STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines by 6 counters. The GSE Composite Index (GSE CI) lost 4.89 points (-0.20%) to close the week at 2,429.55 points, reflecting a year-to-date (YTD) loss of 0.59%. The GSE Financial Stocks Index (GSE FI) also lost 4.02 points (-0.20%) to  close the week at 2,040.96 points, reflecting a YTD loss of 0.57%.

Market capitalization decreased by 0.09% to close the week at GH¢64,495.09 million, from GH¢64,553.59 million at the close of the previous week. This reflects a YTD depreciation of 0.02%.

Trading activity recorded a total of 119,777 shares valued at GH¢2,068,375.71 changing hands, compared with 693,771 shares, valued at GH¢1,535,678.12   in the preceding week.

MTN  dominated volume of trades for the week whiles New Gold dominated value of trades for the week,  accounting for 55.79% and 93.20% of shares traded respectively.

The market ended the week with 1 advancer and 6 laggards as indicated on the table below. `

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢10.8000/$, compared with GH¢10.3359/$ at week open, reflecting w/w and YTD depreciations of 4.11% and 20.59% respectively. This compares with YTD loss of 0.27% a year ago.         

The Cedi also weakened against the GBP for the week. It traded at GH¢13.3769/£, compared with GH¢12.7979/£ at week open, reflecting w/w and YTD depreciations of 4.33% and 22.91% respectively. This compares with YTD appreciation of 0.69% a year ago.

The Cedi again lost  against the Euro for the week. It traded at GH¢11.7387/€, compared with GH¢11.2026/€ at week open, reflecting w/w and YTD depreciations of 4.57% and 22.09% respectively. This compares with YTD appreciation of 1.75% a year ago.        

The Cedi likewise weakened against the Canadian Dollar for the week. It opened at GH¢7.6866/C$ but closed at GH¢8.1168/C$, reflecting w/w  and YTD depreciations of 5.30% and 22.11% respectively. This compares with YTD appreciation of 0.51% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,983.10 million for the week across the 91-Day , 182-Day and 364-Day Treasury Bills. This compared with GH¢1,930.74 million raised in the previous week.

The 91-Day Bill settled at 35.71% p.a from 35.63% p.a. last week whilst the 182-Day Bill settled at  35.76% p.a from 35.81% p.a. last week. The  364-Day Bill settled at  35.81% p.a from 35.56% p.a. last week

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

 Source: Bank of Ghana

COMMODITY MARKET

Oil prices settled lower as indications of strong Russian oil supply offset better-than-expected U.S. economic growth, and hopes of a rapid recovery in Chinese demand. Brent futures traded at US$86.66 a barrel, compared to US$87.63 at week open, reflecting w/w loss and YTD appreciation of 1.11% and 0.87% respectively.

Gold prices inched up as metal markets hunkered down before the release of the Federal Reserve’s preferred inflation gauge, while a recovery in the dollar also pressured prices following better-than-expected U.S. economic growth figures. Gold settled at US$1,928.60, from US$1,928.20 last week, reflecting w/w  and YTD appreciations of 0.02% and 5.61% respectively.

The price of Cocoa recorded an increase for the week. The commodity traded at US$2,627.00  per tonne on Friday, from US$2,569.00 last week, reflecting  w/w  and YTD appreciations of 2.26% and 1.04% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Repurchase Agreement: A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price is the implicit overnight interest rate. Repos are typically used to raise short-term capital. They are also a common tool of central bank open market operations.

Source: https://www.investopedia.com/terms/r/repurchaseagreement.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.