the European Union and new U.S. sanctions to curb Iranian oil exports. Brent futures traded at US$67.96 a barrel, compared to US$64.76 at week open, reflecting w/w gain and YTD depreciation of 4.94% and 8.95% respectively.

Gold prices surged to hit a new record high, buoyed by sustained safe-haven appeal over elevated U.S.-China trade tensions, and concerns around President Donald Trump’s plan to overhaul the Federal Reserve. Gold settled at US$3,328.40, from US$3,244.60 last week, reflecting w/w and YTD appreciations of 2.58% and 26.03% respectively.

The price of Cocoa decreased for the week. Cocoa traded at US$8,295.00 per tonne on Friday, from US$8,511.00 last week, reflecting w/w and YTD losses of 2.54% and 28.15% respectively.

International Commodity Prices

Source: www.investing.com.

INVESTMENT TERM OF THE WEEK

Scrip Dividend: It refers to a certificate that shareholders are given as an option to receive dividends as cash at a later date or to receive them as extra shares. A scrip dividend is similar to an automatic reinvestment since shareholders get extra shares of the same company.

Source:

https://study.com/learn/lesson/scrip-dividend-reasons-examples.html

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) 54 836 7639

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.