STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price gains by 8 counters. The GSE Composite Index (GSE-CI) gained 86.96 points (+2.83%) to close the week at 3,158.79 points, reflecting a year-to-date (YTD) gain of 29.25%. The GSE Financial Stocks Index (GSE-FI) also gained 101.44 points (+5.75%) to close the week at 1,866.08 points, reflecting a YTD loss of 9.09%.

Market capitalization increased by 1.28% to close the week at GH¢74,041.92 million, from GH¢73,109.24 million at the close of the previous week. This reflects a YTD gain of 14.78%.

The week recorded a total of 7,542,344 shares valued at GH¢14,942,850.94 changing hands, compared with 32,686,742 shares, valued at GH¢44,684,880.94 in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 71.59% and 52.39% of shares traded respectively.

The market ended the week with 8 advancers and 1 decliner as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated against the USD for the week. It traded at GH¢11.0708/$, compared with GH¢11.0516/$ at week open, reflecting w/w and YTD depreciations of 0.17% and 22.53% respectively. This compares with a loss of 27.55% a year ago.

The Cedi however strengthened against the GBP for the week. It traded at GH¢13.7284/£, compared with GH¢13.7913/£ at week open, reflecting w/w gain and YTD depreciation of 0.46% and 24.89% respectively. This compares with a depreciation of 14.08% a year ago.

The Cedi again inched up against the Euro for the week. It traded at GH¢11.8155/€, compared with GH¢11.8391/€ at week open, reflecting w/w gain and YTD depreciation of 0.20% and 22.60% respectively. This compares with a depreciation of 17.70% a year ago.     

The Cedi lost against the Canadian Dollar at week end. It opened at GH¢8.1116/C$ but closed at GH¢8.1907/C$, reflecting w/w and YTD depreciations of 0.97% and 22.81% respectively. This compares with a depreciation of 24.06% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,346.58 billion for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,907.27 billion raised in the previous week.

The 91-Day Bill settled at 28.12% p.a. from 27.79% p.a. last week whilst the 182-Day Bill settled at 29.39% p.a. from 29.12% p.a. last week. The 364-Day Bill settled at 32.17% p.a. from 31.97% 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 gained as supply tightened, spearheaded by Saudi Arabian production cuts and optimism around Chinese demand to lift crude. Brent futures traded at US$93.93 a barrel, compared to US$90.65 at week open, reflecting w/w and YTD appreciations of 3.62% and 9.34% respectively.

Gold prices rose as markets bet that the Federal Reserve will keep interest rates on hold, while growing fears of a U.S. government shutdown spurred some safe-haven demand. Gold settled at US$1,946.20, from US$1,942.70 last week, reflecting w/w and YTD appreciations of 0.18% and 6.57% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,757.00 per tonne on Friday, from US$3,609.00 last week, reflecting w/w and YTD appreciations of 4.10% and 44.50% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Excise Duty: Excise duty is tax imposed on the manufacture, sale or consumption of some selected products such as alcoholic drinks, tobacco products and petroleum products. It is also imposed on imported products to compensate for the internal levy on goods of like nature.

Source: https://gra.gov.gh/domestic-tax/tax-types/excise-duty/

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 guarantee