STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) again closed the week with mixed performance as investor activity remained strong despite a marginal decline in the main market index.

The GSE Composite Index (GSE-CI) declined by 157.93 points (-2.15%) for the week to close at 7,172.44 points, reflecting a year-to-date (YTD) gain of 46.72%.  

The GSE Financial Index (GSE-FI), however, increased by 32.34 points (+0.95%) for the week to close at 3,444.30 points, reflecting a year-to-date (YTD) gain of 44.67%. 

Market capitalization dipped by 1.27% to close the week at GH¢147,703.09 million, from GH¢149,598.17 million at the close of the previous week. This reflects a YTD gain of 32.64%.

The week recorded a total of 17,081,517 shares, valued at GH¢67,569,870.48, compared with 2,155,384 shares valued at GH¢15,508,391.08 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 89.76% and 85.43% of the volume and value of shares traded, respectively.

The market closed the week with 6 advancers and 1 decliner as indicated below:

 Source: Ghana Stock Exchange.

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢11.9600/$, compared with GH¢11.4000/$ at week open, reflecting w/w loss and YTD appreciation of 4.68% and 22.91% respectively. This compares with a depreciation of 22.58% a year ago.    

The Cedi also slipped against the GBP. It traded at GH¢16.1789/£, compared with GH¢15.3997/£ at week open, reflecting w/w depreciation and YTD gain of 4.82% and 13.73% respectively. This compares with a depreciation of 24.89% a year ago.

The Cedi fell against the Euro for the second week. It traded at GH¢14.0479/€, compared with GH¢13.3360/€ at week open, reflecting w/w loss and YTD appreciation of 5.07% and 8.30% respectively. This compares with a depreciation of 22.83% a year ago.    

The Cedi also lost grounds against the Canadian Dollar for the week. It opened at GH¢8.3022/C$ and closed at GH¢8.6444/C$, reflecting w/w loss and YTD gain of 3.96% and 18.12% respectively. This compares with a depreciation of 20.37% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢4,364.78 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢3,335.37 million raised in the previous week.       

The 91-Day Bill settled at 10.42% p.a. from 10.33% p.a. last week, whilst the 182-Day Bill settled at 12.41% p.a. from 12.37% p.a. last week. The 364-Day Bill settled at 12.97% p.a. from 13.00% 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

COMMODITY MARKET

Oil prices fell as a weak U.S. jobs report dimmed the outlook for energy demand, while swelling supplies looked to grow further after OPEC and allied producers met over the weekend. Brent futures traded at US$65.50 a barrel, compared to US$68.12 at week's open, reflecting w/w and YTD depreciations of 3.85% and 12.25% respectively.

Gold prices rose on growing bets on a Federal Reserve interest rate cut next week. Gold settled at US$3,653.30, from US$3,530.70 last week, reflecting w/w and YTD appreciations of 3.47% and 38.33% respectively.

The price of Cocoa again slipped for the week. Cocoa traded at US$7,471.00 per tonne on Friday, from US$7,710.00 last week, reflecting w/w and YTD losses of 3.10% and 35.29% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Plain Vanilla: It is the most basic or standard version of a financial instrument, usually options, bonds, futures, and swaps. It is the opposite of an exotic instrument, which alters the components of a traditional financial instrument, resulting in a more complex security.

 Source: https://www.investopedia.com/terms/p/plainvanilla.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) 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.