MACROECONOMIC INDICATORS

STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of price decreases by 4 counters. The GSE Composite Index (GSE-CI) lost 50.37 points (-5.52%) to close the week at 2,571.06 points, reflecting a year-to-date (YTD) gain of 5.20%. The GSE Financial Stocks Index (GSE-FI) meanwhile lost 34.97 points (-2.03%) to close the week at 1,687.77 points, reflecting a YTD loss of 17.77%.

Market capitalization decreased by 2.47% to close the week at GH¢66,407.09 million, from GH¢68,090.91 million at the close of the previous week. This reflects a YTD gain of 2.95%.

The week recorded a total of 6,018,367 shares valued at GH¢66,002,877.74 changing hands, compared with 14,457,749 shares, valued at GH¢25,193,921.73 in the preceding week.

MTNGH dominated volume of trades for the week whiles New Gold dominated value of trades for the week, accounting for 51.48% and 90.55% of shares traded respectively.

The market ended the week with 3 advancers and 4 laggards as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi picked up against the USD for the week. It traded at GH¢10.8128/$, compared with GH¢10.9618/$ at week open, reflecting w/w gain and YTD depreciation of 1.38% and 20.69% respectively. This compares with a loss of 15.79% a year ago.               

The Cedi strengthened against the GBP for the week. It traded at GH¢13.4971/£, compared with GH¢13.6574/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.19% and 23.60% respectively. This compares with a depreciation of 8.66% a year ago.

The Cedi also appreciated against the Euro for the week. It traded at GH¢11.7050/€, compared with GH¢11.9009/€ at week open, reflecting w/w gain and YTD depreciation of 1.67% and 21.87% respectively. This compares with a depreciation of 9.29% a year ago.            

The Cedi again appreciated against the Canadian Dollar at week end. It opened at GH¢8.0121/C$ but closed at GH¢8.0765/C$, reflecting w/w gain and YTD depreciation of 1.00% and 21.09% respectively. This compares with a depreciation of 14.65% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,728.02 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢2,781.38 million raised in the previous week.

The 91-Day Bill settled at 20.56% p.a. from 20.43% p.a. last week whilst the 182-Day Bill settled at 23.36% p.a. from 22.96% 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

Oil prices slipped from a near US$77 a barrel during the week, as investor concern over the risk of a U.S. debt default dampened risk appetite despite a rise in gasoline demand and supply cuts from OPEC+ producers. Brent futures traded at US$75.58 a barrel, compared to US$74.17 at week open, reflecting w/w gain and YTD loss of 1.90% and 12.02% respectively.

Gold prices ticked lower, negating a short-lived recovery, as markets remained focused on negotiations over raising the U.S. spending limit. Gold settled at US$2,019.80, from US$2,024.80 last week, reflecting w/w and YTD loss of 1.89% and 8.51% respectively.

The price of Cocoa fell for the week. Cocoa traded at US$3,068.00 per tonne on Friday, from US$3,226.00 last week, reflecting w/w loss and YTD appreciation of 4.90% and 18.00% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

The Laffer Curve: The Laffer Curve states that if tax rates are increased above a certain level, then tax revenues can actually fall because higher tax rates discourage people from working.

Equally, the Laffer Curve states that cutting taxes could, in theory, lead to higher tax revenues.

Source: https://www.economicshelp.org/blog/140859/economics/the-laffer-curve/

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

Disclaimer: The 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.