STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price decreases by 3 counters. The GSE Composite Index (GSE-CI) lost 104.05 points (-3.51%) to close the week at 2,862.27 points, reflecting a year-to-date (YTD) gain of 17.12%. The GSE Financial Stocks Index (GSE-FI) lost 0.84 points (-0.05%) to close the week at 1,687.49 points, reflecting a YTD loss of 17.79%.

Market capitalization decreased by 1.57% to close the week at GH¢70,828.47 million, from GH¢71,959.69 million at the close of the previous week. This reflects a YTD gain of 9.80%.

The week recorded a total of 24,420,319 shares valued at GH¢1,453,951.29 changing hands, compared with 5,346,896 shares, valued at GH¢7,722,438.61 in the preceding week.

HORDS dominated both volume and value of trades for the week, accounting for 97.25% and 49.00% of shares traded respectively.

The market ended the week with 2 advancers and 3 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¢11.0028/$, compared with GH¢11.0009/$ at week open, reflecting w/w and YTD depreciations of 0.02% and 22.06% respectively. This compares with a loss of 18.67% a year ago.       

The Cedi also retreated against the GBP for the week. It traded at GH¢14.4341/£, compared with GH¢14.1191/£ at week open, reflecting w/w and YTD depreciations of 2.18% and 28.56% respectively. This compares with a depreciation of 7.20% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢12.3659/€, compared with GH¢12.0506/€ at week open, reflecting w/w and YTD depreciations of 2.55% and 26.04% respectively. This compares with a depreciation of 8.35% a year ago.      

The Cedi further weakened against the Canadian Dollar at week end. It opened at GH¢8.2776/C$ but closed at GH¢8.3480/C$, reflecting w/w and YTD depreciations of 0.84% and 24.27% respectively. This compares with a depreciation of 16.33% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,126.22 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,979.94 million raised in the previous week.

The 91-Day Bill settled at 24.69% p.a. from 24.39% p.a. last week whilst the 182-Day Bill settled at 26.41% p.a. from 26.03% p.a. last week.

The tables below highlight primary market activity at close of the week.

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices rose over 1% on the back of U.S. inflation data that suggested interest rates in the world's biggest economy were close to their peak. Brent futures traded at US$79.87 a barrel, compared to US$78.47 at week open, reflecting w/w gain and YTD depreciation of 1.78% and 7.03% respectively.

Gold prices climbed higher signalled by the Fed taking a less aggressive stance with tightening monetary policy to curb price growth, even if the central bank stayed on course with its rate hikes. Gold settled at US$1,964.40, from US$1,932.50 last week, reflecting w/w and YTD appreciations of 1.65% and 7.57% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,307.00 per tonne on Friday, from US$3,274.00 last week, reflecting w/w loss and YTD appreciation of 1.01% and 27.19% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Special Drawing Rights (SDR): The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.

The SDR is not a currency. It is a potential claim on the freely usable currencies of IMF members. As such, SDRs can provide a country with liquidity.

A basket of currencies defines the SDR: the US dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.

Source: https://www.imf.org/en/Topics/special-drawing-right

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

Name: Julian Sapara-Grant

Email: jsgrant@cidaninvestments.com

Tel:  +233 (0) 20 821 2079

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

House No. 261

Haatso, North Legon – Accra

Tel: +233 (0) 27 690 0011/ 55 989 9935

Fax : +233 (0)30 254 4351

Email : info@cidaninvestments.com

Website : www.cidaninvestments.com

Disclaimer: The 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.