STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price gains  by 5 counters. The GSE Composite Index (GSE CI) gained 32.51 points (+1.31%) to close at 2,508.99 points, reflecting year-to-date (YTD) loss of 10.05%. The GSE Financial Stocks Index (GSE FI) also gained 61.69 points (+3.06%) to close at 2,079.94 points, reflecting YTD loss of 3.34%.

Market capitalization inched up by 1.12% to close the week at GH¢64,487.10 million, from GH¢63,775.28 million at the close of the previous week. This reflects YTD decrease of 0.01%.

Trading activity recorded a total of 3,682,515 shares valued at GH¢4,953,397.14 changing hands, compared with 1,944,061 shares, valued at GH¢1,679,680.70 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 38.59% and 26.11% of total volume and value of shares traded respectively.

The market ended the week with 5 advancers  and 2 decliners as indicated on the table below. `

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the week. It traded at GH¢8.2335/$, compared with GH¢8.2255$ at week open, reflecting w/w and YTD depreciations of 0.10% and 27.05% respectively. This compares with YTD depreciation of 1.64% a year ago.        

The Cedi  appreciated against the GBP for the week. It traded at GH¢9.5365/£, compared with GH¢9.6897/£ at week open, reflecting w/w gain and YTD depreciation of 1.61% and 14.78% respectively. This compares with YTD depreciation of 3.04% a year ago.

The Cedi weakened against the Euro for the week. It traded at GH¢8.2563/€, compared with GH¢8.2280/€ at week open, reflecting w/w and YTD depreciations of 0.34% and 17.30% respectively. This compares with YTD appreciation of 1.49% a year ago.       

The Cedi gained marginally against the Canadian Dollar for the week. It opened at GH¢6.3259/C$ but closed at GH¢6.2903/C$, reflecting w/w gain  and  YTD depreciation of 0.57% and 24.62% respectively. This compares with YTD depreciation of 3.25% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,776.55 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,826.21 million raised in the previous week.

The 91-Day Bill settled at  29.05% p.a from 28.61% p.a. last week whilst the 182-Day Bill settled at  30.23% p.a from 29.94% p.a. last week. The 364-Day Treasury Bill settled at 30.02%, from 29.52% 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 tumbled by 6% for the week, as new COVID-19 lockdown measures in China added to worries that high inflation and interest rate hikes are denting fuel demand. Brent futures traded at US$93.02 a barrel on Friday, compared to US$99.01 at week open. This reflects w/w loss and YTD gain of 6.05% and 19.59% respectively.

Gold prices fell slightly, extending sharp declines from last week as strength in the dollar and growing uncertainty over hawkish U.S. monetary policy weighed on appetite for the yellow metal. Gold settled at US$1,722.60, from US$1,749.80 last week, reflecting w/w and YTD  losses of 1.55% and  5.80% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,430.00 per tonne on Friday, from US$2,414.00 last week, reflecting  w/w gain and YTD loss of 0.66% and 3.57% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Open-End Credit: Open-end credit is a preapproved loan between a financial institution and borrower that may be used repeatedly up to a certain limit and can subsequently be paid back prior to payments coming due.

Source:  https://www.investopedia.com/terms/o/openendcredit.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).

RESEARCH TEAM

Name: Ernest Tannor

Name: Moses Nana Osei-Yeboah

Email:moyeboah@cidaninvestments.com

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

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.