STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the fourth consecutive week on the back of price declines  by 4 counters. The GSE Composite Index (GSE CI) lost 28.09 points (-1.13%) to close at    2,460.12   points, reflecting year-to-date (YTD) loss of 11.80%. The GSE Financial Stocks Index (GSE FI), on the other hand,  gained 14.46 points (+0.70%) to close at  2,070.10 points, reflecting YTD loss of 3.80%.

Market capitalization declined  by 0.46% to close the week at GH¢63,985.81 million, from GH¢64,279.00  million at the close of the previous week. This reflects a YTD decrease of 0.79%.

Trading activity recorded a total of 32,024,328  shares valued at GH¢30,794,565.98 changing hands, compared with 953,819  shares, valued at GH¢1,460,375.70 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 95.63% and 87.53% of shares traded respectively.

The market ended the week with 4 decliners as indicated on the table below. `

CURRENCY MARKET

The Cedi depreciated against the USD for the week. It traded at GH¢9.6048/$, compared with GH¢9.5414/$ at week open, reflecting w/w and YTD depreciations of 0.66% and 37.47% respectively. This compares with YTD depreciation of 1.81% a year ago.        

The Cedi also weakened against the GBP for the week. It traded at GH¢10.7017/£, compared with GH¢10.4150/£ at week open, reflecting w/w and YTD depreciations of 2.68% and 24.06% respectively. This compares with YTD depreciation of 0.91% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢9.4147/€, compared with GH¢9.2721/€ at week open, reflecting w/w and YTD depreciations of 1.51% and 27.47% respectively. This compares with YTD appreciation of 3.85% a year ago.            

The Cedi meanwhile strengthened against the Canadian Dollar for the week. It opened at GH¢7.0265/C$ but closed at GH¢6.9969/C$, reflecting w/w gain and YTD depreciation of 0.42% and 32.23% respectively. This compares with YTD depreciation of 2.16% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢999.86 million for the week across the 91-Day ,182-Day and 364-Day Treasury Bills. This compared with GH¢1,192.42 million raised in the previous week.

The 91-Day Bill settled at 30.45% p.a from 30.18% p.a. last week whilst the 182-Day Bill settled at  31.57% p.a from 31.34% p.a. last week. The 364-Day Bill settled at 31.55% p.a. from 30.47% previously. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Oil prices closed marginally higher for the week as OPEC+ considers reducing output by more than 1 million barrels per day (bpd). Brent futures traded at US$85.14 a barrel on Friday, compared to US$85.03 at week open. This reflects w/w and YTD appreciations of 0.13% and 9.46% respectively.

Gold prices strengthened for the week as growing risks of an economic recession spurred some safe haven demand for the yellow metal. Gold settled at US$1,684.90, from US$1,655.60 last week, reflecting w/w gain and YTD  loss of 1.77% and 7.86% respectively.

Prices of Cocoa increased for the week. The commodity traded at US$2,354.00 per tonne on Friday, from US$2,247.00 last week, reflecting  w/w gain and YTD loss of 4.76% and 6.59% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Debt Reprofiling: It is a form of debt restructuring in which the time for repayment of the debt is extended while the interest rate and principal amount borrowed are not cut.

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.