STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) continued its dominant year-long run on the back of price gains by eleven (11) counters.

The GSE Composite Index (GSE-CI) grew by 165.53 points (+1.88%) for the week to close at 8,976.64 points, reflecting a year-to-date (YTD) gain of 2.35%.  

The GSE Financial Index (GSE-FI) also gained 204.83 points (+4.37%) for the week to close at 4,892.35 points, reflecting a year-to-date (YTD) gain of 5.28%. 

Market capitalization grew by 1.30% to close the week at GH¢178,530.09 million, from GH¢176,231.62 million at the close of the previous week. This reflects a YTD gain of 3.77%.

The week recorded a total of 33,346,517 shares, valued at GH¢151,299,081.80, compared with 44,196,397 shares valued at GH¢189,199,253.95 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 88.64% and 82.05% of the volume and value of shares traded, respectively.

The market closed the week with 11 growers and 1 laggard as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi further weakened against the USD for the week. It traded at GH¢10.8800/$, compared with GH¢10.8000/$ at week open, reflecting w/w and YTD depreciations of 0.74% and 3.95% respectively. This compares with a depreciation of 2.65% a year ago.      

The Cedi also fell against the GBP for the week. It traded at GH¢14.7751/£, compared with GH¢14.4639/£ at week open, reflecting w/w and YTD losses of 2.11% and 4.85% respectively. This compares with an appreciation of 2.38% a year ago.

The Cedi retreated against the Euro for the week. It traded at GH¢12.8022/€, compared with GH¢12.5392/€ at week open, reflecting w/w and YTD depreciations of 2.05% and 4.14% respectively. This compares with a depreciation of 4.14% a year ago. 

The Cedi declined against the Canadian Dollar for the week. It opened at GH¢7.7763/C$ and closed at GH¢7.9240/C$, reflecting w/w and YTD losses of 1.86% and 3.82%, respectively. This compares with a depreciation of 3.11% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢12,803.79 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢10,057.04 million raised in the previous week.       

The 91-Day Bill settled at 11.20% p.a. from 11.19% p.a. last week, whilst the 182-Day Bill settled at 12.67% p.a. from 12.65% p.a. last week. The 364-Day Bill settled at 13.07% p.a. from 12.98% 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 steadied higher, as investors weighed concerns about a potential supply glut against heightened geopolitical risks and awaited signals from a key Federal Reserve policy meeting later this month. Brent futures traded at US$65.07 a barrel, compared to US$64.13 at week's open, reflecting w/w and YTD appreciations of 1.47% and 6.94% respectively.

Gold bullion prices surged to a record high, driven by safe-haven demand amid geopolitical uncertainties and market volatility. Gold settled at US$4,979.70, from US$4,595.40 last week, reflecting w/w and YTD appreciations of 8.36% and 13.53% respectively.

The price of Cocoa decreased for the week. Cocoa traded at US$4,201.00 per tonne on Friday, from US$5,076.00 last week, reflecting w/w and YTD losses of 17.24% and 30.73% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Interest Rate Collar: It is a relatively low-cost interest rate risk management strategy. It uses options to protect an investor against interest rate fluctuations. The interest rate collar process involves selling a covered call and buying a protective put, which sets a cap and floor on interest rates. Investors might use an interest rate collar to minimize risk exposure, while investors might use a reverse interest rate collar (buying a floor and selling a cap) to protect themselves against falling interest rates.

Source:

https://www.investopedia.com/terms/i/interestratecollar.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.