STOCK MARKET REVIEW

The Ghana Stock Exchange remained flat for the week amid a price decrease by 1 counter. The GSE Composite Index (GSE-CI) remained flat for the week closing at 3,172.43 points, reflecting a year-to-date (YTD) gain of 1.35%. The GSE Financial Stocks Index (GSE-FI) also remained flat for the week closing at 1,910.16 points, reflecting a year-to-date (YTD) gain of 0.45%.

Market capitalization increased by 0.04% to close the week at GH¢74,449.35 million, from GH¢74,417.23 million at the close of the previous week. This reflects a YTD gain of 0.75%.

The week recorded a total of 2,729,938 shares valued at GH¢4,058,820.50 changing hands, compared with 707,196 shares, valued at GH¢1,898,286.89 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 84.27% and 79.35% of shares traded respectively.

The market ended the week with 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¢12.0536/$, compared with GH¢11.9800/$ at week open, reflecting w/w and YTD depreciations of 0.61% and 1.44% respectively. This compares with a loss of 20.59% a year ago.            

The Cedi however appreciated against the GBP for the week. It traded at GH¢15.2388/£, compared with GH¢15.2566/£ at week open, reflecting w/w gain and YTD loss of 0.12% and 0.69% respectively. This compares with a depreciation of 20.98% a year ago.

The Cedi edged lower against the Euro for the week. It traded at GH¢15.2388/€, compared with GH¢13.0186/€ at week open, reflecting w/w and YTD losses of 14.57% and 13.86% respectively. This compares with a depreciation of 21.79% a year ago.      

The Cedi also retracted against the Canadian Dollar at week end. It opened at GH¢8.9053/C$ but closed at GH¢8.9461/C$, reflecting w/w loss and YTD gain of 0.46% and 0.73% respectively. This compares with a depreciation of 21.67% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢4,527.87 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢5,495.86 million raised in the previous week.       

The 91-Day Bill settled at 28.30% p.a. from 28.59% p.a. last week whilst the 182-Day Bill settled at 30.79% p.a. from 31.10% p.a. last week. The 364-Day Bill settled at 31.40% p.a. from 31.80% 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 as a higher global economic growth forecast and escalating tensions in the Middle East offset concerns around Chinese demand. Brent futures traded at US$77.33 a barrel, compared to US$83.55 at week open, reflecting w/w loss and YTD appreciation of 7.44% and 0.38% respectively.

Gold prices rose and were undeterred by the Federal Reserve stating that it will likely keep interest rates higher for longer. Gold settled at US$2,053.70, from US$2,026.60 last week, reflecting w/w gain and YTD depreciation of 1.34% and 0.87% respectively.

The price of Cocoa appreciated for the week. Cocoa traded at US$5,009.00 per tonne on Friday, from US$4,672.00 last week, reflecting w/w and YTD appreciations of 7.21% and 19.38% respectively.

 International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Performance Bond: A performance bond is a financial guarantee to one party in a contract against the failure of the other party to meet its obligations. It is also referred to as a contract bond. A performance bond is usually provided by a bank or an insurance company to make sure a contractor completes designated projects.

Source: https://www.investopedia.com/terms/p/performancebond.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.