STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the second straight week on the back of price dips by ten (10) counters.

The GSE Composite Index (GSE-CI) fell by 54.82 points (-0.38%) for the week to close at 14,299.32 points, reflecting a year-to-date (YTD) gain of 63.04%.  

The GSE Financial Index (GSE-FI), however, grew by 57.96 points (+0.74%) for the week to close at 7,911.44 points, reflecting a year-to-date (YTD) gain of 70.24%. 

Market capitalization grew marginally by 0.93% to close the week at GH¢265,378.21 million, from GH¢262,937.71 million at the close of the previous week. This reflects a YTD gain of 54.25%.

The week recorded a total of 10,984,499 shares, valued at GH¢90,685,057.56, compared with 17,530,068 shares, valued at GH¢112,662,808.11, traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 68.93% and 54.24% of the volume and value of shares traded, respectively.

The market closed the week with 6 gainers and 10 laggards 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¢11.8505/$, compared with GH¢11.7300/$ at week open, reflecting w/w and YTD depreciations of 1.02% and 11.82% respectively. This compares with an appreciation of 43.42% a year ago.              

The Cedi also declined against the GBP for the week. It traded at GH¢15.8258/£, compared with GH¢15.7997/£ at week open, reflecting w/w and YTD losses of 0.16% and 11.17 % respectively. This compares with an appreciation of 32.11% a year ago.

The Cedi edged higher against the Euro for the week. It traded at GH¢13.6630/€, compared with GH¢13.6949/€ at week open, reflecting w/w gain and YTD depreciation of 0.23% and 10.17% respectively. This compares with an appreciation of 29.67% a year ago.                

The Cedi inched up against the Canadian Dollar for the week. It opened at GH¢8.5075/C$ and closed at GH¢8.5025/C$, reflecting w/w gain and YTD loss of 0.06% and 10.37%, respectively. This compares with an appreciation of 36.04% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢5,831.86 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢4,866.46 million raised in the previous week.       

The 91-Day Bill settled at 5.01% p.a. from 4.99% p.a. last week, whilst the 182-Day Bill settled at 7.09 p.a. from 7.04% p.a. last week. The 364-Day Bill settled at 10.84% p.a. from 10.46% 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 settled higher as Iran and Israel said they had halted attacks on each other following an appeal from U.S. President Donald Trump. Brent futures traded at US$95.03 a barrel, compared to US$92.05 at the week's open, reflecting w/w and YTD gains of 3.24% and 56.17% respectively.

Gold prices were subdued, even as the dollar weakened slightly and oil prices pared gains after Iran and Israel halted attacks on each other. Gold settled at US$4,505.00, from US$4,593.00 last week, reflecting w/w loss and YTD appreciation of 1.92% and 2.71% respectively.

The price of Cocoa bolstered its growth for the week. Cocoa traded at US$3,965.00 per tonne on Friday, from US$3,923.00 last week, reflecting w/w gain and YTD loss of 1.07% and 34.62% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Pac-Man Defense: It involves a targeted firm in a hostile takeover situation trying to acquire the company that has made a takeover attempt. In an attempt to scare off the would-be acquirers, the takeover target may dip into its war chest for cash to buy a majority stake in the other company.

Source:

https://www.investopedia.com/terms/p/pac-man-defense.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.