STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 3 counters. The GSE Composite Index (GSE-CI) gained 157.73 points (+5.31%) to close the week at 3,127.43 points, reflecting a year-to-date (YTD) gain of 27.97%.

 The GSE Financial Stocks Index (GSE-FI) also gained 8.61 points (+0.50%) to close the week at 1,715.17 points, reflecting a YTD loss of 16.02%.

Market capitalization increased by 2.38% to close the week at GH¢73,713.69 million, from GH¢71,998.81 million at the close of the previous week. This reflects a YTD gain of 14.27%.

The week recorded a total of 5,832,677 shares valued at GH¢9,145,160.18 changing hands, compared with 4,897,980 shares, valued at GH¢8,419,861.25 in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 95.24% and 94.15% of shares traded respectively.

The market ended the week with 3 advancers as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi appreciated marginally against the USD for the week. It traded at GH¢11.0017/$, compared with GH¢11.0036/$ at week open, reflecting w/w appreciation and YTD depreciation of 0.02% and 22.05% respectively. This compares with a loss of 24.92% a year ago.       

The Cedi also strengthened against the GBP for the week. It traded at GH¢13.9904/£, compared with GH¢14.1485/£ at week open, reflecting w/w gain and YTD depreciation of 1.13% and 26.29% respectively. This compares with a depreciation of 15.64% a year ago.

The Cedi again strengthened against the Euro for the week. It traded at GH¢12.0461/€, compared with GH¢12.1274/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.68% and 24.08% respectively. This compares with a depreciation of 15.95% a year ago.      

The Cedi further appreciated against the Canadian Dollar at week end. It opened at GH¢8.3119/C$ but closed at GH¢8.2476/C$, reflecting w/w gain and YTD depreciation of 0.78% and 23.34% respectively. This compares with a depreciation of 23.29% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,178.24 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,334.77 million raised in the previous week.

The 91-Day Bill settled at 25.57% p.a. from 25.24% p.a. last week whilst the 182-Day Bill settled at 27.28% p.a. from 27.15% p.a. last week. The 364-Day Bill settled at 30.49% p.a. from 30.31% p.a. last week.

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

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices rose more than a dollar a barrel last week, after top producers Saudi Arabia and Russia extended supply cuts through September, adding to undersupply concerns. Brent futures traded at US$86.24 a barrel, compared to US$84.99 at week open, reflecting w/w gain and YTD depreciation of 1.47% and 0.38% respectively.

Gold prices tallied steep losses for the week as signs of a resilient U.S. economy and job market pushed up fears of rising interest rates. Gold settled at US$1,976.10, from US$1,999.90 last week, reflecting w/w loss and YTD appreciation of 1.19% and 8.21% respectively.

The price of Cocoa decreased for the week. Cocoa traded at US$3,510.00 per tonne on Friday, from US$3,525.00 last week, reflecting w/w loss and YTD appreciation of 0.43% and 35.00% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Hurdle Rate: A hurdle rate is the minimum rate of return on a project or investment required by a manager or investor. It allows companies to make important decisions on whether or not to pursue a specific project. The hurdle rate describes the appropriate compensation for the level of risk present—riskier projects generally have higher hurdle rates than those with less risk.

Source: https://www.investopedia.com/terms/h/hurdlerate.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 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.