STOCK MARKET REVIEW

The Ghana Stock Exchange extended its strong run for the fourth consecutive week as five (5) counters saw significant price movements last week.

The GSE Composite Index (GSE-CI) gained 98.99 points (+1.58%) for the week to close at 6,347.47 points, reflecting a year-to-date (YTD) gain of 29.84%.  

The GSE Financial Index (GSE-FI) rose by 29.33 points (+0.87%) for the week to close at 3,405.34 points, reflecting a year-to-date (YTD) gain of 43.03%. 

Market capitalization grew by 0.91% to close the week at GH¢138,549.16 million, from GH¢137,302.04 million at the close of the previous week. This reflects a YTD gain of 24.42%.

The week recorded a total of 255,383,294 shares, valued at GH¢1,299,967,891.42, compared with 5,785,849 shares valued at GH¢21,808,497.25 that were traded in the preceding week.

GGBL dominated both the volume and value of trades, accounting for 96.83% and 97.97% of the volume and value of shares traded, respectively.

The market ended the week strong with 5 gainers and 1 laggard as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi retreated marginally against the USD for the week. It traded at GH¢10.3200/$, compared with GH¢10.3100/$ at week open, reflecting w/w loss and YTD appreciation of 0.10% and 42.44% respectively. This compares with a depreciation of 19.02% a year ago.     

The Cedi edged higher against the GBP. It traded at GH¢14.0879/£, compared with GH¢14.1479/£ at week open, reflecting w/w and YTD gains of 0.43% and 30.61% respectively. This compares with a depreciation of 19.44% a year ago.

The Cedi tightened against the Euro for the week. It traded at GH¢12.1259/€, compared with GH¢12.0675/€ at week open, reflecting w/w loss and YTD appreciation of 0.48% and 25.47% respectively. This compares with a depreciation of 17.36% a year ago.     

The Cedi again slipped against the Canadian Dollar for the week. It opened at GH¢7.5476/C$ and closed at GH¢7.6079/C$, reflecting w/w depreciation and YTD gain of 0.79% and 34.21% respectively. This compares with a depreciation of 16.27% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢2,967.87 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢3,343.32 million raised in the previous week.       

The 91-Day Bill settled at 14.57% p.a. from 14.69% p.a. last week, whilst the 182-Day Bill settled at 15.02% p.a. from 15.25% p.a. last week. The 364-Day Bill settled at 15.17% p.a. from 15.66% 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 Iran suspended cooperation with the U.N. nuclear watchdog and the United States of America. Brent futures traded at US$68.80 a barrel, compared to US$67.77 at week open, reflecting w/w gain and YTD depreciation of 1.52% and 7.82% respectively.

Gold prices edged higher on the back of U.S. fiscal deficit worries and Washington’s impending tariff decision. Gold settled at US$3,342.90, from US$3,287.60 last week, reflecting w/w and YTD appreciations of 1.68% and 26.58% respectively.

The price of Cocoa grew for the week. Cocoa traded at US$8,101.00 per tonne on Friday, from US$8,921.00 last week, reflecting w/w and YTD losses of 9.19% and 29.83% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Unlevered Beta: Beta is a measure of market risk. Unlevered beta (or asset beta) measures the market risk of the company without the impact of debt. 'Unlevering' a beta removes the financial effects of leverage thus isolating the risk due solely to company assets. In other words, how much did the company's equity contribute to its risk profile

Source:

https://www.investopedia.com/terms/u/unleveredbeta.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.