STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines by 1 counter. The GSE Composite Index (GSE-CI) lost 0.33 points (-0.01%) to close the week at 3,125.72 points, reflecting a year-to-date (YTD) gain of 27.90%. The GSE Financial Stocks Index (GSE-FI) however gained 16.79 points (+0.86%) to close the week at 1,979.43 points, reflecting a YTD loss of 3.56%.

Market capitalization decreased by 0.005% to close the week at GH¢73,738.08 million, from GH¢73,741.66 million at the close of the previous week. This reflects a YTD gain of 14.31%.

The week recorded a total of 3,907,818 shares valued at GH¢5,438,458.55 changing hands, compared with 573,305 shares, valued at GH¢823,455.58 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 88.01% and 86.72% of shares traded respectively.

The market ended the week with 2 advancers and 1 decliner as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢11.4636/$, compared with GH¢11.4215/$ at week open, reflecting w/w and YTD depreciations of 0.37% and 25.19% respectively. This compares with a loss of 53.83% a year ago.            

The Cedi also declined against the GBP for the week. It traded at GH¢13.9266/£, compared with GH¢13.8651/£ at week open, reflecting w/w and YTD depreciations of 0.44% and 25.96% respectively. This compares with a depreciation of 46.06% a year ago.

The Cedi lost against the Euro for the week. It traded at GH¢12.1428/€, compared with GH¢12.0898/€ at week open, reflecting w/w and YTD depreciations of 0.44% and 24.68% respectively. This compares with a depreciation of 47.20% a year ago.            

The Cedi however gained against the Canadian Dollar at week end. It opened at GH¢8.3357/C$ but closed at GH¢8.2724/C$, reflecting w/w gain and YTD depreciations of 0.76% and 23.57% respectively. This compares with a depreciation of 50.37% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,509.93 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,896.51 million raised in the previous week.       

The 91-Day Bill settled at 29.82% p.a. from 29.73% p.a. last week whilst the 182-Day Bill settled at 31.68% p.a. from 31.60% p.a. last week. The 364-Day Bill settled at 33.42% p.a. from 33.34% 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 slipped as traders raced from one headline to another on the Middle East conflict between warring parties Israel and Hamas. Brent futures traded at US$89.20 a barrel, compared to US$92.16 at week open, reflecting w/w loss and YTD appreciation of 3.21% and 3.83% respectively.

Gold prices fell as easing concerns over the Israel-Hamas war sapped safe haven demand. Gold settled at US$1,989.00, from US$1,994.40 last week, reflecting w/w loss and YTD appreciations of 0.27% and 8.91% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$3,852.00 per tonne on Friday, from US$3,694.00 last week, reflecting w/w and YTD appreciations of 4.28% and 48.15% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Exchange-Traded Fund (ETF): An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.

Source: https://www.investopedia.com/terms/e/etf.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.