STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) recorded modest gains at the close of the week, with advances in seven counters outweighing declines observed in ten counters.

The GSE Composite Index (GSE-CI) rose by 80.37 points (+0.51%) for the week to close at 15,691.69 points, reflecting a year-to-date (YTD) gain of 78.92%.  

The GSE Financial Index (GSE-FI) also surged by 301.07 points (-2.97%) for the week to close at 9,844.23 points, reflecting a year-to-date (YTD) gain of 111.83%. 

Market capitalization inched up by 0.30% to close the week at GH¢293,463.36 million, from GH¢292,581.19 million at the close of the previous week. This reflects a YTD gain of 70.58%.

The week recorded a total of 45,905,243 shares, valued at GH¢283,652,715.30, compared with 35,115,578 shares valued at GH¢131,850,095.56 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 88.83% and 93.61% of the volume and value of shares traded, respectively.

The market closed the week with 7 gainers and 10 laggards as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi slipped against the USD for the second consecutive week. It traded at GH¢10.9400/$, compared with GH¢10.8725/$ at week open, reflecting w/w and YTD depreciations of 0.62% and 4.48% respectively. This compares with a depreciation of 5.34% a year ago.

The Cedi also weakened against the GBP for the week. It traded at GH¢14.6197/£, compared with GH¢14.3882/£ at week open, reflecting w/w and YTD losses of 1.58% and 3.84% respectively. This compares with a depreciation of 8.37% a year ago.

The Cedi depreciated against the Euro for the week. It traded at GH¢12.6130/€, compared with GH¢12.4357/€ at week open, reflecting w/w and YTD depreciations of 1.41% and 2.70% respectively. This compares with a depreciation of 9.50% a year ago.                

The Cedi also depreciated marginally against the Canadian Dollar for the week. It opened at GH¢7.9130/C$ and closed at GH¢7.9759/C$, reflecting w/w and YTD losses of 0.79% and 4.45%, respectively. This compares with a depreciation of 5.64% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,265.74 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢7,991.21 million raised in the previous week.       

The 91-Day Bill settled at 4.78% p.a. from 4.71% p.a. last week, whilst the 182-Day Bill settled at 6.36% p.a. from 6.28% p.a. last week. The 364-Day Bill settled at 9.58% p.a. from 9.41% 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 rose as the world’s biggest supply disruption persisted and as Iran denied it had talks with the U.S. to end the war in the Gulf. Brent futures traded at US$103.14 a barrel, compared to US$103.14 at week's open, reflecting w/w and YTD appreciations of 3.17% and 74.87% respectively.

Gold prices extended losses for the second straight week as Iran denied holding talks with the U.S. after President Donald Trump’s decision to postpone further strikes on Iran’s energy infrastructure. Gold settled at US$4,609.60, from US$5,061.70 last week, reflecting w/w loss and YTD appreciation of 8.93% and 5.09% respectively.

The price of Cocoa rose further for the week. Cocoa traded at US$3,255.00 per tonne on Friday, from US$3,205.00 last week, reflecting w/w gain and YTD loss of 1.56% and 46.33% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

TED Spread: It measures the difference between the interest rate on short-term U.S. government debt and the rate on interbank loans, specifically contrasting the three-month U.S. Treasury bill with the three-month LIBOR. This metric is crucial for gauging credit risk because U.S. Treasury bills are deemed a safe investment, unlike interbank loans which can represent higher risk.

Source:

https://www.investopedia.com/terms/t/tedspread.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.