STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher as twelve (12) counters recorded better-than-expected price gains for the week.

The GSE Composite Index (GSE-CI) grew by 875.12 points (+6.66%) for the week to close at 14,024.22 points, reflecting a year-to-date (YTD) gain of 59.91%.  

The GSE Financial Index (GSE-FI) also rose by 367.68 points (+4.63%) for the week to close at 8,314.05 points, reflecting a year-to-date (YTD) gain of 78.91%. 

Market capitalization also increased by 7.56% to close the week at GH¢266,447.66 million, from GH¢247,726.23 million at the close of the previous week. This reflects a YTD gain of 54.87%.

The week recorded a total of 12,704,860 shares, valued at GH¢62,320,423.24, compared with 8,657,932 shares valued at GH¢54,710,764.39 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 52.21% and 45.31% of the volume and value of shares traded, respectively.

The market closed the week with 12 growers and 7 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi slid against the USD for the week. It traded at GH¢11.0500/$, compared with GH¢11.0300/$ at week open, reflecting w/w and YTD depreciations of 0.18% and 5.43% respectively. This compares with a depreciation of 4.92% a year ago.              

The Cedi also retracted against the GBP for the week. It traded at GH¢14.9811/£, compared with GH¢14.8448/£ at week open, reflecting w/w and YTD losses of 0.91% and 6.16% respectively. This compares with a depreciation of 10.18% a year ago.

The Cedi weakened against the Euro for the week. It traded at GH¢13.0435/€, compared with GH¢12.9310/€ at week open, reflecting w/w and YTD depreciations of 0.86% and 5.91% respectively. This compares with a depreciation of 13.42% a year ago.

 The Cedi depreciated marginally against the Canadian Dollar for the week. It opened at GH¢7.9729/C$ and closed at GH¢8.0854/C$, reflecting w/w and YTD losses of 1.39% and 5.74%, respectively. This compares with a depreciation of 8.45% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢4,090.30 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢5,113.44 million raised in the previous week.       

The 91-Day Bill settled at 4.95% p.a. from 4.91% p.a. last week, whilst the 182-Day Bill settled at 6.91% p.a. from 6.78% p.a. last week. The 364-Day Bill settled at 10.13% p.a. from 9.98% 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 fell as markets parsed mixed signals from fresh U.S.-Iran talks ahead of the expiry of a temporary ceasefire. Brent futures traded at US$90.38 a barrel, compared to US$95.20 at the week's open, reflecting w/w loss and YTD gain of 5.06% and 48.53% respectively.

Gold prices inched higher as some traders remained skeptical of the US and Iran’s ability to reach a deal, following mixed signals from the negotiating parties. Gold settled at US$4,787.40, from US$4,787.40 last week, reflecting w/w and YTD appreciations of 1.93% and 11.25% respectively.

The price of Cocoa declined for the week. Cocoa traded at US$3,280.00 per tonne on Friday, from US$3,327.00 last week, reflecting w/w and YTD losses of 1.41% and 45.92% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Holding Company Depository Receipt (HOLDR): It is a security that allows investors to buy and sell a basket of stocks in a single transaction. Like exchange-traded funds (ETFs), HOLDRs allowed investors to trade stocks in a specific industry, sector, or group. ETFs, however, provide a more efficient and flexible structure for investors and issuers.

As a result, HOLDR securities were discontinued and some converted into ETFs by the end of the year 2011.

Source:

https://www.investopedia.com/terms/h/holdr.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.