STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 2 counters. The GSE Composite Index (GSE-CI) gained 13.09 points (+0.48%) to close the week at 2,758.42 points, reflecting a year-to-date (YTD) gain of 12.87%. The GSE Financial Stocks Index (GSE-FI) remained flat (0.00%)  for the week closing at 1,806.67 points, reflecting a YTD loss of 11.98%.

Market capitalization increased by 0.16% to close the week at GH¢67,955.22 million, from GH¢67,846.89 million at the close of the previous week. This reflects a YTD gain of 5.34%.

The week witnessed a total of 362,899 shares valued at GH¢698,869.13 changing hands, compared with 3,009,540 shares, valued at GH¢7,094,944.22 in the preceding week.

MTN  dominated both  volume and value  of trades for the week,  accounting for 66.52% and 43.52% of shares traded respectively.

The market ended the week with 2 advancers and 2 decliners as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi appreciated marginally against the USD  for the week. It traded at GH¢10.9300/$, compared with GH¢11.0137/$ at week open, reflecting w/w gain and YTD depreciation of 0.76% and 21.54% respectively. This compares with YTD loss of 15.55% a year ago.           

The Cedi also strengthened  against the GBP for the week. It traded at GH¢13.5964/£, compared with GH¢13.6218/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.19% and 24.16% respectively. This compares with YTD depreciation of 12.29% a year ago.

The Cedi again strenthened  against the Euro for the week. It traded at GH¢11.9434/€, compared with GH¢11.9657/€ at week open, reflecting w/w gain and YTD depreciation of 0.19% and 23.42% respectively. This compares with YTD loss of 11.71% a year ago.            

The Cedi similarly appreciated against the Canadian Dollar at week close. It opened at GH¢8.1407/C$ but closed at GH¢8.1153/C$, reflecting w/w gain and YTD loss of 0.31% and 22.10% respectively. This compares with YTD depreciation of 16.12% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,883.02 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,599.27 million raised in the previous week.

The 91-Day Bill settled at 19.69% p.a from 19.39% p.a. last week whilst the 182-Day Bill settled at  22.25% p.a from 21.86% p.a. last week. The 364-Day Bill settled at 26.96% p.a from 25.66% 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 signs of a growing rebound in Chinese travel demand pushed up hopes of increased crude consumption this year. Brent futures traded at US$85.12 a barrel, compared to US$79.77 at week open, reflecting w/w  gain and YTD loss of 6.71% and 0.92% respectively.

Gold prices rose slightly last week, as more signs of slowing economic growth fed into safe haven demand for the yellow metal. Gold settled at US$2,011.90, from US$1,969.00 last week, reflecting w/w  and YTD appreciations of 2.18% and 10.17% respectively.

The price of Cocoa posted a loss for the week. Cocoa traded at US$2,919.00  per tonne on Friday, from US$2,933.00 last week, reflecting  w/w loss and YTD gain of 0.48% and 12.27% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Fiscal Dominance: Fiscal dominance is the term used to describe a situation where a central bank lends to the government for fiscal purposes beyond any legal limits. Fiscal dominance compromises the ability of the central bank to rein in inflation.

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.