STOCK MARKET REVIEW

The Ghana Stock Exchange improved for the second consecutive week on the back of movements by 3 counters. The GSE Composite Index (GSE CI) gained 27.49 points (+1.00%) to close at 2,789.52 points, reflecting a year-to-date (YTD) gain of 0.01%. The GSE Financial Stocks Index (GSE FI) also gained 7.27 points (+0.34%) to close at 2,154.03 points, reflecting a year-to-date (YTD) gain of 0.10%.

Market capitalization inched up by 0.45% to close the week at GH¢64,501.06 million, from GH¢64,213.36 million at the close of the previous week. This reflects YTD increase of 0.01%.

Trading activity witnessed a total of 2,490,883 shares valued at GH¢3,422,444 changing hands for the week compared with 1,521,398 shares, valued at GH¢2,393,281 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 84.06% and 67.60% respectively of total value and volume of shares traded.

The market closed the week with 3 price gainers and no  decliners as indicated on the table below.

CURRENCY MARKET

The Cedi recorded marginal depreciation against the USD for the week. It traded at GH¢6.0099/$ on Friday, compared to GH¢6.0063/$ at week open, reflecting w/w and YTD depreciations of 0.06% and 0.06% respectively. This compares with YTD depreciation of 0.03% a year ago.

The Cedi gained marginally against the GBP for the week as it traded at GH¢8.1482/£, compared with GH¢8.2181/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.86% and 0.26% respectively. This compares with YTD appreciation of 0.01% a year ago.

The Cedi also gained against the Euro for the week as it traded at GH¢6.8189€, compared with GH¢6.8630/€ at week open, reflecting w/w and YTD appreciations of 0.65% and 0.13%  respectively. This compares with YTD appreciation of 0.73% a year ago.

The Cedi again depreciated on the week against the Canadian Dollar. It opened at GH¢4.7922/C$ but closed at GH¢4.7925/C$, reflecting w/w and YTD depreciations of 0.01%  and 1.06%  respectively. This compares with YTD appreciation of 0.24% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,465.06 billion for the week across the 91-Day, 182-Day, 364-Day Treasury bills, 6-Year FXR Bond and a tap-issue of the recently issued 3-Year Bond, compared to GH¢1,065.41 billion raised in the previous week.

The 91-Day bill gained 3bps to settle at 12.55% p.a whilst the 182-Day bill remained unchanged at 13.21% p.a. The 364-Day bill gained 4bps to settle at 16.70% p.a. The 6-Year FXR Bond meanwhile settled at 21.75% pa from 18.80% p.a.

The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude prices dipped on Friday after rising to seven-year highs earlier in the week. The slid was on account of unexpected rise in U.S. crude and fuel inventories while investors took profits from the high prices. Brent futures traded at US$87.89 a barrel on Friday, reflecting w/w  and YTD gains of 2.13% and 13.00%.

Gold held near its highest level in almost two months amid demand for an inflation hedge. The yellow metal settled at $1,831.80 from US$1,816.50 last week, reflecting w/w gain and YTD loss of 0.84% and 0.17% respectively.

Prices of Cocoa dipped for the week  as the commodity traded at US$2,576.00 per tonne on Friday, from US$2,520.00 last week, reflecting  w/w loss and YTD appreciation of 3.12% and 2.22% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Harvest Strategy: A harvest strategy is a marketing and business strategy that involves a reduction or a termination of investments in a product, product line, or line of business so that the entities involved can reap—or, harvest—the maximum profits. A harvest strategy is typically employed toward the end of a product's life cycle when it is determined that further investment will no longer boost product revenue.

Source: https://www.investopedia.com/terms/h/harvest-strategy.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).

Website: www.cidaninvestments.com

DisclaimerThe 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.