STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened  for the week on the back of gains posted by 5 counters. The GSE Composite Index (GSE CI) gained 36.12 points (+1.34%) to close at 2,730.59 points, reflecting year-to-date (YTD) loss of 2.11%. The GSE Financial Stocks Index (GSE FI) also gained 1.62 points (+0.08%) to close at 2,116.98 points, reflecting year-to-date (YTD) loss of 1.62%.

Market capitalization inched up by 0.60% to close the week at GH¢63,239.29 million, from GH¢62,861.21 million at the close of the previous week. This reflects YTD decrease of 1.95%.

Trading activity recorded a total of 43,849,420 shares valued at GH¢45,434,231.80 changing hands, compared with  8,224,838 shares, valued at GH¢2,952,720.30 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 90.13% and 93.94% respectively of total shares traded.  

The market ended the week with 5 price gainers and 1 price decliner as indicated on the table below.

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the Seventh consecutive week. It traded at GH¢7.0019/$ on Friday, compared to GH¢6.6004/$ at week open, reflecting w/w and YTD depreciations of 5.73% and 14.22% respectively. This compares with YTD appreciation of 0.40 a year ago.      

The Cedi also retreated against the GBP for the week. It traded at GH¢9.2527/£, compared with GH¢8.8311/£ at week open, reflecting w/w and YTD depreciations of 4.56%  and 12.16% respectively. This compares with YTD depreciation of 0.51% a year ago.

The Cedi again lost grounds against the Euro for the week as it traded at GH¢7.6405/€, compared with GH¢7.4179/€ at week open, reflecting w/w and YTD depreciations of 2.91%  and 10.63%  respectively. This compares with YTD appreciation of 3.54% a year ago.

The Cedi  further weakened against the Canadian Dollar for the week. It opened at GH¢5.1616/C$ but closed at GH¢5.4792/C$, reflecting w/w and YTD depreciations of 5.80%  and 13.46%  respectively. This compares with YTD appreciation of 0.23% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,229.47 million for the week across the 91-Day, 182-Day and  364-Day Treasury bills, compared to GH¢1,212.80 million raised in the previous week.

This week, the 91-Day Bill settled at  13.14%, from  13.03% last week whiles the  182-Day Bill settled at 13.37%, from 13.31% last week. The 364-Day Treasury Bill recorded no change and settled at 16.96%.

The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices surged on Friday, ending the week at multi-year highs as Russia's invasion of Ukraine intensified and oil buyers shunned barrels from the world's second-largest exporter of crude. Brent futures traded at US$118.11 a barrel on Friday, compared to US$97.93 at week open. This reflects w/w and YTD gains of 20.61% and 51.85% respectively.

Gold had its biggest weekly gain in almost two years, inching toward the long-eyed $2,000 an ounce target, as worsening Russian aggression in Ukraine raised geopolitical risks that boosted the yellow metal. Gold settled at US$1,966.60 from US$1,887.60 last week, reflecting w/w and YTD  appreciation of 4.19% and 7.55% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,582.00 per tonne on Friday, from US$2,576.00 last week, reflecting  w/w and YTD appreciation of 0.23% and 2.46% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Peter Principle:  The Peter Principle is a common occurrence among companies, whereby employees are promoted according to their current progress rather than for the skills and aptitude required for the roles they are being considered for..

Source: https://corporatefinanceinstitute.com/resources/careers/jobs/peter-principle/

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DisclaimerThe contents of this report have been prepared to provide you with general information only. Information provided on 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.