STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 4 counters. The GSE Composite Index (GSE-CI) gained 10.95 points (+0.36%) to close the week at 3,061.68 points, reflecting a year-to-date (YTD) gain of 25.28%.

 The GSE Financial Stocks Index (GSE-FI) however lost 15.56 points (-0.92%) to close the week at 1,677.55 points, reflecting a YTD loss of 18.27%.

Market capitalization increased by 0.16% to close the week at GH¢72,998.84 million, from GH¢72,879.79 million at the close of the previous week. This reflects a YTD gain of 13.16%.

The week recorded a total of 83,744,573 shares valued at GH¢108,831,486.87 changing hands, compared with 1,235,452 shares, valued at GH¢2,038,053.81 in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 99.58% and 98.90% of shares traded respectively.

The market ended the week with 4 advancers and 2 laggards as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi was largely stable against the USD for the week. It traded at GH¢11.0051/$, compared with GH¢11.0031/$ at week open, reflecting w/w and YTD depreciations of 0.02% and 22.07% respectively. This compares with a loss of 26.30% a year ago.

The Cedi also depreciated against the GBP for the week. It traded at GH¢14.0189/£, compared with GH¢13.9613/£ at week open, reflecting w/w and YTD depreciations of 0.41% and 26.44% respectively. This compares with a depreciation of 15.56% a year ago.

The Cedi however strengthened against the Euro for the week. It traded at GH¢11.9656/€, compared with GH¢12.0517/€ at week open, reflecting w/w gain and YTD depreciation of 0.72% and 23.57% respectively. This compares with a depreciation of 16.56% a year ago.      

The Cedi also appreciated against the Canadian Dollar at week end. It opened at GH¢8.1853/C$ but closed at GH¢8.1231/C$, reflecting w/w gain and YTD depreciation of 0.77% and 22.17% respectively. This compares with a depreciation of 24.42% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,453.63 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢3,507.87 million raised in the previous week.

The 91-Day Bill settled at 26.71% p.a. from 26.09% p.a. last week whilst the 182-Day Bill settled at 27.88% p.a. from 27.60% p.a. last week. The 364-Day Bill settled at 31.08% p.a. from 30.70% 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 settled lower as investors weighed worries about China's embattled economy against expectations of tighter supply in the United States. Brent futures traded at US$84.80 a barrel, compared to US$86.81 at week open, reflecting w/w and YTD depreciations of 2.32% and 1.29% respectively.

Gold tumbled to a five-month low as surging U.S. Treasury yields and a strong dollar delivered a one-two punch to bulls in the yellow metal. Gold settled at US$1,916.50, from US$1,946.60 last week, reflecting w/w loss and YTD appreciation of 1.55% and 4.94% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,366.00 per tonne on Friday, from US$3,297.00 last week, reflecting w/w and YTD appreciations of 2.09% and 29.46% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Waterfall Payment: Waterfall payment structures require that higher-tiered creditors receive interest and principal payments, while the lower-tiered creditors receive principal payments after the higher-tiered creditors are paid back in full. Debtors typically structure these schemes into such tranches to prioritize the highest-principal loans first because they are also likely the most expensive.

Source: https://www.investopedia.com/terms/w/waterfallpayment.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

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 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.