STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price gains by 3 counters.

 The GSE Composite Index (GSE-CI) gained 63.84 points (+1.95%) for the week to close at 3,341.88 points, reflecting a year-to-date (YTD) gain of 6.76%.

The GSE Financial Stocks Index (GSE-FI) also gained 5.60 points (+0.28%) for the week to close at 2,002.31 points, reflecting a year-to-date (YTD) gain of 5.30%.

Market capitalization increased by 0.98% to close the week at GH¢76,357.31 million, from GH¢75,615.69 million at the close of the previous week. This reflects a YTD gain of 3.33%.

The week recorded a total of 1,130,068 shares valued at GH¢1,645,316.99 changing hands, compared with 3,866,526 shares, valued at GH¢6,502,780.49 in the preceding week.

MTNGH dominated both volume and value of trades for the week, accounting for 86.27% and 86.56% of shares traded respectively.

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

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its weekly depreciation run against the USD for the week. It traded at GH¢12.5475/$, compared with GH¢12.5001/$ at week open, reflecting w/w and YTD depreciations of 0.38% and 5.32% respectively. This compares with a loss of 22.14% a year ago.             

The Cedi also declined against the GBP for the week. It traded at GH¢16.1236/£, compared with GH¢15.7731/£ at week open, reflecting w/w and YTD losses of 2.17% and 6.14% respectively. This compares with a depreciation of 22.68% a year ago.

The Cedi again retreated against the Euro for the week. It traded at GH¢13.7275/€, compared with GH¢13.5230/€ at week open, reflecting w/w and YTD depreciations of 1.49% and 4.38% respectively. This compares with a depreciation of 22.30% a year ago.         

The Cedi also depreciated against the Canadian Dollar at week end. It opened at GH¢9.2015/C$ but closed at GH¢9.3135/C$, reflecting w/w and YTD losses of 1.20% and 3.25% respectively. This compares with a depreciation of 20.98% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢4,830.77 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢4,940.25 million raised in the previous week.       

The 91-Day Bill settled at 26.75% p.a. from 27.00% p.a. last week whilst the 182-Day Bill settled at 29.25% p.a. from 29.50% p.a. last week. The 364-Day Bill settled at 29.85% p.a. from 30.10% 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 closed lower on  as markets remained wary of soft Chinese demand even as producer group OPEC+ extended supply cuts. Brent futures traded at US$82.08 a barrel, compared to US$83.55 at week open, reflecting w/w loss and YTD appreciation of 1.76% and 6.54% respectively.

Gold prices rose to a record high, buoyed chiefly by comments from Federal Reserve Chair Jerome Powell that the central bank will cut interest rates in 2024. Gold settled at US$2,185.50, from US$2,095.70 last week, reflecting w/w and YTD gains of 4.28% and 5.49% respectively.

The price of Cocoa again grew for the week. Cocoa traded at US$6,997.00 per tonne on Friday, from US$6,826.00 last week, reflecting w/w and YTD appreciations of 2.51% and 66.75% respectively.

 International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Enterprise Value (EV): Enterprise value (EV) measures a company's total value, often used as a more comprehensive alternative to market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt and any cash or cash equivalents on the company's balance sheet

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