STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 2 counters. The GSE Composite Index (GSE-CI) gained 24.00 points (+1.00%) to close the week at 2,390.43 points, reflecting a year-to-date (YTD) loss of 1.21%. The GSE Financial Stocks Index (GSE-FI) lost 0.31 points (-0.02%) to close the week at 1,983.51 points, reflecting a YTD loss of 3.37%.

Market capitalization increased by 0.39% to close the week at GH¢64,353.88 million, from GH¢64,103.45 million at the close of the previous week. This reflects a YTD depreciation of 0.24%.

Trading activity recorded a total of 1,191,644 shares valued at GH¢2,025,264.85 changing hands, compared with 1,913,758 shares, valued at GH¢4,251,659.57   in the preceding week.

GGBL  dominated both volume and value of trades for the week ,  accounting for 83.93% and 82.96% of shares traded respectively.

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

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢10.8039/$, compared with GH¢10.7993/$ at week open, reflecting w/w and YTD depreciations of 0.043% and 20.62% respectively. This compares with YTD loss of 6.49% a year ago.            

The Cedi meanwhile appreciated against the GBP for the week. It traded at GH¢12.9901/£, compared with GH¢13.0807/£ at week open, reflecting w/w gain and YTD depreciation of 0.70% and 20.62% respectively. This compares with YTD depreciation of 7.00% a year ago.

The Cedi again strengthened against the Euro for the week. It traded at GH¢11.5344/€, compared with GH¢11.5569/€ at week open, reflecting w/w gain and YTD depreciation of 0.19% and 20.71% respectively. This compares with YTD loss of 6.29% a year ago.            

The Cedi also strengthened against the Canadian Dollar for the week. It opened at GH¢8.0822/C$ but closed at GH¢8.0151/C$, reflecting w/w gain   and YTD depreciation of 0.84% and 21.12% respectively. This compares with YTD depreciation of 6.23% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,758.65 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢3,349.49 million raised in the previous week.

The 91-Day Bill settled at 35.67% p.a from 35.73% p.a. last week whilst the 182-Day Bill settled at  35.72% p.a from 35.84% p.a. last week.

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

 Source: Bank of Ghana

COMMODITY MARKET

Oil prices slumped for the week on concerns about future U.S. economic growth following signals that the Federal Reserve is set to continue raising interest rates for longer than previously expected. Brent futures traded at US$83.00 a barrel, compared to US$86.39 at week open, reflecting w/w  and YTD losses of 3.92% and 3.39% respectively.

Gold futures posted their third weekly loss while clinging to support at the mid-$1,800 level as bulls in the space tried to discern direction amid calls by Federal Reserve officials for sharper rate hikes as U.S. inflation proved stickier than thought. Gold settled at US$1,840.40, from US$1,862.80 last week, reflecting w/w loss  and YTD appreciation of 1.20% and 0.78% respectively.

The price of Cocoa recorded an increase for the week. Cocoa traded at US$2,722.00  per tonne on Friday, from US$2,564.00 last week, reflecting  w/w and YTD appreciations of 6.16% and 4.69% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Working Ratio: The working ratio measures a company's ability to recover operating costs from annual revenue. It is calculated by taking total annual expenses, excluding depreciation and debt-related expenses, and dividing it by the annual gross income.

Source: https://www.investopedia.com/terms/w/workingratio.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

Email:etannor@cidaninvestments.com

Tel:+233 (0) 20 881 8957

Name: Moses Nana Osei-Yeboah

Email:moyeboah@cidaninvestments.com

Tel:+233 (0) 24 499 0069

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

Haatso, North Legon – Accra

Tel: +233 (0) 26171 7001/ 26 300 3917

Fax: +233 (0)30 254 4351

Email: info@cidaninvestmens.com

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.