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 5.34 points (+0.17%) to close the week at 3,145.33 points, reflecting a year-to-date (YTD) gain of 28.70%. The GSE Financial Stocks Index (GSE-FI) also gained 9.20 points (+0.47%) to close the week at 1,953.13 points, reflecting a YTD loss of 4.85%.

Market capitalization increased by 0.08% to close the week at GH¢73,951.27 million, from GH¢73,893.22 million at the close of the previous week. This reflects a YTD gain of 14.64%.

The week recorded a total of 798,602 shares valued at GH¢1,613,437.62 changing hands, compared with 6,384,574 shares, valued at GH¢10,680,773.39 in the preceding week.

GCB dominated both volume and value of trades for the week, accounting for 36.38% and 63.03% of shares traded respectively.

The market ended the week with 4 advancers and 2 decliners as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢11.3114/$, compared with GH¢11.2287/$ at week open, reflecting w/w and YTD depreciations of 0.78% and 24.18% respectively. This compares with a loss of 43.96% a year ago.            

The Cedi on the other hand rallied against the GBP for the week. It traded at GH¢13.7326/£, compared with GH¢13.7406/£ at week open, reflecting w/w gain and YTD depreciation of 0.06% and 24.91% respectively. This compares with a depreciation of 32.27% a year ago.

The Cedi declined against the Euro for the week. It traded at GH¢11.8897/€, compared with GH¢11.8812/€ at week open, reflecting w/w and YTD depreciations of 0.07% and 23.08% respectively. This compares with a depreciation of 34.55% a year ago.          

The Cedi also declined against the Canadian Dollar at week end. It opened at GH¢8.2144/C$ but closed at GH¢8.2854/C$, reflecting w/w and YTD depreciations of 0.86% and 23.69% respectively. This compares with a depreciation of 38.67% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,610.27 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,576.60 million raised in the previous week.       

The 91-Day Bill settled at 29.48% p.a. from 29.19% p.a. last week whilst the 182-Day Bill settled at 31.43% p.a. from 31.22% p.a. last week. The 364-Day Bill settled at 33.21% p.a. from 33.02% 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 leapt over 6% as investors priced in the possibility that the conflict in the Middle East could widen as Israel began ground raids inside the Gaza Strip. Brent futures traded at US$90.89 a barrel, compared to US$84.58 at week open, reflecting w/w and YTD appreciations of 7.46% and 5.80% respectively.

Gold prices surged on the back of the escalation of the conflict in the Middle East between Israel and Hamas that has increased safe-haven demand for assets like gold. Gold settled at US$1,941.50, from US$1,845.20 last week, reflecting w/w loss and YTD gain of 5.22% and 6.31% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,499.00 per tonne on Friday, from US$3,453.00 last week, reflecting w/w and YTD appreciations of 1.33% and 34.58% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Transfer Pricing: Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided.

Transfer pricing allows for the establishment of prices for the goods and services exchanged between subsidiaries, affiliates, or commonly controlled companies that are part of the same larger enterprise. Transfer pricing can lead to tax savings for corporations, though tax authorities may contest their claims.

Source: https://www.investopedia.com/terms/t/transfer-pricing.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

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.