STOCK MARKET REVIEW

The Ghana Stock Exchange edged higher over the week, as gains in ten (10) counters offset losses recorded across eleven (11) stocks.

The GSE Composite Index (GSE-CI) grew by 257.41 points (+1.73%) for the week to close at 15,130.52 points, reflecting a year-to-date (YTD) gain of 72.52%.  

The GSE Financial Index (GSE-FI) declined by 1.63 points (-1.63%) for the week to close at 8,839.41 points, reflecting a year-to-date (YTD) gain of 90.21%. 

Market capitalization grew by 1.02% to close the week at GH¢281,835.29 million, from GH¢278,983.86 million at the close of the previous week. This reflects a YTD gain of 63.82%.

The week recorded a total of 11,505,467 shares, valued at GH¢86,539,966.13, compared with 13,553,818 shares valued at GH¢87,326,100.99 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 65.57% and 57.89% of the volume and value of shares traded, respectively.

The market closed the week with 10 growers and 11 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its depreciation streak against the USD for the week. It traded at GH¢11.1900/$, compared with GH¢11.0900/$ at week open, reflecting w/w and YTD depreciations of 0.89% and 6.61% respectively. This compares with an appreciation of 5.76% a year ago.

The Cedi also retracted against the GBP for the week. It traded at GH¢15.2000/£, compared with GH¢14.9865/£ at week open, reflecting w/w and YTD losses of 1.40% and 7.51% respectively. This compares with a depreciation of 0.35% a year ago.

The Cedi slipped against the Euro for the week. It traded at GH¢13.1289/€, compared with GH¢12.992/€ at week open, reflecting w/w and YTD depreciations of 1.04% and 6.52% respectively. This compares with a depreciation of 3.37% a year ago.                

The Cedi lost ground against the Canadian Dollar for the week. It opened at GH¢8.1083/C$ and closed at GH¢8.2240/C$, reflecting w/w and YTD losses of 1.41% and 7.33%, respectively. This compares with a appreciation of 1.32% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢4,437.79 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢3,897.10 million raised in the previous week.       

The 91-Day Bill settled at 4.92% p.a. from 4.92% p.a. last week, whilst the 182-Day Bill settled at 6.97% p.a. from 6.96% p.a. last week. The 364-Day Bill settled at 10.20% p.a. from 10.12% 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 surged as tensions escalated in the Middle East. Brent futures traded at US$108.17 a barrel, compared to US$105.33 at the week's open, reflecting w/w and YTD gains of 2.70% and 77.76% respectively.

Gold prices dipped, weighed down by a firmer dollar and elevated inflation expectations following a spike in oil prices on renewed tensions in the Middle East. Gold settled at US$4,644.50, from US$4,740.90 last week, reflecting w/w loss and YTD appreciation of 2.03% and 5.89% respectively.

The price of Cocoa showed moderate signs of growth for the week. Cocoa traded at US$3,431.00 per tonne on Friday, from US$3,280.00 last week, reflecting w/w gain and YTD loss of 4.81% and 40.71% respectively.

International Commodity Prices

Source: www.investing.com.

INVESTMENT TERM OF THE WEEK

J-Curve: It is a trendline that shows an initial loss immediately followed by a dramatic gain. In private equity investing, it is seen as an inevitable consequence of a company turnaround: a period of increased losses followed by an upward swing as the turnaround takes hold.

Source:

https://www.investopedia.com/terms/j/j-curve-effect.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.