STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines by 5 counters. The GSE Composite Index (GSE-CI) lost 51.14 points (-1.99%) to close the week at 2,519.92 points, reflecting a year-to-date (YTD) gain of 3.11%. The GSE Financial Stocks Index (GSE-FI) also lost 10.08 points (-0.60%) to close the week at 1,677.69 points, reflecting a YTD loss of 18.26%.

Market capitalization decreased by 0.80% to close the week at GH¢65,873.36 million, from GH¢66,407.09 million at the close of the previous week. This reflects a YTD gain of 2.12%.

The week recorded a total of 6,453,209 shares valued at GH¢7,818,133.86 changing hands, compared with 6,018,367 shares, valued at GH¢66,002,877.74 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 58.22% and 53.62% of shares traded respectively.

The market ended the week with 3 advancers and 5 laggards as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi lost grounds against the USD for the week. It traded at GH¢10.9755/$, compared with GH¢10.8128/$ at week open, reflecting w/w and YTD depreciation of 1.48% and 21.86% respectively. This compares with a loss of 15.90% a year ago.      

The Cedi also weakened against the GBP for the week. It traded at GH¢13.5361/£, compared with GH¢13.4971/£ at week open, reflecting w/w and YTD depreciations of 0.29% and 23.82% respectively. This compares with a depreciation of 9.72% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢11.7537/€, compared with GH¢11.7050/€ at week open, reflecting w/w and YTD depreciations of 0.41% and 22.19% respectively. This compares with a depreciation of 10.67% a year ago.         

The Cedi further weakened against the Canadian Dollar at week end. It opened at GH¢8.0121/C$ but closed at GH¢8.0517/C$, reflecting w/w and YTD depreciations of 0.49% and 21.48% respectively. This compares with a depreciation of 15.25% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,183.51 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,728.02 million raised in the previous week.

The 91-Day Bill settled at 20.80% p.a. from 20.56% p.a. last week whilst the 182-Day Bill settled at 23.62% p.a. from 23.36% p.a. last week. The 364-Day Bill settled at 28.02% p.a. from 27.59% 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 as U.S. lawmakers said they had reached a provisional agreement to raise the debt ceiling. Brent futures traded at US$75.58 a barrel, compared to US$74.17 at week open, reflecting w/w gain and YTD loss of 1.90% and 12.02% respectively.

Gold prices hovered near two-month lows as markets remained on edge over raising the U.S. debt limit. Gold settled at US$1,944.10, from US$1,978.70 last week, reflecting w/w loss and YTD gain of 1.89% and 8.51% respectively.

The price of Cocoa fell for the week. Cocoa traded at US$2,991.00 per tonne on Friday, from US$3,068.00 last week, reflecting w/w loss and YTD appreciation of 2.51% and 15.04% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Scrip Dividends: A scrip dividend refers to a certificate that shareholders are given as an option to receive dividends as cash at a later date or to receive them as extra shares. A scrip dividend is similar to an automatic reinvestment since shareholders get extra shares of the same company.

Source: https://study.com/learn/lesson/scrip-dividend-reasons-examples.html

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@cidaninvestmens.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.