STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price decline  by 1 counter. The GSE Composite Index (GSE CI) lost 0.89 points (-0.04%) to close at 2,460.44 points, reflecting year-to-date (YTD) loss of 11.79%. The GSE Financial Stocks Index (GSE FI) also  lost 1.60 points (-0.08%) to close at 2,068.16 points, reflecting YTD loss of 3.89%.

Market capitalization increased  by 0.03% to close the week at GH¢64,478.26 million, from GH¢64,458.05 million at the close of the previous week. This reflects a YTD decrease of 0.03%.

Trading activity recorded a total of 3,546,068 shares valued at GH¢59,618,839.97 changing hands, compared with 4,443,096 shares, valued at GH¢30,079,436.97  in the preceding week.

MTN  dominated volume of trades whiles New Gold dominated value of trades for the week, accounting for 79.15% and 95.59% of shares traded respectively.

The market ended the week with 2 advancers  and a decliner as indicated on the table below. `

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢10.7169/$, compared with GH¢9.6375/$ at week open, reflecting w/w and YTD depreciations of 10.07% and 43.96% respectively. This compares with YTD depreciation of 2.07% a year ago.       

The Cedi also weakened against the GBP for the week. It traded at GH¢11.9987/£, compared with GH¢10.7034/£ at week open, reflecting w/w and YTD depreciations of 10.79% and 32.27% respectively. This compares with YTD depreciation of 2.69% a year ago.

The Cedi continued its downward trend against the Euro for the week. It traded at GH¢10.4318/€, compared with GH¢9.4200/€ at week open, reflecting w/w and YTD depreciations of 9.70% and 34.55% respectively. This compares with YTD appreciation of 3.54% a year ago.        

The Cedi again weakened against the Canadian Dollar for the week. It opened at GH¢7.0364/C$ but closed at GH¢7.7313/C$, reflecting w/w  and YTD depreciations of 8.99% and 38.67% respectively. This compares with YTD depreciation of 4.78% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢974.51 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,357.21  million raised in the previous week.

The 91-Day Bill settled at 31.39% p.a from 30.96% p.a. last week whilst the 182-Day Bill settled at  32.24% p.a from 31.94% p.a. last week. The 364-Day Bill settled at 32.07% p.a from 31.55% p.a last week. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Oil prices fell Friday, ending a difficult week on a negative note on fears a global economic slowdown and further Covid-19 restrictions in China will severely hit demand. Brent futures traded at US$91.63 a barrel on Friday, compared to US$97.92 at week open. This reflects w/w loss and YTD appreciation of 6.42% and 17.81% respectively.

Gold prices hovered above annual lows on Tuesday after tumbling sharply on hawkish signals from the Federal Reserve. Gold settled at US$1,648.90, from US$1,709.30 last week, reflecting w/w and YTD  loss of 3.53% and 9.83% respectively.

Prices of Cocoa increased for the week. The commodity traded at US$2,377.00 per tonne on Friday, from US$2,396.00 last week, reflecting  w/w  and YTD depreciations of 0.79% and 5.67% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Funded Debt:  Funded debt is a company's debt that matures in more than one year or one business cycle. This type of debt is classified as such because it is funded by interest payments made by the borrowing firm over the term of the loan.

Funded debt is also called long-term debt since the term exceeds 12 months.

Source: https://www.investopedia.com/terms/f/fundeddebt.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

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

Haatso, North Legon – Accra

Tel: +233 (0) 26171 7001/ 26 300 3917

Fax: +233 (0)30 254 4351

Email: info@cidaninvestmens.com

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.