STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the second consecutive week on the back of price declines by 3 counters. The GSE Composite Index (GSE CI)  lost 74.41 points (-2.93%) to close at   2,464.13 points, reflecting year-to-date (YTD) loss of 11.66%. The GSE Financial Stocks Index (GSE FI) on the other hand remained flat to close at   2,163.03 points, reflecting year-to-date (YTD) gain of 0.52%.

Market capitalization dropped by 1.33% to close the week at GH¢63,748.50 million, from GH¢64,609.70   million at the close of the previous week. This reflects YTD decrease of 1.16%.

Trading activity recorded a total of 60,044,310 shares valued at GH¢54,548,444.78 changing hands, compared with 1,870,896 shares, valued at GH¢1,822,836.80 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting, for 99.68% and 91.89% of volume and value of shares traded respectively.  

The market ended the week with no advancer  and 3 laggards as indicated on the table below. `

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the week. It traded at GH¢7.3845/$, compared with GH¢7.3045/$ at week open, reflecting w/w and YTD depreciations of 1.08% and 18.67% respectively. This compares with YTD depreciation of 0.63% a year ago.        

The Cedi  however strenghtened against the GBP for the week. It traded at GH¢8.7577/£, compared with GH¢8.7946/£ at week open, reflecting w/w gain and YTD loss of 0.42% and 7.20% respectively. This compares with YTD depreciation of 1.47% a year ago.

The Cedi lost grounds to the Euro for the week. It traded at GH¢7.4499/€, compared with GH¢7.4421/€ at week open, reflecting w/w and YTD depreciation of 0.10% and 8.35% respectively. This compares with YTD appreciation of 3.18% a year ago.         

The Cedi also weakened against the Canadian Dollar for the week. It opened at GH¢5.6454/C$ but closed at GH¢5.6671/C$, reflecting w/w and  YTD depreciations of 0.38% and 16.33% respectively. This compares with YTD depreciation of 1.66% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,150.89  million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,321.84     million raised in the previous week.

The 91-Day Bill settled at  25.96% p.a from  25.89% p.a. last week whilst the 182-Day Bill settled at 27.46% p.a from 26.55% 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 declined for the week on the back of fears that further hefty interest rate hikes, primarily by the Federal Reserve, will severely hit global economic growth and thus oil demand. Brent futures traded at US$99.63 a barrel on Friday, compared to US$107.02 at week open. This reflects a w/w loss and YTD gain of 6.91% and 28.09% respectively.

Gold prices fell with expectations growing that the U.S. Federal Reserve could hike interest rates more aggressively this month to fight red-hot inflation. Gold settled at US$1,699.75, from US$1,742.30 last week, reflecting w/w and YTD  losses of 2.44% and  7.05% respectively.

Prices of Cocoa also dropped for the week. The commodity traded at US$2,267.00 per tonne on Friday, from US$2,269.00 last week, reflecting  w/w and YTD losses of 0.09% and 10.04% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Shell Bank: Shell bank means a bank that has no physical presence in the country in which it is incorporated and licensed, and which is unaffiliated with a regulated financial group that is subject to effective consolidated supervision.

Source: https://www.fatf-gafi.org/glossary/s-t/

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.