STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) extended its year-long rally, driven by price appreciations across twenty (20) counters.

The GSE Composite Index (GSE-CI) grew by 1,063.52 points (+9.01%) for the week to close at 12,869.20 points, reflecting a year-to-date (YTD) gain of 46.74%.  

The GSE Financial Index (GSE-FI) also surged by 1,131.80 points (+17.25%) for the week to close at 7,692.88 points, reflecting a year-to-date (YTD) gain of 65.54%. 

Market capitalization rose by 8.53% to close the week at GH¢235,736.20 million, from GH¢217,198.55 million at the close of the previous week. This reflects a YTD gain of 26.25%.

The week recorded a total of 39,536,588 shares, valued at GH¢218,933,102.49, compared with 59,439,666 shares valued at GH¢338,260,991.55 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 79.89% and 80.27% of the volume and value of shares traded, respectively.

The market closed the week with 20 gainers and 1 laggard as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi closed higher against the USD for the week. It traded at GH¢10.6865/$, compared with GH¢10.9700/$ at week open, reflecting w/w gain and YTD depreciation of 2.65% and 2.21% respectively. This compares with a depreciation of 5.34% a year ago.              

The Cedi again improved against the GBP for the week. It traded at GH¢14.3825/£, compared with GH¢14.8090/£ at week open, reflecting w/w gain and YTD loss of 2.97% and 2.84% respectively. This compares with an appreciation of 5.87% a year ago.

The Cedi strengthened against the Euro for the week. It traded at GH¢12.6312/€, compared with GH¢12.9308/€ at week open, reflecting w/w gain and YTD depreciation of 2.37% and 2.84% respectively. This compares with a depreciation of 5.81% a year ago.                

The Cedi appreciated marginally against the Canadian Dollar for the week. It opened at GH¢8.0140/C$ and closed at GH¢7.8398/C$, reflecting w/w gain and YTD loss of 2.22% and 2.79%, respectively. This compares with a depreciation of 5.10% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢8,806.77 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢11,409.98 million raised in the previous week.       

The 91-Day Bill settled at 5.32% p.a. from 6.45% p.a. last week, whilst the 182-Day Bill settled at 6.98% p.a. from 8.18% p.a. last week. The 364-Day Bill settled at 9.76% p.a. from 10.21% p.a. last week.

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

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices climbed higher, as heightened conflict in the Middle East and threats to energy flows through the Strait of Hormuz continued to underpin supply disruption worries. Brent futures traded at US$72.48 a barrel, compared to US$71.30 at week's open, reflecting w/w and YTD appreciations of 1.65% and 19.11% respectively.

Gold prices closed stronger, at week’s end, as investors rushed into safe-haven assets after the U.S. and Israel launched major strikes on Iran, prompting fears of a wider regional conflict. Gold settled at US$5,247.90, from US$5,080.90 last week, reflecting w/w and YTD appreciations of 3.29% and 19.64% respectively.

The price of Cocoa again declined for the week. Cocoa traded at US$2,888.00 per tonne on Friday, from US$3,178.00 last week, reflecting w/w and YTD losses of 9.13% and 52.38% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Rehypothecation: It involves banks and brokers using client collateral for their transactions, offering benefits such as lower borrowing costs and fee rebates. Commonly, a hedge fund's collateral with a brokerage can be utilized by the brokerage for further financial dealings.

Source:

https://www.investopedia.com/terms/r/rehypothecation.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) 54 836 7639

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 in 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.