STOCK MARKET REVIEW

The Ghana Stock Exchange dropped for the third consecutive week on the back of movements  by 3 counters. The GSE Composite Index (GSE CI) dropped 17.50 points (-0.61%) to close at 2,842.07 points, reflecting a year-to-date (YTD) gain of 46.38%. The GSE Financial Stocks Index (GSE FI) on the other hand  gained 10.87 points (+0.52%) to close at 2,089.21 points, reflecting a year-to-date (YTD) gain of 17.19%.

Market capitalization at the end of the week was GH¢64,219.71 million, representing a marginal decrease of 0.002%  from GH¢64,220.97 million at the close of the previous week. This reflects YTD increase of 18.11%.

Trading activity declined sharply for the week, relative to activity in the prior week. A total of  1,245,224 shares valued at GH¢1,340,496.07 changed hands for the week compared with  10,299,238 shares, valued at GH¢13,983,438.18 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 73.10% and 81.42% of total volume and value of  shares traded respectively.

The market closed the week with 1  price gainer and 2 decliners as indicated on the table below.

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the week. It traded at GH¢5.9182/$ on Friday, compared to GH¢5.9142/$ at week open, reflecting w/w and YTD depreciations of 0.07% and 2.67% respectively against the USD. This compares with YTD depreciation of 3.15% a year ago.

The Cedi however gained marginally against the GBP for the reporting week as it traded at GH¢7.8792/£, compared with GH¢7.8804/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.02% and 0.06% respectively against the GBP. This compares with YTD depreciation of 5.08% a year ago.

The Cedi lost grounds against the Euro for the week as it traded at GH¢6.7103/€, compared with GH¢6.6854/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.37% and 5.28% respectively against the Euro. This compares with YTD depreciation of 10.51% a year ago.

Against the CAD, the Cedi strengthened on the week as it opened at GH¢4.6246/C$ but closed at GH¢4.6208/C$, reflecting w/w appreciation and YTD depreciation of 0.08% and 1.98% respectively against the CAD. This compares with YTD depreciation of 4.30% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,758.85 billion for the week across the 91-Day and 182-Day Treasury Bills and 2-Year FXR Note, compared to GH¢1,190.37 million raised in the previous week.

The 91-Day Bill shed 2bps to close at 12.48% p.a compared to 12.50% p.a recorded last week. The  182-Day Bill also lost 1bp to settle at 13.16% p.a. from 13.17% p.a last week. The 2-Year FXR Note settled at 19.75%, losing.

The table and graph below highlight primary market yields at close of the week.

 Source: Bank of Ghana

COMMODITY MARKET

Oil prices fell  again on Friday as the new variant of Covid-19 continued to raise fears in the market of renewed global travel restrictions. The spread of the omicron variant has investors concerned about any potential hit to demand as the U.S. reported at least six states with cases. The commodity settled lower for the fifth straight week as Brent futures traded at US$69.88 a barrel on Friday, reflecting w/w loss and YTD gain of 3.91% and 34.90% respectively.

Gold prices settled at US$1,783.90 per ounce on Friday, reflecting w/w and YTD losses of 0.09% and 5.87% respectively. The yellow metal recorded a third consecutive weekly fall, weighed down by signs that the U.S. Federal Reserve will quicken the pace of asset tapering and hike interest rates earlier than expected to curb inflationary pressures.

Prices of Cocoa went up  as the commodity traded at US$2,435.00 per tonne on Friday, reflecting w/w appreciation and YTD losses of 4.06% and   6.45% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept.

An individual looking to sell will receive the bid price while one looking to buy will pay the ask price.

Source: https://www.investopedia.com/terms/b/bid-askspread.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).

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 guar