STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 5 counters. The GSE Composite Index (GSE-CI) gained 2.62 points (+0.07%) for the week to close at 3,753.69 points, reflecting a year-to-date (YTD) gain of 19.92%. The GSE Financial Stocks Index (GSE-FI) also gained 2.76 points (+0.13%) for the week closing at 2,052.70 points, reflecting a year-to-date (YTD) gain of 7.95%.

Market capitalization increased by 0.05% to close the week at GH¢83,930.57 million, from GH¢83,885.20 million at the close of the previous week. This reflects a YTD gain of 13.58%.

The week recorded a total of 2,584,743 shares valued at GH¢6,649,476.47, compared with 23,024,885 shares, valued at GH¢47,254,605.42 traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 91.93% and 64.32% of the volume and value of shares traded respectively. The market ended the week with 5 advancers and 1 decliner as indicated in the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi continued its depreciation run against the USD for the week. It traded at GH¢14.1301/$, compared with GH¢13.9550/$ at week open, reflecting w/w and YTD depreciations of 1.24% and 15.92% respectively. This compares with a loss of 21.83% a year ago.             

The Cedi also extended its losing streak against the GBP for the week. It traded at GH¢17.9996/£, compared with GH¢17.7808/£ at week open, reflecting w/w and YTD losses of 1.22% and 15.92% respectively. This compares with a depreciation of 24.65% a year ago.

The Cedi again fell against the Euro for the week. It traded at GH¢15.3345/€, compared with GH¢15.1429/€ at week open, reflecting w/w and YTD depreciations of 1.25% and 14.40% respectively. This compares with a depreciation of 22.28% a year ago.            

The Cedi also lost grounds against the Canadian Dollar for the week. It opened at GH¢10.2121/C$ but closed at GH¢10.3559/C$, reflecting w/w and YTD depreciations of 1.39% and 12.99% respectively. This compares with a depreciation of 22.54% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,520.24 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢4,115.28 million raised in the previous week.       

The 91-Day Bill settled at 25.04% p.a. from 25.10% p.a. last week whilst the 182-Day Bill settled at 26.92% p.a. from 26.95% p.a. last week. The 364-Day Bill settled at 27.91% p.a. from 27.95% p.a. last week.

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

Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices fell, extending losses after the OPEC+ signalled it would begin tapering off its production cuts this year, while weak economic data raised concerns about sluggish demand. Brent futures traded at US$81.62 a barrel, compared to US$82.12 at week open, reflecting w/w loss and YTD gain of 0.61% and 5.94% respectively.

Gold prices gained marginally helped by a weaker dollar as investors look forward to U.S. inflation data this week for more clarity on interest rate cut timings. Gold settled at US$2,345.80, from US$2,345.40 last week, reflecting w/w and YTD appreciations of 0.02% and 13.23% respectively.

The price of Cocoa appreciated for the week. Cocoa traded at US$9,331.00 per tonne on Friday, from US$8,294.00 last week, reflecting w/w and YTD appreciations of 12.87% and 97.66% respectively.

 International Commodity Prices

Source: www.investing.com.

BUSINESS TERM OF THE WEEK

Promissory Note: It is a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date. A promissory note typically contains all the terms involved, such as the principal debt amount, interest rate, maturity date, payment schedule, the date and place of issuance, and the issuer's signature.

Source: https://www.investopedia.com/terms/p/promissorynote/.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

Name: Julian Sapara-Grant

Email: jsgrant@cidaninvestments.com

Tel:  +233 (0) 20 821 2079

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

House No. 261

Haatso, North Legon – Accra

Tel: +233 (0) 27 690 0011/ 55 989 9935

Fax: +233 (0)30 254 4351

Email: info@cidaninvestments.com

Website: www.cidaninvestments.com

Disclaimer: The contents of this report have been prepared to provide you with general information only. Information provided in 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.