STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened marginally for the week on the back of gains  by 2 counters. The GSE Composite Index (GSE CI) gained 0.79 points (+0.03%) to close at 2,742.85 points, reflecting year-to-date (YTD) loss of 1.67%. The GSE Financial Stocks Index (GSE FI) also, gained 1.43 points (+0.07%) to close at 2,174.96 points, reflecting year-to-date (YTD) gain of 1.07%.

Market capitalization inched up marginally  by 0.01% to close the week at GH¢64,029.79 million, from GH¢64,021.57 million at the close of the previous week. This reflects YTD decrease of 0.72%.

Trading activity recorded a total of 83,028,224 shares valued at GH¢88,889,722.36 changing hands, compared with 70,271,365 shares, valued at GH¢78,490,246.30 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 98.80% and 97.82% of volume and value of shares traded respectively .  

The market ended the week with 2 advancers and no decliner as indicated on the table below.

CURRENCY MARKET

The Cedi recorded no  price change against the USD after declines in nine consecutive weeks. It traded at GH¢7.1120/$ on Friday, compared to GH¢7.1121/$ at week open, reflecting w/w appreciation and YTD depreciation of 0.00% and 15.55% respectively. This compares with YTD appreciation of 0.53% a year ago. 

The Cedi  however appreciated  against the GBP for the week. It traded at GH¢9.3217/£, compared with GH¢9.3827/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.65%  and 12.81% respectively. This compares with YTD depreciation of 0.58% a year ago.

The Cedi weakened against the Euro for the week. It traded at GH¢7.8515/€, compared with GH¢7.8134/€ at week open, reflecting w/w and YTD depreciations of 0.49% and 13.03%  respectively. This compares with YTD appreciation of 4.86% a year ago.      

The Cedi   lost grounds against the Canadian Dollar for the week. It opened at GH¢5.6837/C$ but closed at GH¢5.6864/C$, reflecting w/w and YTD depreciations of 0.05% and 16.62%  respectively. This compares with YTD depreciation of 0.63% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢463.65 million for the week across the 91-Day and 182-Day Treasury bills, compared to GH¢733.21 million raised in the previous week.

The 91-Day Bill settled at  14.85% p.a., from  14.14% p.a. last week whilst the  182-Day Bill settled at 15.46% p.a., from 14.51% p.a. last week.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil  prices settled lower on Friday as members of the International Energy Agency (IEA) agreed to join in the largest ever U.S. oil reserves release. Both Brent and U.S. crude benchmarks settled down around 13% in their biggest weekly falls in two years, after U.S. President Joe Biden announced the release on Thursday. Brent futures traded at US$104.39 a barrel on Friday, compared to US$120.65 at week open. This reflects w/w loss and YTD gains of 13.48% and 34.21% respectively.

Gold retreated on Friday and was set to post a weekly decline after robust U.S. jobs data drove the dollar higher and bolstered bets that the Federal Reserve would aggressively raise rates. Gold settled at US$1,919.10 from US$1,954.20 last week, reflecting w/w loss  and YTD  appreciation of 1.80% and 4.95% respectively.

Prices of Cocoa advanced for the week. The commodity traded at US$2,599.00 per tonne on Friday, from US$2,562.00  last week, reflecting  w/w and YTD appreciations of 1.44% and 3.13% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Translation Risk:  Translation risk is the exchange rate risk associated with companies that deal in foreign currencies and list foreign assets on their balance sheets. Companies that own assets in foreign countries, such as plant and equipment, must convert the value of those assets from the foreign currency to the home country's currency for accounting purposes.

Source: https://www.investopedia.com/terms/t/translationrisk.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).

Website: www.cidaninvestments.com

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.