STOCK MARKET REVIEW

The Ghana Stock Exchange continued its bullish run on the back of price gains by thirteen (13) counters.

The GSE Composite Index (GSE-CI) grew by 70.86 points (+1.16%) for the week to close at 6,180.14 points, reflecting a year-to-date (YTD) gain of 26.42%.

The GSE Financial Index (GSE-FI) also rose by 56.69 points (+1.90%) for the week to close at 3,036.85 points, reflecting a year-to-date (YTD) gain of 27.56%. 

Market capitalization grew by 1.05% to close the week at GH¢136,513.38 million, from GH¢135,095.30 million at the close of the previous week. This reflects a YTD gain of 22.59%.

The week recorded a total of 2,762,058 shares valued at GH¢101,121,343.81, compared with 3,385,289 shares, valued at GH¢9,077,250.47 traded in the preceding week.

MTNGH dominated the volume of trades for the week while New Gold Exchange Traded Fund dominated the value of trades for the week accounting for 48.48% and 93.68% of the volume and value of shares traded respectively.

The market closed another impressive week with 13 advancers, as indicated in the table below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi remained flat against the USD for the week. It traded at GH¢15.5300/$, compared with GH¢15.5300/$ at week open, reflecting w/w and YTD depreciation of 0.00% and 5.34% respectively. This compares with a loss of 7.19% a year ago.               

The Cedi peeled back against the GBP for the week. It traded at GH¢20.0826/£, compared with GH¢20.0547/£ at week open, reflecting w/w and YTD depreciations of 0.14% and 8.37% respectively. This compares with depreciation of 6.15% a year ago.

The Cedi appreciated marginally against the Euro for the week. It traded at GH¢16.8119/€, compared with GH¢16.8839/€ at week open, reflecting w/w gain and YTD loss of 0.43% and 9.50% respectively. This compares with a loss of 5.18% a year ago.      

The Cedi slipped against the Canadian Dollar for the week. It opened at GH¢10.8001/C$ and closed at GH¢10.8210/C$, reflecting w/w and YTD depreciations of 0.19% and 5.46% respectively. This compares with a depreciation of 4.2% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,319.57 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢8,774.02 million raised in the previous week.       

The 91-Day Bill settled at 15.74% p.a. from 15.86% p.a. last week whilst the 182-Day Bill settled at 16.93% p.a. from 16.93% p.a. last week. The 364-Day Bill settled at 18.85% p.a. from 18.97% 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

Source: Bank of Ghana

COMMODITY MARKET

Oil prices edged higher on optimistic outlook that new tariff announcements from U.S. President Donald Trump will not be as severe as first feared. Brent futures traded at US$71.61 a barrel, compared to US$70.58 at week open, reflecting w/w gain and YTD depreciation of 1.46% and 4.06% respectively.

Gold prices soared to an all-time high at week end, following remarks from Fed Chair Jerome Powell and as the U.S. Federal Reserve held interest rates steady as anticipated. Gold settled at US$3,048.40, from US$3,001.10 last week, reflecting w/w and YTD appreciations of 1.58% and 15.43% respectively.

The price of Cocoa rose for the week. Cocoa traded at US$7,765.00 per tonne on Friday, from US$7,728.00 last week, reflecting w/w gain and YTD depreciation of 0.48% and 32.74% respectively.

International Commodity Prices

Source: www.investing.com.

INVESTMENT TERM OF THE WEEK

Options Backdating: It refers to the process of granting an employee stock option (ESO) that is dated before its actual issuance. In this way, the exercise (strike) price of the granted option can be set at a lower price than that of the company's stock price at the granting date. This process makes the granted option "in the money" (ITM) and therefore of greater value to the holder.

Source:

https://www.investopedia.com/terms/o/optionsbackdating.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.