STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 6 counters. The GSE Composite Index (GSE-CI) gained 52.73 points (+1.97%) to close the week at 2,735.58 points, reflecting a year-to-date (YTD) gain of 11.93%. The GSE Financial Stocks Index (GSE-FI) lost 41.45 points (-2.31%) to close the week at 1,756.32 points, reflecting a YTD loss of 14.43%.

Market capitalization increased by 1.56% to close the week at GH¢68,217.16 million, from GH¢67,166.52 million at the close of the previous week. This reflects a YTD gain of 5.75%.

The week witnessed a total of 3,745,503 shares valued at GH¢4,494,334.19 changing hands, compared with 3,745,503 shares, valued at GH¢4,494,334.19 in the preceding week.

GCB  dominated both  volume and value  of trades for the week,  accounting for 25.59% and 41.37% of shares traded respectively.

The market ended the week with 2 decliners as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD  for the week. It traded at GH¢10.9441/$, compared with GH¢10.9398/$ at week open, reflecting w/w and YTD depreciations of 0.04% and 21.64% respectively. This compares with YTD loss of 15.55% a year ago.           

The Cedi  strengthened marginally against the GBP for the week. It traded at GH¢13.5805/£, compared with GH¢13.5900/£ at week open, reflecting w/w gain and YTD depreciation of 0.07% and 24.07% respectively. This compares with YTD depreciation of 10.97% a year ago.

The Cedi also strengthened against the Euro for the week. It traded at GH¢12.0139/€, compared with GH¢12.0212/€ at week open, reflecting w/w gain and YTD depreciation of 0.06% and 23.87% respectively. This compares with YTD loss of 10.95% a year ago.          

The Cedi again appreciated against the Canadian Dollar at week end. It opened at GH¢8.1796/C$ but closed at GH¢8.0868/C$, reflecting w/w gain and YTD loss of 1.15% and 21.82% respectively. This compares with YTD depreciation of 15.20% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,530.92 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,791.58 million raised in the previous week.

The 91-Day Bill settled at 19.86% p.a from 19.74% p.a. last week whilst the 182-Day Bill settled at  22.58% p.a from 22.47% p.a. last week. The 364-Day Bill settled at 27.26% p.a from 26.90% p.a. last week.

The tables below highlight primary market activity at close of the week.

 Source: Bank of Ghana

 Source: Bank of Ghana

COMMODITY MARKET

Crude prices fell for a third time in four days as growing expectations for a tenth U.S. rate hike since the pandemic and a recession at some point this year weighed on oil markets. Brent futures traded at US$86.31 a barrel, compared to US$85.12 at week open, reflecting w/w and YTD depreciations of 5.39% and 4.95% respectively.

Gold prices dropped to settle just a shade below the $2,000 mark ahead of a keenly-watched Federal Reserve decision on U.S. interest rates. Gold settled at US$2,002.00, from US$2,011.90 last week, reflecting w/w depreciation  and YTD appreciation of 1.13% and 8.39% respectively.

The price of Cocoa realised some significant gains for the week. Cocoa traded at US$3,171.00  per tonne on Friday, from US$2,984.00 last week, reflecting  w/w  and YTD appreciations of 6.27% and 21.96% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Dividend Payout Ratio: The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company. It is the percentage of earnings paid to shareholders via dividends. The amount that is not paid to shareholders is retained by the company to pay off debt or to reinvest in core operations.

Source: https://www.investopedia.com/terms/d/dividendpayoutratio.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