STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened for the week on the back of gains  by 4 counters. The GSE Composite Index (GSE CI) gained 3.44 points (+0.13%) to close at  2,742.06 points, reflecting year-to-date (YTD) loss of 1.69%. The GSE Financial Stocks Index (GSE FI) also, gained 6.24 points (+0.29%) to close at 2,173.53 points, reflecting year-to-date (YTD) gain of 1.01%.

Market capitalization inched up by 0.06% to close the week at GH¢64,021.57 million, from GH¢63,985.35 million at the close of the previous week. This reflects YTD decrease of 0.73%.

Trading activity recorded a total of 70,271,365 shares valued at GH¢78,490,246.30 changing hands, compared with  18,582,177 shares, valued at GH¢24,300,166.61 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 96.53% and 91.61% of volume and value of shares traded respectively .  

The market ended the week with 4 advancers and 1 decliner as indicated on the table below.

CURRENCY MARKET

The Cedi appreciated marginally against the USD after declines in nine consecutive weeks. It traded at GH¢7.1121/$ on Friday, compared to GH¢7.1125 /$ at week open, reflecting w/w appreciation and YTD depreciation of 0.01% and 15.55% respectively. This compares with YTD appreciation of 0.58% a year ago.            

The Cedi  however depreciated  against the GBP for the week. It traded at GH¢9.3827/£, compared with GH¢9.3533/£ at week open, reflecting w/w  and YTD depreciations of 0.31%  and 13.38% respectively. This compares with YTD depreciation of 0.38% a year ago.

The Cedi strenghtened against the Euro for the week. It traded at GH¢7.8134/€, compared with GH¢7.8451/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.41% and 12.96%  respectively. This compares with YTD appreciation of 4.60% a year ago.

The Cedi   lost grounds against the Canadian Dollar for the week. It opened at GH¢5.6371/C$ but closed at GH¢5.6837/C$, reflecting w/w and YTD depreciations of 0.82% and 16.58%  respectively. This compares with YTD depreciation of 0.47% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢733.21 million for the week across the 91-Day, 182-Day  and 364-DayTreasury bills, compared to GH¢1,178.22 million raised in the previous week.

The 91-Day Bill settled at  14.14%, from  13.42% last week whiles the  182-Day Bill settled at 14.51%, from 13.61% last week. The 364-Day bill also settled at 17.10%.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices rose to over $120 a barrel on Friday, as traders reconciled the impact of a missile attack on an oil distribution facility in Saudi Arabia with a possible release of oil reserves by the United States. Brent futures traded at US$120.65 a barrel on Friday, compared to US$107.93 at week open. This reflects w/w and YTD gains of 11.79% and 55.12% respectively.

Gold prices inched up on Friday and for the week, on the back of geopolitical tensions fed by the war in Ukraine and inflation concerns. Gold settled at US$1,954.20 from US$1,929.30 last week, reflecting w/w  and YTD  appreciations of 1.29% and 6.87% respectively.

Prices of Cocoa advanced for the week. The commodity traded at US$2,562.00 per tonne on Friday, from US$2,537.00 last week, reflecting  w/w and YTD appreciations of 0.99% and 1.67% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Transaction Risk:  Transaction risk refers to the adverse effect that foreign exchange rate fluctuations can have on a completed transaction prior to settlement. It is the exchange rate, or currency risk associated specifically with the time delay between entering into a trade or contract and then settling it.

Source: https://www.investopedia.com/terms/t/transactionrisk.asp

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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.