STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 4 counters. The GSE Composite Index (GSE-CI) gained 98.43 points (+2.70%) for the week to close at 3,744.97 points, reflecting a year-to-date (YTD) gain of 19.64%.

The GSE Financial Stocks Index (GSE-FI) also gained 1.38 points (+0.07%) for the week closing at 2,038.44 points, reflecting a year-to-date (YTD) gain of 7.20%.

Market capitalization increased by 4.93% to close the week at GH¢83,885.20 million, from GH¢79,941.42 million at the close of the previous week. This reflects a YTD gain of 13.52%.

The week recorded a total of 224,869,539 shares valued at GH¢329,399,592.47, compared with 4,307,416 shares, valued at GH¢9,577,672.19 traded in the preceding week.

MTNGH dominated the volume and value of trades for the week, accounting for 99.82% and 97.79% of the volume and value of shares traded respectively. The market ended the week with 4 advancers and 1 laggard as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its depreciation run against the USD for the week. It traded at GH¢13.8000/$, compared with GH¢13.6822/$ at week open, reflecting w/w and YTD depreciations of 0.85% and 13.91% respectively. This compares with a loss of 20.69% a year ago.           

The Cedi also depreciated against the GBP for the week. It traded at GH¢17.5281/£, compared with GH¢17.1178/£ at week open, reflecting w/w and YTD losses of 2.34% and 13.66% respectively. This compares with a depreciation of 23.60% a year ago.

The Cedi again retreated against the Euro for the week. It traded at GH¢14.9999/€, compared with GH¢14.7339/€ at week open, reflecting w/w and YTD depreciations of 1.77% and 12.49% respectively. This compares with a depreciation of 21.87% a year ago.         

The Cedi also lost more grounds against the Canadian Dollar for the week. It opened at GH¢10.0122/C$ but closed at GH¢10.1424/C$, reflecting w/w and YTD depreciations of 1.28% and 11.15% respectively. This compares with a depreciation of 21.09% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,212.12 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢4,920.90 million raised in the previous week.       

The 91-Day Bill settled at 25.10% p.a. from 25.20% p.a. last week whilst the 182-Day Bill settled at 26.95% p.a. from 27.00% p.a. last week. The 364-Day Bill settled at 27.95% p.a. from 28.00% 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 higher, as rising hopes for U.S. rate cuts following data showing a cooling job market and weaker inflation boosted bets on firmer crude demand. Brent futures traded at US$83.96 a barrel, compared to US$82.79 at week open, reflecting w/w and YTD gains of 1.41% and 8.98% respectively.

Gold prices hit a record high as increased geopolitical tensions in the Middle East boosted safe-haven demand. At the same time, a broader rally across metal markets also spilt over into the yellow metal. Gold settled at US$2,417.40, from US$2,375.00 last week, reflecting w/w and YTD appreciations of 1.79% and 16.68% respectively.

The price of Cocoa retracted for the week. Cocoa traded at US$7,282.50 per tonne on Friday, from US$9,874.00 last week, reflecting w/w loss and YTD appreciation of 26.25% and 73.56% respectively.

 International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Hostile Takeover: A hostile takeover happens when an entity takes control of a company without the knowledge and against the wishes of the company's management. A hostile takeover is an acquisition strategy requiring that the entity acquire and control more than 50% of the voting shares issued by the company.

Source: https://www.investopedia.com/terms/h/hostiletakeover.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) 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