STOCK MARKET REVIEW

The Ghana Stock Exchange settled higher on the back of price gains by three (3) counters.

The GSE Composite Index (GSE-CI) rose by 152.60 points (+2.52%) for the week to close at 6,214.34 points, reflecting a year-to-date (YTD) gain of 27.12%.

The GSE Financial Index (GSE-FI) also gained 34.69 points (+1.12%) for the week to close at 3,129.19 points, reflecting a year-to-date (YTD) gain of 31.43%. 

Market capitalization inched up by 1.74% to close the week at GH¢135,766.84 million, from GH¢135,416.78 million at the close of the previous week. This reflects a YTD gain of 23.72%.

The week recorded a total of 2,740,190 shares valued at GH¢31,156,179.73, compared with 13,903,553 shares, valued at GH¢50,960,261.58 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 67.93% and 51.24% of the volume and value of shares traded respectively.

The market ended its weekly run with 3 advancers and 3 laggards, as indicated in the table below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi extended its appreciation streak against the USD for the week. It traded at GH¢13.9001/$, compared with GH¢14.5500/$ at week open, reflecting w/w and YTD appreciations of 4.68% and 5.76% respectively. This compares with a depreciation of 11.45% a year ago.           

The Cedi also appreciated against the GBP for the week. It traded at GH¢18.4648/£, compared with GH¢19.3901/£ at week open, reflecting w/w gain and YTD depreciations of 5.01% and 0.35% respectively. This compares with depreciation of 10.13% a year ago.

The Cedi further improved against the Euro for the week. It traded at GH¢15.7449/€, compared with GH¢16.5543/€ at week open, reflecting w/w gain and YTD loss of 5.14% and 3.37% respectively. This compares with a depreciation of 9.18% a year ago.         

The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢10.4990/C$ and closed at GH¢10.0780/C$, reflecting w/w and YTD gains of 4.18% and 1.32% respectively. This compares with a depreciation of 8.08% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢4,729.55 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢6,695.08 million raised in the previous week.       

The 91-Day Bill settled at 15.23% p.a. from 14.76% p.a. last week whilst the 182-Day Bill settled at 15.78% p.a. from 14.85% p.a. last week. The 364-Day Bill settled at 16.96% p.a. from 15.52% 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 fell by more than $4 a barrel after OPEC+ decided to accelerate its output hikes, causing concerns about more supply coming to the market. Brent futures traded at US$61.29 a barrel, compared to US$66.87 at week open, reflecting w/w and YTD depreciations of 8.34% and 17.89% respectively.

Gold prices extended sharp declines for the third consecutive session, as bullion’s safe-haven appeal eroded amid hopes of trade deal talks between the U.S. and its key trading partners. Gold settled at US$3,243.30, from US$3,298.40 last week, reflecting w/w loss and YTD appreciation of 1.67% and 22.81% respectively.

The price of Cocoa slid for the week. Cocoa traded at US$8,877.00 per tonne on Friday, from US$9,392.00 last week, reflecting w/w and YTD losses of 5.48% and 23.11% respectively.

International Commodity Prices

Source: www.investing.com.

INVESTMENT TERM OF THE WEEK

Quarterly Income Debt Securities (QUIDS): It is a tradable debt instruments that pay a quarterly coupon. QUIDS are sold in small denominations, but have a long lifespan before maturing. Companies typically issue QUIDS through a subsidiary, which allows QUIDS holders to move ahead of other creditors and shareholders in the event of bankruptcy.

Source:

https://www.investopedia.com/terms/q/quids.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

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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.