STOCK MARKET REVIEW

The Ghana Stock Exchange retreated for the week on the back of a decline in the price of 1 counter. The GSE Composite Index (GSE CI) lost 0.68 points (-0.03%) to close at 2,696.67 points, reflecting year-to-date (YTD) loss of 3.32%. The GSE Financial Stocks Index (GSE FI) also lost 1.23 points (-0.06%) to close at  2,219.66 points, reflecting year-to-date (YTD) gain of 3.15%.

Market capitalization declined marginally by 0.01% to close the week at GH¢64,040.47 million, from GH¢64,047.56 million at the close of the previous week. This reflects YTD decrease of 0.71%.

Trading activity registered a total of 10,980,196 shares valued at GH¢10,983,012.32 changing hands, compared with 2,065,583 shares, valued at GH¢1,737,529 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 98.57% and 98.54% of volume and value of shares traded respectively .  

The market ended the week with no leader and 1 laggard as indicated on the table below.

CURRENCY MARKET

The Cedi was flat against the USD for the week. It traded at GH¢7.1124/$, compared with GH¢7.1124/$ at week open, reflecting w/w and YTD depreciations of 0.00% and 15.55% respectively. This compares with YTD appreciation of 0.51% a year ago.         

The Cedi appreciated against the GBP for the week. It traded at GH¢9.1284/£, compared with GH¢9.2877/£ at week open, reflecting w/w appreciation  and YTD depreciation of 1.75%  and 10.97% respectively. This compares with YTD depreciation of 0.78% a year ago.

The Cedi also strengthened against  the Euro for the week. It traded at GH¢7.6674/€, compared with GH¢7.6790/€ at week open, reflecting w/w appreciation  and YTD depreciation of 0.15% and 10.95% respectively. This compares with YTD appreciation of 2.14% a year ago.         

The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢5.6380/C$ but closed at GH¢5.5915/C$, reflecting w/w appreciation and YTD depreciation of 0.83% and 15.20% respectively. This compares with YTD depreciation of 1.17% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢981.87 million for the week across the 91-Day,  182-Day and 364-Day Treasury Bills. This compared with GH¢777.59 million raised in the previous week.

The 91-Day Bill settled at 16.78% p.a., from  16.33% p.a. last week whilst the 182-Day Bill settled at 17.42% p.a., from 16.32% p.a. last week. The 364-Day Treasury Bill on the other hand settled at 19.67% p.a., from 18.85% p.a. recorded previously.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices slipped for the week, posting a weekly loss of nearly 3.12%, on the prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China hurting demand, even as the European Union considers a ban on Russian oil that would tighten supply. Brent futures traded at US$108.21 a barrel on Friday, compared to US$111.70 at week open. This reflects w/w loss and YTD gain of 3.12% and 39.12% respectively.

Gold prices fell 2% for the week and was set for its biggest weekly decline since mid-March as signs of faster policy tightening by the U.S. Federal Reserve lifted Treasury yields and the dollar. Gold settled at US$1,934.30 from US$1,974.90 last week, reflecting w/w loss and YTD  appreciation of 2.06% and 5.78% respectively.

Prices of Cocoa declined for the week. The commodity traded at US$2,506.00 per tonne on Friday, from US$2,583.00 last week, reflecting  w/w and YTD losses of 2.98% and 0.56% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Limit-on-Close (LOC) Order: An order to buy or sell stock at the closing price only if the price is at a predetermined level or better.

Source: https://www.nasdaq.com/glossary/l/limit-on-close-order

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.