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 7.80 points (+0.25%) for the week to close at 3,185.57 points, reflecting a year-to-date (YTD) gain of 1.77%. The GSE Financial Stocks Index (GSE-FI) also gained 15.22 points (+0.80%) for the week to close at 3,177.76 points, reflecting a year-to-date (YTD) gain of 1.25%.

Market capitalization increased by 0.34% to close the week at GH¢74,758.17 million, from GH¢74,507.85 million at the close of the previous week. This reflects a YTD gain of 1.17%.

The week recorded a total of 7,914,042 shares valued at GH¢10,114,734.63 changing hands, compared with 3,848,641 shares, valued at GH¢2,854,141.12 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 80.94% and 88.66% of shares traded respectively.

The market ended the week with 2 advancers and 2 laggards as indicated in the table below.

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the week. It traded at GH¢12.2064/$, compared with GH¢12.1178/$ at week open, reflecting w/w and YTD depreciations of 0.73% and 2.67% respectively. This compares with a loss of 20.62% a year ago.            

The Cedi also retreated against the GBP for the week. It traded at GH¢15.3697/£, compared with GH¢15.2957/£ at week open, reflecting w/w and YTD losses of 0.48% and 1.54% respectively. This compares with a depreciation of 20.62% a year ago.

The Cedi depreciated against the Euro for the week. It traded at GH¢13.1500/€, compared with GH¢13.0638/€ at week open, reflecting w/w and YTD depreciations of 0.66% and 0.18% respectively. This compares with a depreciation of 20.71% a year ago.         

The Cedi also depreciated against the Canadian Dollar at week end. It opened at GH¢8.9946/C$ but closed at GH¢9.0586/C$, reflecting w/w and YTD losses of 0.71 % and 0.52% respectively. This compares with a depreciation of 21.12% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢5,671.81 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢6,846.22 million raised in the previous week.       

The 91-Day Bill settled at 27.89% p.a. from 28.00% p.a. last week whilst the 182-Day Bill settled at 30.39% p.a. from 30.44% p.a. last week. The 364-Day Bill settled at 30.90% p.a. from 31.00% 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 settled slightly higher, as lingering supply concerns from tensions in the Middle East were offset by signs of weakening demand. Brent futures traded at US$83.47 a barrel, compared to US$82.19 at week open, reflecting w/w and YTD appreciations of 1.56% and 8.35% respectively.

Gold prices fell below a key support level in Asian trade last week after a hotter-than-expected inflation reading for January spurred more fears that the Federal Reserve will keep rates higher for longer. Gold settled at US$2,024.10, from US$2,038.70 last week, reflecting w/w and YTD depreciations of 0.73% and 1.60% respectively.

The price of Cocoa went up for the week. Cocoa traded at US$5,706.00 per tonne on Friday, from US$5,888.00 last week, reflecting w/w loss and YTD appreciation of 3.09% and 35.99% respectively.

 International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

London Interbank Offered Rate (LIBOR): The London Interbank Offered Rate (LIBOR) was a benchmark interest rate at which major global banks lent to one another in the international interbank market for short-term loans. LIBOR served as a globally accepted key benchmark interest rate that indicated borrowing costs between banks

Source: https://www.investopedia.com/terms/l/libor.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@cidaninvestments.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 accuracy and completeness are not guarantee