STOCK MARKET REVIEW

The Ghana Stock Exchange rebounded after recent declines, supported by price gains across six (6) counters.

The GSE Composite Index (GSE-CI) inched up by 198.51 points (+1.39%) for the week to close at 14,518.96 points, reflecting a year-to-date (YTD) gain of 65.55%.  

The GSE Financial Index (GSE-FI) fell by 187.73 points (-2.33%) for the week to close at 7,881.22 points, reflecting a year-to-date (YTD) gain of 69.59%. 

Market capitalization dipped by 0.20% to close the week at GH¢264,268.45 million, from GH¢264,808.19 million at the close of the previous week. This reflects a YTD gain of 53.61%.

The week recorded a total of 58,162,928 shares, valued at GH¢40,730,588.90, compared with 5,282,168 shares, valued at GH¢28,010,159.57, traded in the preceding week.

ILL dominated the volume value of trades for the week, while MTNGH dominated the value of trades for the week, accounting for 88.54% and 54.75% 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 losing streak against the USD for the week. It traded at GH¢11.6250/$, compared with GH¢11.4125/$ at week open, reflecting w/w and YTD depreciations of 1.83% and 10.11% respectively. This compares with an appreciation of 34.25% a year ago.

The Cedi also declined against the GBP for the week. It traded at GH¢15.6223/£, compared with GH¢15.2055/£ at week open, reflecting w/w and YTD losses of 2.67% and 10.01% respectively. This compares with an appreciation of 24.51% a year ago.

The Cedi slid against the Euro for the week. It traded at GH¢13.4872/€, compared with GH¢13.2695/€ at week open, reflecting w/w and YTD depreciations of 1.61% and 9.00% respectively. This compares with an appreciation of 22.58% a year ago.

The Cedi depreciated marginally against the Canadian Dollar for the week. It opened at GH¢8.3031/C$ and closed at GH¢8.4127/C$, reflecting w/w and YTD losses of 1.30% and 9.41%, respectively. This compares with an appreciation of 28.30% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,934.42 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢5,475.14 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 7.04 p.a. from 7.04% p.a. last week. The 364-Day Bill settled at 10.37% p.a. from 10.39% 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 optimism grew that the United States and Iran were moving closer to a peace deal that would reopen the Strait of Hormuz. Brent futures traded at US$100.21 a barrel, compared to US$109.26 at the week's open, reflecting w/w loss and YTD gain of 8.28% and 64.68% respectively.

Gold prices slipped as signs of progress in peace talks between the U.S. and Iran were outweighed by elevated interest rate hike expectations. Gold settled at US$4,556.40, from US$4,561.90 last week, reflecting w/w loss and YTD appreciation of 0.12% and 3.88% respectively.

The price of Cocoa declined further for the week. Cocoa traded at US$3,796.00 per tonne on Friday, from US$4,002.00 last week, reflecting w/w and YTD losses of 5.15% and 37.41% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Half Stock: It is a security sold with a par value that is 50% of what is considered to be the standard price. The par value refers to the face value of a bond, or in some cases, a stock. Half stock can be either common stock or preferred stock and, other than the reduced par value, acts as a regular share of stock.

Source:

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