STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the second week on the back of price increases by 3 counters. The GSE Composite Index (GSE-CI) gained 17.94 points (+0.57%) to close the week at 3,172.43 points, reflecting a year-to-date (YTD) gain of 1.35%. The GSE Financial Stocks Index (GSE-FI) also gained 2.79 points (+0.15%) to close the week at 1,910.16 points, reflecting a year-to-date (YTD) gain of 0.45%.

Market capitalization increased by 0.26% to close the week at GH¢74,417.23 million, from GH¢74,222.16 million at the close of the previous week. This reflects a YTD gain of 0.71%.

The week recorded a total of 707,196 shares valued at GH¢1,898,286.89 changing hands, compared with 4,929,372 shares, valued at GH¢7,974,511.20 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 57.72% and 30.11% of shares traded respectively.

The market ended the week with 3 advancers and 1 laggard as indicated in the table below.

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢11.9800/$, compared with GH¢11.9601/$ at week open, reflecting w/w and YTD depreciations of 0.17% and 0.83% respectively. This compares with a loss of 20.59% a year ago.            

The Cedi however declined against the GBP for the week. It traded at GH¢15.2566/£, compared with GH¢15.1589/£ at week open, reflecting w/w and YTD losses of 0.64% and 0.81% respectively. This compares with a depreciation of 22.91% a year ago.

The Cedi also edged lower against the Euro for the week. It traded at GH¢13.0186/€, compared with GH¢12.9829/€ at week open, reflecting w/w loss and YTD appreciation of 0.27% and 0.83% respectively. This compares with a depreciation of 22.09% a year ago.    

The Cedi retracted against the Canadian Dollar at week end. It opened at GH¢8.8495/C$ but closed at GH¢8.9053/C$, reflecting w/w loss and YTD gain of 0.63% and 1.19% respectively. This compares with a depreciation of 22.11% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢5,495.86 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢5,270.38 million raised in the previous week.       

The 91-Day Bill settled at 28.59% p.a. from 28.88% p.a. last week whilst the 182-Day Bill settled at 31.10% p.a. from 31.40% p.a. last week. The 364-Day Bill settled at 31.80% p.a. from 32.00% 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 rose for a second week in a row and settled at their highest in nearly two months as positive U.S. economic growth and signs of Chinese stimulus boosted demand expectations. Brent futures traded at US$83.55 a barrel, compared to US$78.56 at week open, reflecting w/w and YTD appreciations of 6.35% and 8.45% respectively.

Gold prices advanced, tracking mild weakness in the dollar as traders hunkered down before a slew of key U.S. economic readings for the week. Gold settled at US$2,036.10, from US$2,029.30 last week, reflecting w/w gain and YTD depreciation of 0.34% and 1.72% respectively.

The price of Cocoa rose for the week. Cocoa traded at US$4,672.00 per tonne on Friday, from US$4,583.00 last week, reflecting w/w and YTD appreciations of 1.94% and 11.34% respectively.

 International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Disinflation: Disinflation is used to describe the slowing of price inflation. In other words, it is a decrease in the rate of inflation.

Source:

https://corporatefinanceinstitute.com/resources/economics/disinflation/

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