STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price declines by 2 counters. The GSE Composite Index (GSE CI) lost 5.27 points (-0.22%) to close at 2,444.16 points, reflecting a year-to-date (YTD) loss of 12.37%. The GSE Financial Stocks Index (GSE FI) also lost 8.87 points (-0.43%) closing the week at 2,053.05 points, reflecting YTD loss of 4.59%.

Market capitalization increased by 0.13% to close the week at GH¢64,493.15 million, from GH¢64,410.41 million at the close of the previous week. This reflects a YTD loss of 0.0032%.

Trading activity recorded a total of 15,843,047 shares valued at GH¢20,550,924.06 changing hands, compared with 11,421,165 shares, valued at GH¢20,584,257.98 in the preceding week.

MTN  dominated both volume and value of trades for the week, accounting for 83.05% and 56.34% of shares traded respectively.

The market ended the week with 1 advancer and 2 laggards as indicated on the table below. `

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢8.3030/$, compared with GH¢8.0012/$ at week open, reflecting w/w and YTD depreciations of 3.63% and 27.66% respectively. This compares with YTD depreciation of 3.63% a year ago.       

The Cedi similarly weakened against the GBP for the week. It traded at GH¢10.0263/£, compared with GH¢9.7331/£ at week open, reflecting w/w and YTD depreciations of 2.92% and 18.94% respectively. This compares with YTD depreciation of 1.84% a year ago.

The Cedi again lost some grounds against the Euro for the week. It traded at GH¢8.8225/€, compared with GH¢8.4887/€ at week open, reflecting w/w and YTD depreciations of 3.78% and 22.61% respectively. This compares with YTD appreciation of 4.48% a year ago.        

The Cedi also weakened against the Canadian Dollar for the week. It opened at GH¢5.8455/C$ but closed at GH¢6.1108/C$, reflecting w/w and YTD depreciations of 4.34% and 22.41% respectively. This compares with YTD depreciation of 3.11% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,015.85 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢3,671.28 million raised in the previous week.

The 91-Day Bill settled at 35.36% p.a from 34.96% p.a. last week whilst the 182-Day Bill settled at  35.90% p.a from 36.03% p.a. last week.

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

Source: Bank of Ghana

COMMODITY MARKET

Oil prices rose on expectations that Russia will cut its supply in the new year while a winter storm hits large parts of the United States. Brent futures traded at US$84.50 a barrel, compared to US$79.04 at week open, reflecting w/w and YTD appreciations of 6.91% and 8.64% respectively.

Gold prices rose as fears of a 2023 recession spurred some safe haven plays into the yellow metal, with focus now turning to key readings on U.S. economic growth and inflation. Gold settled at US$1,804.20, from US$1,800.20 last week, reflecting w/w gain  and YTD depreciation of 0.22% and 1.33% respectively.

The price of Cocoa recorded an increase for the week. The commodity traded at US$2,628.00  per tonne on Friday, from US$2,517.00 last week, reflecting  w/w and YTD appreciations of 4.41% and 4.29% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Net Financial Debt:  Net financial debt demonstrates a company’s overall financial situation. It is calculated by subtracting the total value of its cash and other liquid assets from the total of its short and long-term debt.

Source: https://www.menzies.co.uk/helping-you/business-recovery/debt-glossary/

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.