STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 3 counters. The GSE Composite Index (GSE-CI) gained 8.75 points (+0.33%) to close the week at 2,646.29 points, reflecting a year-to-date (YTD) gain of 8.28%. The GSE Financial Stocks Index (GSE-FI) also gained 15.84 points (+0.95%) to close the week at 1,691.02 points, reflecting a YTD loss of 17.62%.

Market capitalization increased by 0.19% to close the week at GH¢67,327.45 million, from GH¢67,199.01 million at the close of the previous week. This reflects a YTD gain of 4.37%.

The week recorded a total of 1,272,253 shares valued at GH¢4,230,312.69 changing hands, compared with 397,863 shares, valued at GH¢741,051.88 in the preceding week.

GCB dominated both volume and value of trades for the week, accounting for 80.60% and 77.54% of shares traded respectively.

The market ended the week with 3 advancers as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢10.9898/$, compared with GH¢10.9767/$ at week open, reflecting w/w and YTD depreciations of 0.12% and 21.96% respectively. This compares with a loss of 16.62% a year ago.         

The Cedi also weakened against the GBP for the week. It traded at GH¢14.0840/£, compared with GH¢13.8038/£ at week open, reflecting w/w and YTD depreciations of 1.99% and 26.78% respectively. This compares with a depreciation of 7.46% a year ago.

The Cedi again weakened marginally against the Euro for the week. It traded at GH¢12.0074/€, compared with GH¢11.7996/€ at week open, reflecting w/w and YTD depreciations of 1.73% and 23.83% respectively. This compares with a depreciation of 9.43% a year ago.            

The Cedi further weakened against the Canadian Dollar at week end. It opened at GH¢8.2259/C$ but closed at GH¢8.3268/C$, reflecting w/w and YTD depreciations of 1.21% and 24.07% respectively. This compares with a depreciation of 14.14% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,015.74 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,801.02 million raised in the previous week.

The 91-Day Bill settled at 21.69% p.a. from 21.27% p.a. last week whilst the 182-Day Bill settled at 24.97% p.a. from 23.95% p.a. last week. The 364-Day Bill settled at 28.91% p.a. from 27.82% 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

Crude prices closed higher, helped by higher refinery demand and a rate cut in China, the world’s number one destination for oil. Brent futures traded at US$76.14 a barrel, compared to US$74.79 at week open, reflecting w/w gain and YTD depreciation of 1.81% and 11.37% respectively.

Gold prices fell after the Fed kept rates steady but warned that it will likely hike at least two more times this year. Gold settled at US$1,971.20, from US$1,977.20 last week, reflecting w/w loss and YTD appreciation of 0.30% and 7.94% respectively.

The price of Cocoa increased marginally for the week. Cocoa traded at US$3,188.00 per tonne on Friday, from US$3,180.00 last week, reflecting w/w and YTD appreciations of 0.25% and 22.62% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Loan Shark: A loan shark is a person who – or an entity that – loans money at extremely high interest rates and often uses threats of violence to collect debts. The interest rates are generally well above an established legal rate, and often loan sharks are members of organized crime groups.

Source: https://www.investopedia.com/terms/l/loansharking.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

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@cidaninvestmens.com

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