STOCK MARKET REVIEW

The Ghana Stock Exchange's recent recovery stalled during the week, as price declines across seven (7) counters weighed on overall market performance. The GSE Composite Index (GSE-CI) fell by 164.82 points (-1.14%) for the week to close at 14,354.14 points, reflecting a year-to-date (YTD) gain of 63.67%.  

The GSE Financial Index (GSE-FI) also fell by 27.74 points (-0.35%) for the week to close at 7,853.48 points, reflecting a year-to-date (YTD) gain of 68.99%. 

Market capitalization dipped by 0.50% to close the week at GH¢262,937.71 million, from GH¢264,268.45 million at the close of the previous week. This reflects a YTD gain of 52.83%.

The week recorded a total of 17,530,068 shares, valued at GH¢112,662,808.11, compared with 58,162,928 shares, valued at GH¢40,730,588.90, traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 92.58% and 93.85% of the volume and value of shares traded, respectively.

The market closed the week with 4 gainers and 7 laggards as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi extended its losing streak against the USD for the week. It traded at GH¢11.7300/$, compared with GH¢11.6250/$ at week open, reflecting w/w and YTD depreciations of 0.90% and 10.91% respectively. This compares with an appreciation of 43.00% a year ago.

The Cedi also declined against the GBP for the week. It traded at GH¢15.7997/£, compared with GH¢15.6223/£ at week open, reflecting w/w and YTD losses of 1.12% and 11.02% respectively. This compares with an appreciation of 32.83% a year ago.

The Cedi slid against the Euro for the week. It traded at GH¢13.6949/€, compared with GH¢13.4872/€ at week open, reflecting w/w and YTD depreciations of 1.52% and 10.38% respectively. This compares with an appreciation of 30.40% a year ago.

The Cedi depreciated against the Canadian Dollar for the week. It opened at GH¢8.4127/C$ and closed at GH¢8.5075/C$, reflecting w/w and YTD losses of 1.11% and 10.42%, respectively. This compares with an appreciation of 36.59% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢4,866.46 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢3,934.42 million raised in the previous week.       

The 91-Day Bill settled at 4.99% p.a. from 4.91% p.a. last week, whilst the 182-Day Bill settled at 7.04 p.a. from 7.04% p.a. last week. The 364-Day Bill settled at 10.46% p.a. from 10.37% p.a. last week.

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

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices trended lower as the market remained cautious about progress in U.S.-Iran peace talks. Brent futures traded at US$92.05 a barrel, compared to US$100.21 at the week's open, reflecting w/w loss and YTD gain of 8.14% and 51.27% respectively.

Gold prices rebounded from recent losses, rising nearly 1% as markets hedge bets over the status of U.S.-Iran negotiations. Gold settled at US$4,593.00, from US$4,556.40 last week, reflecting w/w and YTD appreciations of 0.80% and 4.71% respectively.

The price of Cocoa rebounded for the week. Cocoa traded at US$3,923.00 per tonne on Friday, from US$3,796.00 last week, reflecting w/w gain and YTD loss of 3.35% and 35.32% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Pac-Man Defense: It involves a targeted firm in a hostile takeover situation trying to acquire the company that has made a takeover attempt. In an attempt to scare off the would-be acquirers, the takeover target may dip into its war chest for cash to buy a majority stake in the other company.

Website: www.cidaninvestments.com

Disclaimer: The contents of this report have been prepared to provide you with general information only. Information provided in 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.