STOCK MARKET REVIEW

The Ghana Stock Exchange maintained its upward trajectory, driven by price appreciations in nine (9) listed counters.

The GSE Composite Index (GSE-CI) grew by 848.89 points (+6.05%) for the week to close at 14,873.11 points, reflecting a year-to-date (YTD) gain of 69.59%.  

The GSE Financial Index (GSE-FI) also rose by 526.99 points (+6.34%) for the week to close at 8,841.04 points, reflecting a year-to-date (YTD) gain of 90.25%. 

Market capitalization also increased by 4.70% to close the week at GH¢278,983.86 million, from GH¢266,447.66 million at the close of the previous week. This reflects a YTD gain of 62.16%.

The week recorded a total of 13,553,818 shares, valued at GH¢87,326,100.99, compared with 12,704,860 shares valued at GH¢62,320,423.24 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 44.05% and 43.90% of the volume and value of shares traded, respectively.

The market closed the week with 9 advancers and 6 laggards as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its depreciation streak against the USD for the week. It traded at GH¢11.0900/$, compared with GH¢11.0500/$ at week open, reflecting w/w and YTD depreciations of 0.36% and 5.77% respectively. This compares with an appreciation of 1.03% a year ago.

  The Cedi also retracted against the GBP for the week. It traded at GH¢14.9865/£, compared with GH¢14.9811/£ at week open, reflecting w/w and YTD losses of 0.04% and 6.20% respectively. This compares with a depreciation of 5.10% a year ago.

The Cedi strengthened against the Euro for the week. It traded at GH¢12.992/€, compared with GH¢13.0435/€ at week open, reflecting w/w gain and YTD depreciation of 0.39% and 5.54% respectively. This compares with a depreciation of 8.10% a year ago.                

The Cedi lost ground against the Canadian Dollar for the week. It opened at GH¢8.0854/C$ and closed at GH¢8.1083/C$, reflecting w/w and YTD losses of 0.28% and 6.01%, respectively. This compares with a depreciation of 2.75% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,897.10 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢4,090.30 million raised in the previous week.       

The 91-Day Bill settled at 4.92% p.a. from 4.95% p.a. last week, whilst the 182-Day Bill settled at 6.96% p.a. from 6.91% p.a. last week. The 364-Day Bill settled at 10.12% p.a. from 10.13% 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 grew as U.S.-Iran negotiations showed little sign of progress, keeping supply flows through the Strait of Hormuz constrained and stoking fears of a prolonged disruption to global crude markets. Brent futures traded at US$90.38 a barrel, compared to US$95.20 at the week's open, reflecting w/w and YTD gains of 9.68% and 62.91% respectively.

Gold prices dipped as investors were cautious following a diplomatic setback between the U.S. and Iran and ahead of a key Federal Reserve interest rate decision. Gold settled at US$4,740.90, from US$4,879.60 last week, reflecting w/w loss and YTD appreciation of 2.84% and 8.08% respectively.

The price of Cocoa posted some gains for the week. Cocoa traded at US$3,431.00 per tonne on Friday, from US$3,280.00 last week, reflecting w/w gain and YTD loss of 4.60% and 43.43% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Lemon problem: It refers to the issues regarding the value of an investment or product due to a different set of information known by the buyer and the seller. The theory was described by George A. Akerlof, an economist, who presented his ideas in a research paper titled "The Market for "Lemons": Quality Uncertainty and the Market Mechanism."

Source:

https://www.investopedia.com/terms/l/lemons-problem.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.