STOCK MARKET REVIEW

The Ghana Stock Exchange dipped  for the  second consecutive week on the back of declines by 4 counters. The GSE Composite Index (GSE CI) lost 38.04 points (-1.37%) to close at  2,728.76 points, reflecting year-to-date (YTD) loss of 2.17%. The GSE Financial Stocks Index (GSE FI) also lost 4.01 points (-0.19%) to close at  2,127.91 points, reflecting year-to-date (YTD) loss of 1.11%.

Market capitalization declined by 0.60% to close the week at GH¢63,713.60 million, from GH¢64,097.80 million at the close of the previous week. This reflects YTD decrease of 1.21%.

Trading activity witnessed a total of 5,917,395 shares valued at GH¢6,461,373.44 changing hands compared with 5,497,427 shares, valued at GH¢5,927,272.53 in the preceding week.

CAL dominated  volume of trades for the week, accounting for 51.13% of volume traded whiles MTN dominated value of trades with 44.45% of total value of trades for the week.

The market closed the week with no price gainers and 4 price decliners as indicated on the table below.

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the third consecutive week. It traded at GH¢6.1077/$ on Friday, compared to GH¢6.0226/$ at week open, reflecting w/w and YTD depreciations of 1.39% and 1.66% respectively. This compares with YTD depreciation of 0.01% a year ago.

The Cedi also lost grounds against the GBP for the week. It traded at GH¢8.2628/£, compared with GH¢8.0715/£ at week open, reflecting w/w and YTD depreciations of 2.32% and 1.64% respectively. This compares with YTD depreciation of 0.39% a year ago.

The Cedi again retreated against the Euro for the week as it traded at GH¢6.9743/€, compared with GH¢6.7109/€ at week open, reflecting w/w and YTD depreciations of 3.78% and 2.10%  respectively. This compares with YTD appreciation of 2.04% a year ago.

The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢4.7177/C$ but closed at GH¢4.7847/C$, reflecting w/w and YTD depreciations of 1.40%  and 0.90%  respectively. This compares with YTD appreciation of 0.56% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,303.05 million for the week across the 91-Day and 182-Day Treasury bills, compared to GH¢1,218.28 million raised in the previous week.

The 91-Day bill gained 3bps to settle at 12.66% p.a whilst the 182-Day bill remained unchanged at 13.23% p.a.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices surged to seven-year highs on Friday, extending its rally into a seventh week on the back of ongoing worries about supply disruptions fueled by frigid U.S. weather and ongoing political turmoil among major world producers. Brent futures traded at US$93.27 a barrel on Friday, reflecting w/w and YTD gains of 3.60% and 19.92%.

Gold prices inched up on the back of a weakening dollar, alongside continuing concerns over high inflation, and U.S.-Russia tensions over Ukraine. Gold settled at  US$1,807.80 from US$1,784.90 last week, reflecting w/w  appreciation and YTD loss of 1.28% and 1.14% respectively.

Prices of Cocoa advanced for the week. The commodity traded at US$2,668.00 per tonne on Friday, from US$2,494.00 last week, reflecting  w/w and YTD appreciations of 6.98% and 5.87% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Appropriation:  Appropriation is the act of setting aside money for a specific purpose. In accounting, it refers to a breakdown of how a firm’s profits are divided up, or for the government, an account that shows the funds a government department has been credited with. A company or a government appropriates funds in order to delegate cash for the necessities of its business operations.

Source: https://www.investopedia.com/terms/a/appropriation-account.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

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.