STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) closed the week on a strong note, driven by price gains across fifteen (15) listed counters.

The GSE Composite Index (GSE-CI) advanced by 1,338.24 points (+9.38%) for the week to close at 15,611.32 points, reflecting a year-to-date (YTD) gain of 78.00%.  

The GSE Financial Index (GSE-FI) also surged by 1,193.69 points (+13.33%) for the week to close at 10,145.30 points, reflecting a year-to-date (YTD) gain of 118.31%. 

Market capitalization grew by 11.64% to close the week at GH¢292,581.19 million, from GH¢262,078.11 million at the close of the previous week. This reflects a YTD gain of 70.06%.

The week recorded a total of 35,115,578 shares, valued at GH¢131,850,095.56, compared with 29,021,912 shares valued at GH¢241,270,934.40 that were traded in the preceding week.

CAL dominated the volume of trades for the week, while MTNGH dominated the value of trades for the week, accounting for 61.32% and 36.41% of the volume and value of shares traded, respectively.

The market closed the week with 15 gainers and 6 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi slipped against the USD for the second consecutive week. It traded at GH¢10.8725/$, compared with GH¢10.7700/$ at week open, reflecting w/w and YTD depreciations of 0.94% and 3.89% respectively. This compares with a depreciation of 5.34% a year ago.              

The Cedi also slipped against the GBP for the week. It traded at GH¢14.3882/£, compared with GH¢14.3774/£ at week open, reflecting w/w and YTD losses of 0.07% and 2.30% respectively. This compares with a depreciation of 8.25% a year ago.

The Cedi advanced against the Euro for the week. It traded at GH¢12.4357/€, compared with GH¢12.5000/€ at week open, reflecting w/w gain and YTD depreciation of 0.52% and 1.31% respectively. This compares with a depreciation of 9.89% a year ago.                

The Cedi declined against the Canadian Dollar for the week. It opened at GH¢7.8975/C$ and closed at GH¢7.9130/C$, reflecting w/w and YTD losses of 0.20% and 3.69%, respectively. This compares with a depreciation of 5.46% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢7,991.21 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢6,137.99 million raised in the previous week.       

The 91-Day Bill settled at 4.71% p.a. from 4.83% p.a. last week, whilst the 182-Day Bill settled at 6.28% p.a. from 6.30% p.a. last week. The 364-Day Bill settled at 9.41% p.a. from 9.35% 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 rose as the U.S.-Israeli war on Iran continued to disrupt oil production and shipping in the Middle East, despite U.S. President Trump’s call for global efforts to secure the vital Strait of Hormuz. Brent futures traded at US$103.14 a barrel, compared to US$92.69 at week's open, reflecting w/w and YTD appreciations of 11.27% and 69.50% respectively.

Gold prices slipped, as its status as a safe-haven asset took a hit from concerns over an inflationary shock from spiking oil prices. Gold settled at US$5,158.70, from US$5,158.70 last week, reflecting w/w loss and YTD appreciation of 1.88% and 15.40% respectively.

The price of Cocoa rose further for the week. Cocoa traded at US$3,297.00 per tonne on Friday, from US$3,230.00 last week, reflecting w/w gain and YTD loss of 2.07% and 45.64% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Gamma Hedging: A trading strategy that seeks to maintain a constant delta in an options position, often delta-neutral, as the underlying asset's price changes. It is used to reduce the risk created when the underlying security makes strong up or down moves, particularly during the last days before expiration.

Source:

https://www.investopedia.com/terms/g/gamma-hedging.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.