STOCK MARKET REVIEW

The stock market closed stronger for the week with gains in four counters eclipsing a loss in a lone counter. The GSE Composite Index (GSE CI) advanced by 24.13 points (1.13%) to close at 2,162.05 points, compared to 2,137.91 points at the previous week’s close. This reduced the year-to-date (YTD) loss to 15.95%. The GSE Financial Stocks Index also advanced by 40.96 points (2.29%) to close the week at 1,829.75 points, representing YTD loss of 15.04%.

Market capitalization increased by 0.45% for the week from GH¢55,563.37 million at the close of the preceding week to GH¢55,811.46 million. This represents YTD decline of 8.71%.   

There was less activity on the market compared with the preceding week. A total of  753,875 shares, valued at GH¢762,661.11 changed hands for the week, compared with total volume and value of 5,087,757 and GH¢8,961,600.06 recorded in the preceding week respectively. Scancom Plc. (MTN) dominated volume and value of shares traded for the week. MTN accounted for 64.63% (487,206 shares) of total volume of shares traded and 44.68% (GH¢340,747.20) of total value of shares traded.

Access Bank Ghana PLC led the advancers with an 18.51% increase in price, closing at GH¢2.88 per share. Ghana Oil Company Limited meanwhile led the laggards with a 0.60% decrease in price. Its share price closed at GH¢1.66 per share from GH¢1.67 per share at week open. Twenty-eight (28) counters remained flat at the closing bell on Friday.

The graphs and table below highlight activity on the market during the week.

CURRENCY MARKET

The Cedi weakened against the USD in the holiday shortened week. It traded at GH¢5.5369/$ on Thursday, compared with GH¢5.5254/$ at week open, reflecting w/w and YTD depreciations of 0.21% and 12.95% respectively against the USD. This compares with YTD depreciation of 8.19% a year ago.

The Cedi also weakened against the Euro on the week. It traded at GH¢6.1443/€, compared with GH¢6.0785/€ at week open, reflecting w/w and YTD depreciations of 1.07% and 10.27% respectively against the Euro. This compares with YTD depreciation of 3.41% a year ago.

The Cedi again weakened against the GBP on the week. It traded at GH¢7.2755/£, compared with GH¢7.1322/£ at week open, reflecting w/w and YTD depreciations of 1.97% and 15.18% respectively against the GBP. This compares with YTD depreciation of 2.89% a year ago.

The Cedi further weakened against the CAD for the week. It opened at GH¢4.1540/C$ but closed at GH¢4.2015/C$, reflecting w/w and YTD depreciations of 1.13% and 15.84% respectively against the CAD. This compares with YTD depreciation of 1.89% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢1,552.11 million in the week under review across the 91-day and treasury bills and a 2-Year Treasury Note. This compared with GH¢728.15 million raised in the previous week.

The 91–day and 182-day Treasury bills added 1bp each to settle at 14.69% and 15.15% respectively. The 2-year Treasury Note meanwhile added 145bps to settle at 20.95%.

Please see below for more details.

Source: Bank of Ghana

COMMODITY MARKET

Gold prices closed weaker on the week weighed by a robust U.S. jobs data and improved consumer sentiments. Gold futures settled at US$1,465.10 per ounce on Friday, reflecting a week loss of 0.52% and YTD gain of 14.34%.

Oil prices picked up for the week buoyed by a strong U.S. economic data and OPEC and its allies’ decision to extend production cuts. Brent futures traded at US$64.39 a barrel on Friday, reflecting w/w and YTD gains of 3.14% and 19.68% respectively.

Prices of Cocoa tanked on Friday but posted gains on the week. Cocoa futures settled at US$2,615.00 per tonne on Friday, reflecting gains of 2.33% and 8.24% for the week and year respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Unissued Capital: Capital which a company is authorised to issue but has not issued as shares

Sourcewww.investorwords.com

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).

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.