STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 3 counters. The GSE Composite Index (GSE CI) gained 13.31 points (+0.54%) to close at 2,462.80 points, reflecting a year-to-date (YTD) loss of 11.71%. The GSE Financial Stocks Index (GSE FI) also gained 2.78 points (+0.13%) for the week to close at  2,074.41 points, reflecting YTD loss of 3.60%.

Market capitalization increased by 0.23% to close the week at GH¢64,842.21 million, from GH¢64,690.55 million at the close of the previous week. This reflects a YTD appreciation of 0.54%.

Trading activity recorded a total of 1,665,534 shares valued at GH¢30,434,719.53 changing hands, compared with 512,787 shares, valued at GH¢8,720,701.69 in the preceding week.

MTN  dominated volume of trades whiles New Gold dominated value of trades for the week, accounting for 87.55% and 95.29% of volume and value of shares traded respectively.

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

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi lost some grounds against the USD for the week. It traded at GH¢13.1056/$, compared with GH¢13.0759/$ at week open, reflecting w/w and YTD depreciations of 0.23% and 54.17% respectively. This compares with YTD depreciation of 2.56% a year ago.            

The Cedi  also lost grounds against the GBP for the week. It traded at GH¢15.6213/£, compared with GH¢15.4263/£ at week open, reflecting w/w and YTD depreciations of 1.25% and 47.97% respectively. This compares with YTD depreciation of 1.05% a year ago.

The Cedi again lost against the Euro for the week. It traded at GH¢13.5803/€, compared with GH¢13.5147/€ at week open, reflecting w/w and YTD depreciations of 0.48% and 49.72% respectively. This compares with YTD appreciation of 5.61% a year ago.        

The Cedi however strengthened against the Canadian Dollar for the week. It opened at GH¢9.8504/C$ but closed at GH¢9.7874/C$, reflecting w/w gain  and YTD depreciation of 0.64% and 51.55% respectively. This compares with YTD depreciation of 3.18% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,656.48 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,983.24 million raised in the previous week.

The 91-Day Bill settled at 35.20% p.a from 34.39% p.a. last week whilst the 182-Day Bill settled at  35.99% p.a from 35.50% p.a. last week.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices dropped by about 2% , logging a second weekly decline, due to concerns about weakened demand in China and further increases to U.S. interest rates. Brent futures traded at US$87.62 a barrel on Friday, compared to US$95.99 at week open, reflecting w/w loss and YTD gain of 8.72% and 12.65% respectively.

Gold prices fell from a key resistance level as the metal’s safe haven demand diminished on waning fears of an escalation in the Russia–Ukraine conflict. Gold settled at US$1,754.40, from US$1,769.40  last week, reflecting w/w and YTD losses of 0.85% and 4.06% respectively.

The price of Cocoa recorded a decrease for the week. The commodity traded at US$2,412.00  per tonne on Friday, from US$2,520.00 last week, reflecting  w/w   and YTD losses of 4.29% and 4.29% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Non-Operating Asset:  A non-operating asset is a class of assets that are not essential to the ongoing operations of a business but may still generate income or provide a return on investment (ROI). These assets are listed on a company's balance sheet along with its operating assets, and they may or may not be broken out separately.

Source: https://www.investopedia.com/terms/n/nonoperatingasset.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).

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.