STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price decreases by 2 counters. The GSE Composite Index (GSE-CI) lost 70.66 points (-2.74%) to close the week at 2,682.85 points, reflecting a year-to-date (YTD) gain of 9.78%. The GSE Financial Stocks Index (GSE-FI) lost 8.90 points (-0.49%) to close the week at 1,797.77 points, reflecting a YTD loss of 12.41%.

Market capitalization decreased by 1.16% to close the week at GH¢67,166.52 million, from GH¢67,955 million at the close of the previous week. This reflects a YTD gain of 4.12%.

The week witnessed a total of 3,745,503 shares valued at GH¢4,494,334.19 changing hands, compared with 362,899 shares, valued at GH¢698,869.13 in the preceding week.

MTN  dominated both  volume and value  of trades for the week,  accounting for 97.46% and 97.49% of shares traded respectively.

The market ended the week with 2 laggards as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD  for the week. It traded at GH¢10.9398/$, compared with GH¢10.9300/$ at week open, reflecting w/w and YTD depreciations of 0.09% and 21.61% respectively. This compares with YTD loss of 15.55% a year ago.           

The Cedi again strengthened  against the GBP for the week. It traded at GH¢13.5900/£, compared with GH¢13.5964/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.05% and 24.12% respectively. This compares with YTD depreciation of 12.29% a year ago.

The Cedi weakened  against the Euro for the week. It traded at GH¢12.0212/€, compared with GH¢11.9434/€ at week open, reflecting w/w and YTD depreciations of 0.65% and 23.92% respectively. This compares with YTD loss of 11.71% a year ago.            

The Cedi also closed lower  against the Canadian Dollar at week end. It opened at GH¢8.1153/C$ but closed at GH¢8.1796/C$, reflecting w/w and YTD losses of 0.79% and 22.71% respectively. This compares with YTD depreciation of 16.12% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,791.58 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,883.02 million raised in the previous week.

The 91-Day Bill settled at 19.74% p.a from 19.69% p.a. last week whilst the 182-Day Bill settled at  22.47% p.a from 22.25% p.a. last week. The 364-Day Bill settled at 26.90% p.a from 26.96% p.a. last week.

The tables below highlight primary market activity at close of the week.

 Source: Bank of Ghana

 Source: Bank of Ghana

COMMODITY MARKET

Oil prices edged higher, after the International Energy Agency forecast record global demand this year. Brent futures traded at US$86.31 a barrel, compared to US$85.12 at week open, reflecting w/w  and YTD appreciations of 1.40% and 0.47% respectively.

Gold prices dropped, underpinned by markets wait for more cues on the U.S. economy from inflation data and the minutes of the Federal Reserve’s March meeting. Gold settled at US$2,002.00, from US$2,011.90 last week, reflecting w/w loss  and YTD appreciation of 2.18% and 10.17% respectively.

The price of Cocoa realised some marginal gains for the week. Cocoa traded at US$2,984.00  per tonne on Friday, from US$2,919.00 last week, reflecting  w/w  and YTD gains of 2.23% and 14.77% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Strip Bond: A strip bond is a debt obligation whose principal and coupon payments are removed (or stripped) by investment firms or dealers and sold separately to investors. An investor who buys the separated principal from the bond, known as the residue, receives an amount equal to the face value of the bond when it matures.

Source: https://www.investopedia.com/terms/s/stripbond.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

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

Haatso, North Legon – Accra

Tel: +233 (0) 26171 7001/ 26 300 3917

Fax: +233 (0)30 254 4351

Email: info@cidaninvestmens.com

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.