STOCK MARKET REVIEW

The Ghana Stock Exchange continued its bearish run as price declines in eleven (11) counters outpaced price gains in six (6) counters at week’s end.

The GSE Composite Index (GSE-CI) fell by 247.12 points (-1.70%) for the week to close at 14,320.45 points, reflecting a year-to-date (YTD) gain of 63.28%.  

The GSE Financial Index (GSE-FI) also dipped by 243.77 points (-2.93%) for the week to close at 8,068.95 points, reflecting a year-to-date (YTD) gain of 73.63%. 

Market capitalization declined by 1.52% to close the week at GH¢264,808.19 million, from GH¢268,907.04 million at the close of the previous week. This reflects a YTD gain of 53.92%.

The week recorded a total of 5,282,168 shares, valued at GH¢28,010,159.57, compared with 11,762,657 shares valued at GH¢66,207,231.16 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 50.13% and 61.83% of the volume and value of shares traded, respectively.

The market closed the week with 6 advancers and 11 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi extended its 2-month depreciation run against the USD for the week. It traded at GH¢11.4125/$, compared with GH¢11.2750/$ at week open, reflecting w/w and YTD depreciations of 1.20% and 8.43% respectively. This compares with an appreciation of 19.32% a year ago.              

The Cedi improved against the GBP for the week. It traded at GH¢15.2055/£, compared with GH¢15.3639/£ at week open, reflecting w/w gain and YTD loss of 1.04% and 7.55% respectively. This compares with an appreciation of 12.68% a year ago.

The Cedi rebounded against the Euro for the week. It traded at GH¢13.2695/€, compared with GH¢13.2774/€ at week open, reflecting w/w gain and YTD depreciation of 0.06% and 7.51% respectively. This compares with an appreciation of 10.87% a year ago.                

The Cedi depreciated marginally against the Canadian Dollar for the week. It opened at GH¢8.2391/C$ and closed at GH¢8.3031/C$, reflecting w/w and YTD losses of 0.77% and 8.21%, respectively. This compares with an appreciation of 15.97% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢5,475.14 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢6,087.04 million raised in the previous week.       

The 91-Day Bill settled at 4.92% p.a. from 4.88% p.a. last week, whilst the 182-Day Bill settled at 7.04 p.a. from 7.04% p.a. last week. The 364-Day Bill settled at 10.39% p.a. from 10.13% 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 sharply after President Donald Trump said he was postponing a planned military attack on Iran as “serious negotiations” were “now taking place”. Brent futures traded at US$109.26 a barrel, compared to US$101.29 at the week's open, reflecting w/w and YTD gains of 7.87% and 79.56% respectively.

Gold prices lost steam as the yellow metal remained under pressure from persistent uncertainty over rising interest rates and the inflationary impact of the Iran war. Gold settled at US$4,561.90, from US$4,730.70 last week, reflecting w/w loss and YTD appreciation of 3.57% and 4.00% respectively.

The price of Cocoa improved further for the week. Cocoa traded at US$4,002.00 per tonne on Friday, from US$4,182.00 last week, reflecting w/w and YTD losses of 4.30% and 34.01% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

 Present Value Interest Factor of Annuity (PVIFA): It is a calculation that can help an investor entering into an annuity contract to determine whether it is more advantageous to take a lump-sum payment or to accept a series of payments over time.

Source:

https://www.investopedia.com/terms/p/pvifa.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.