STOCK MARKET REVIEW

The Ghana Stock Exchange extended its recovery, with ten (10) counters posting strong price gains at the close of the week, outweighing declines recorded in seven (7) counters.

The GSE Composite Index (GSE-CI) grew by 108.32 points (+0.83%) for the week to close at 13,149.10 points, reflecting a year-to-date (YTD) gain of 49.93%.  

The GSE Financial Index (GSE-FI) also increased by 52.79 points (+0.67%) for the week to close at 7,946.37 points, reflecting a year-to-date (YTD) gain of 70.99%. 

Market capitalization edged higher by 1.59% to close the week at GH¢247,726.23 million, from GH¢243,846.00 million at the close of the previous week. This reflects a YTD gain of 43.99%.

The week recorded a total of 8,657,932 shares, valued at GH¢54,710,764.39, compared with 17,361,811 shares valued at GH¢104,100,864.27 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 52.21% and 45.31% of the volume and value of shares traded, respectively.

The market closed the week with 10 advancers and 7 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi slid against the USD for the week. It traded at GH¢11.0300/$, compared with GH¢11.0000/$ at week open, reflecting w/w and YTD depreciations of 0.27% and 5.26% respectively. This compares with a depreciation of 5.28% a year ago.

The Cedi also slid against the GBP for the week. It traded at GH¢14.8448/£, compared with GH¢14.5613/£ at week open, reflecting w/w and YTD losses of 1.91% and 5.30% respectively. This compares with a depreciation of 9.13% a year ago.

The Cedi weakened against the Euro for the week. It traded at GH¢12.6984/€, compared with GH¢12.6390/€ at week open, reflecting w/w and YTD depreciations of 1.80% and 5.09% respectively. This compares with a depreciation of 13.47% a year ago.                

The Cedi depreciated marginally against the Canadian Dollar for the week. It opened at GH¢7.9039/C$ and closed at GH¢7.9729/C$, reflecting w/w and YTD losses of 0.87% and 4.41%, respectively. This compares with a depreciation of 8.56% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢5,113.44 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢2,948.56 million raised in the previous week.       

The 91-Day Bill settled at 4.91% p.a. from 4.82% p.a. last week, whilst the 182-Day Bill settled at 6.78% p.a. from 6.62% p.a. last week. The 364-Day Bill settled at 9.98% p.a. from 9.84% 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 settled lower, as a ceasefire between the U.S., Israel, and Iran remained fragile while the critical Strait of Hormuz remained largely closed. Brent futures traded at US$95.20 a barrel, compared to US$109.03 at the week's open, reflecting w/w loss and YTD appreciation of 12.68% and 56.45% respectively.

Gold prices ticked up, boosted by a weaker dollar, with risk assets catching a bid after Israel said it would negotiate with Lebanon, removing a key contention point in a fragile Iran ceasefire. Gold settled at US$4,787.40, from US$4,679.70 last week, reflecting w/w and YTD appreciations of 2.30% and 9.14% respectively.

The price of Cocoa grew further for the week. Cocoa traded at US$3,327.00 per tonne on Friday, from US$3,245.00 last week, reflecting w/w gain and YTD loss of 2.53% and 45.14% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Restructuring Charge: It is a one-time expense that a company pays when reorganizing its operations. Companies undertake these moves in an effort to boost profitability, but first take a one-off hit in the form of an upfront restructuring charge. The idea is that, once that charge is taken, there should be no other expenses related to the particular reorganization

Source:

https://www.investopedia.com/terms/r/restructuring-charge.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.