STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) extended its year-long rally, driven by price appreciations across seventeen (17) listed counters.

The GSE Composite Index (GSE-CI) grew by 1,544.89 points (+15.06%) for the week to close at 11,805.68 points, reflecting a year-to-date (YTD) gain of 34.61%.  

The GSE Financial Index (GSE-FI) also surged by 980.90 points (+17.58%) for the week to close at 6,561.08 points, reflecting a year-to-date (YTD) gain of 41.18%. 

Market capitalization grew by 10.88% to close the week at GH¢217,198.55 million, from GH¢195,887.53 million at the close of the previous week. This reflects a YTD gain of 26.25%.

The week recorded a total of 59,439,666 shares, valued at GH¢338,260,991.55, compared with 34,069,327 shares valued at GH¢139,417,109.86 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 72.91% and 67.17% of the volume and value of shares traded, respectively.

The market closed the week with 17 advancers and 1 laggard as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi gained some ground against the USD for the week. It traded at GH¢10.9700/$, compared with GH¢10.9985/$ at week open, reflecting w/w gain and YTD depreciation of 0.26% and 4.74% respectively. This compares with a depreciation of 5.41% a year ago.       

The Cedi also strengthened against the GBP for the week. It traded at GH¢14.8090/£, compared with GH¢15.0026/£ at week open, reflecting w/w gain and YTD loss of 1.31% and 5.07% respectively. This compares with an appreciation of 6.32% a year ago.

The Cedi improved against the Euro for the week. It traded at GH¢12.9308/€, compared with GH¢13.0440/€ at week open, reflecting w/w gain and YTD depreciation of 0.88% and 5.09% respectively. This compares with a depreciation of 6.35% a year ago.      

The Cedi appreciated marginally against the Canadian Dollar for the week. It opened at GH¢8.0861/C$ and closed at GH¢8.0140/C$, reflecting w/w gain and YTD loss of 0.90% and 4.90%, respectively. This compares with a depreciation of 6.68% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢11,409.98 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢8,993.19 million raised in the previous week.       

The 91-Day Bill settled at 6.45% p.a. from 8.61% p.a. last week, whilst the 182-Day Bill settled at 8.18% p.a. from 10.68% p.a. last week. The 364-Day Bill settled at 10.21% p.a. from 11.06% 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 hit over a six-month high, as geopolitical concerns continued to mount on lingering U.S.-Iran tensions amid lack of progress in Russia-Ukraine peace talks. Brent futures traded at US$71.30 a barrel, compared to US$67.75 at week's open, reflecting w/w loss and YTD appreciation of 5.24% and 17.17% respectively.

Gold prices rose, extending last week’s gains, as U.S. President Donald Trump’s fresh global tariffs lifted bullion’s safe-haven demand. Gold settled at US$5,080.90, from US$5,046.30 last week, reflecting w/w and YTD appreciations of 0.69% and 15.84% respectively.

The price of Cocoa again declined for the week. Cocoa traded at US$3,178.00 per tonne on Friday, from US$3,581.00 last week, reflecting w/w and YTD losses of 11.25% and 47.60% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Key Rate Duration: It is a measure of bond price sensitivity to changes at different points along the yield curve. As opposed to effective duration, which looks at changes in value as a consequence of the yield curve's parallel shifts, key rate duration is used to assess value changes due to non-parallel shifts.

Source: https://www.investopedia.com/terms/k/keyrateduration.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.