STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) bolstered its strong start to the year on the back of price gains by seven (7) counters.

The GSE Composite Index (GSE-CI) rose by 37.25 points (+0.42%) for the week to close at 8,807.50 points, reflecting a year-to-date (YTD) gain of 0.42%.  

The GSE Financial Index (GSE-FI) also gained 22.13 points (+0.48%) for the week to close at 4,669.30 points, reflecting a year-to-date (YTD) gain of 0.48%. 

Market capitalization grew marginally by 0.12% to close the week at GH¢172,249.71 million, from GH¢172,042.59 million at the close of the previous week. This reflects a YTD gain of 0.12%.

The week recorded a total of 21,546,466 shares, valued at GH¢90,039,797.61, compared with 990,663 shares valued at GH¢3,643,315.64 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 92.80% and 93.28% of the volume and value of shares traded, respectively.

The market closed the week with 7 advancers and 4 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated against the USD for the week. It traded at GH¢10.7001/$, compared with GH¢10.5001/$ at week open, reflecting w/w and YTD depreciations of 1.87% and 2.34% respectively. This compares with a depreciation of 0.34% a year ago.      

The Cedi also depreciated against the GBP for the week. It traded at GH¢14.3760/£, compared with GH¢14.1650/£ at week open, reflecting w/w and YTD losses of 1.47% and 2.21% respectively. This compares with an appreciation of 2.28% a year ago.

The Cedi retreated against the Euro for the week. It traded at GH¢12.4738/€, compared with GH¢12.3314/€ at week open, reflecting w/w and YTD depreciations of 1.14% and 1.61% respectively. This compares with an appreciation of 0.84% a year ago.   

The Cedi lost some ground against the Canadian Dollar for the week. It opened at GH¢7.6481/C$ and closed at GH¢7.7187/C$, reflecting w/w and YTD losses of 0.91% and 1.26%, respectively. This compares with a depreciation of 0.05% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢9,082.93 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢4,213.89 million raised in the previous week.       

The 91-Day Bill settled at 11.17% p.a. from 11.12% p.a. last week, whilst the 182-Day Bill settled at 12.62% p.a. from 12.55% p.a. last week. The 364-Day Bill settled at 12.90% p.a. from 12.93% 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

COMMODITY MARKET

Oil prices edged higher as heightened concerns surrounding Iran and potential supply disruptions outweighed the prospect of increased crude supply from Venezuela. Brent futures traded at US$63.34 a barrel, compared to US$61.76 at week's open, reflecting w/w and YTD appreciations of 2.56% and 4.09% respectively.

Gold prices jumped to a record high as escalating unrest in Iran, mounting political pressure on the U.S. Federal Reserve, and weaker U.S. jobs data boosted demand for safe-haven assets. Gold settled at US$4,500.90, from US$4,451.50 last week, reflecting w/w and YTD appreciations of 1.11% and 2.61% respectively.

The price of Cocoa slid for the week. Cocoa traded at US$5,345.00 per tonne on Friday, from US$6,077.00 last week, reflecting w/w and YTD losses of 12.05% and 11.87% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Quantity-Adjusting Option: also commonly called a quanto option, is a cross-currency derivative in which the underlying asset is denominated in one currency but settlement is made in another currency at a predetermined exchange rate. Another name for these options is a guaranteed exchange rate option. Quanto options come in both call and put varieties

Source:

https://www.investopedia.com/terms/q/quantooption.asp

ABOUT CIDAN

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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.