STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the week on the back of declines in share prices of 2 counters. The GSE Composite Index (GSE CI) lost 129.11 points (-4.80%) to close at 2,561.83 points, reflecting year-to-date (YTD) loss of 8.16%. The GSE Financial Stocks Index (GSE FI) also lost 2.92 points (-0.13%) to close at 2,206.32 points, reflecting year-to-date (YTD) gain of 2.53%.

Market capitalization declined  by 2.12% to close the week at GH¢62,508.52 million, from GH¢63,859.57  million at the close of the previous week. This reflects YTD decrease of 3.08%.

Trading activity registered a total of 631,248,142 shares valued at GH¢580,516,363.55 changing hands, compared with  10,671,215 shares, valued at GH¢10,716,327.61 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 99.88%  and 99.87% of volume and value of shares traded respectively.

The market ended the week with 1 leader and 2 laggards as indicated on the table below. `

CURRENCY MARKET

The Cedi marginally depreciated against the USD for the week. It traded at GH¢7.1163/$, compared with GH¢7.1132/$ at week open, reflecting w/w and YTD depreciations of 0.04% and 15.60% respectively. This compares with YTD appreciation of 0.51% a year ago.             

The Cedi appreciated against the GBP for the fourth consecutive week. It traded at GH¢8.7022/£, compared with GH¢8.7859/£ at week open, reflecting w/w appreciation  and YTD depreciation of 0.96% and 6.61% respectively. This compares with YTD depreciation of 2.51% a year ago.

The Cedi  also appreciated  against  the Euro for the week. It traded at GH¢7.4001/€, compared with GH¢7.5280/€ at week open, reflecting w/w appreciation and YTD depreciation of 1.73% and 7.73% respectively. This compares with YTD appreciation of 1.57% a year ago.    

The Cedi further appreciated against the Canadian Dollar for the week. It opened at GH¢5.5235/C$ but closed at GH¢5.4975/C$, reflecting w/w appreciation and YTD depreciation of 0.47% and 13.75% respectively. This compares with YTD depreciation of 4.28% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,248.67 million for the week across the 91-Day, 182-Day  and 364-Day Treasury Bills. This compared with GH¢2,130.58 million raised in the previous week.

The 91-Day Bill settled at 18.23% p.a from  17.88% p.a. last week whilst the 182-Day Bill settled at 19.26% p.a from  18.81% p.a. last week. The 364-Day Treasury Bill settled at 21.55% p.a from 20.65% p.a last week.

The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude oil prices rose up again on Friday but registered a third successive weekly loss on concerns that global demand will be hit by subdued economic growth. Brent futures traded at US$111.55 a barrel on Friday, compared to US$113.12 at week open. This reflects w/w loss and YTD gains of 1.39% and 43.42% respectively.

Gold prices plunged for the week on the back of a resurgent dollar which scaled fresh 20-year highs. Gold settled at US$1,808.20, from US$1,883.50  last week, reflecting w/w and YTD  decline of 4.00% and 1.12% respectively.

Prices of Cocoa inched up  for the week. The commodity traded at US$2,483.00 per tonne on Friday, from US$2,471.00 last week, reflecting  w/w gain and YTD loss of 0.49% and 1.47% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Price Skimming: An inflation-indexed security is a security that guarantees a return higher than the rate of inflation if it is held to maturity. Inflation-indexed securities link their capital appreciation, or coupon payments, to inflation rates. Investors seeking safe returns with little to no risk will often hold inflation-indexed securities. A common example are Treasury Inflation-Protected Securities, or TIPS.

An inflation-indexed security is also known as an inflation-linked or a real return security.

Source: https://www.investopedia.com/terms/i/inflation-indexedsecurity.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).

Website: www.cidaninvestments.com

DisclaimerThe 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.