STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the second consecutive week on the back of price declines  by 3 counters. The GSE Composite Index (GSE CI) lost 56.56 points (-2.23%) to close at  2,476.48 points, reflecting year-to-date (YTD) loss of 11.22%. The GSE Financial Stocks Index (GSE FI) also lost 17.13 points (-0.84%) to close at  2,018.25 points, reflecting YTD loss of 6.21%.

Market capitalization dipped by 0.90% to close the week at GH¢63,775.28 million, from GH¢64,351.56 million at the close of the previous week. This reflects YTD decrease of 1.12%.

Trading activity recorded a total of 1,944,061 shares valued at GH¢1,679,680.70 changing hands, compared with  843,097 shares, valued at GH¢42,192,323.65 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 49.53% and 52.20% of total value and volume of shares traded respectively.

The market ended the week with no advancers  and 3 decliners as indicated on the table below. `

CURRENCY MARKET

The Cedi continued to depreciate against the USD for the week. It traded at GH¢8.2255/$, compared with GH¢8.1491$ at week open, reflecting w/w and YTD depreciations of 0.93% and 26.98% respectively. This compares with YTD depreciation of 1.26% a year ago.             

The Cedi  also depreciated against the GBP for the week. It traded at GH¢9.6897/£, compared with GH¢9.6253/£ at week open, reflecting w/w and YTD depreciations of 0.66% and 16.13% respectively. This compares with YTD depreciation of 2.12% a year ago.

The Cedi again depreciated against the Euro for the week. It traded at GH¢8.2280/€, compared with GH¢8.1831/€ at week open, reflecting w/w and YTD depreciations of 0.55% and 17.01% respectively. This compares with YTD appreciation of 2.40% a year ago.            

The Cedi further weakened against the Canadian Dollar for the week. It opened at GH¢6.2734/C$ but closed at GH¢6.3259/C$, reflecting w/w  and  YTD depreciations of 0.83% and 25.04% respectively. This compares with YTD depreciation of 2.18% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,826.21 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,097.20 million raised in the previous week.

The 91-Day Bill settled at 28.61% p.a from 27.72% p.a. last week whilst the 182-Day Bill settled at 29.94% p.a from 29.29% p.a. last week. The 364-Day Treasury Bill settled at 29.52%, from 28.83 at last issue. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices inched higher on Monday as hopes of a supply cut by OPEC offset heightened concerns over an economic slowdown forecast by the U.S. Federal Reserve. Brent futures traded at US$99.01 a barrel on Friday, compared to US$96.72 at week open. This reflects w/w and YTD gains of 2.37% and 27.29% respectively.

Gold prices fell as the dollar held on to gains following the U.S. Federal Reserve’s signal to raise interest rates further to tame sky-high inflation. Gold settled at US$1,749.80, from US$1,828.60 last week, reflecting w/w and YTD  losses of 0.74% and  4.31% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,414.00 per tonne on Friday, from US$2,362.00 last week, reflecting  w/w gain and YTD loss of 2.20% and 4.21% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Roadshow: A roadshow is a series of presentations made in various locations leading up to an initial public offering (IPO). The roadshow is a sales pitch or promotion made by the underwriting firm and a company's management team to potential investors before going public. Roadshows generally take place in major cities and are meant to drum up interest in the upcoming offer. Potential investors are introduced to the company, its history, and its key personnel.

Source: https://www.investopedia.com/terms/r/roadshow.asp   

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CORPORATE INFORMATION

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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.