STOCK MARKET REVIEW

The Ghana Stock Exchange moderated   for  the opening week of the year. The GSE Composite Index (GSE CI) lost 46.97 points    (-1.68%) to close at  2,742.36 points, reflecting a year-to-date (YTD) loss of 1.68%. The GSE Financial Stocks Index (GSE FI) remained flat at 2,151.85 points, reflecting a year-to-date (YTD) gain of 0.00%.

Market capitalization at the end of the week was GH¢64,007.49 million, representing a drop  of 0.46%  from GH¢64,792.47 million at the close of the previous week. This reflects YTD decrease of 0.76%.

Trading activity saw a total of  25,055,278 shares valued at GH¢26,515,940 changing hands for the week compared with 5,081,846 shares, valued at GH¢6,716,737.26 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 99.04% and 99.64% respectively of total shares traded.

The market closed the week with no  price gainers and 1 decliner as indicated on the table below.

CURRENCY MARKET

The Cedi recorded no change against the USD for the week. It traded at GH¢6.0064/$ on Friday, compared to GH¢6.0061/$ at week open, reflecting w/w and YTD depreciations of 0.00% and 0.00% respectively against the USD. This compares with YTD depreciation of 0.01% a year ago.

The Cedi recorded marginal gains against the GBP for the week as it traded at GH¢8.1272/£, compared with GH¢8.1320/£ at week open, reflecting w/w and YTD appreciations of 0.02% and 0.02% respectively against the GBP. This compares with YTD depreciation of 0.76% a year ago.

The Cedi also posted gains against the Euro for the week. It traded at GH¢6.7939/€, compared with GH¢6.8281/€ at week open, reflecting w/w and YTD appreciations of 0.50% each respectively against the Euro. This compares with YTD depreciation of 0.22% a year ago.

The Cedi again appreciated on the week as it opened at GH¢4.7416/C$ but closed at GH¢4.7065/C$, reflecting w/w and YTD appreciations of 0.75% each respectively against the CAD. This compares with YTD depreciation of 0.11% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢982.73 million for the week across the 91-Day and  182-Day Treasury bills, compared to GH¢1,476.02 million raised in the previous week.

The 91-Day bill lost 1bp to close at 12.52% p.a. from 12.53% p.a. last week. The 182-Day bill also lost 1bp to settle at 13.20% p.a. from 13.21% 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 rose for a third straight week as demand remained resilient, while supplies are frayed across the OPEC+ coalition and beyond. Brent futures traded at US$81.75 a barrel on Friday, reflecting w/w  and YTD gain of 3.51% and 50.10%

Gold settled at just under the crucial $1,800 an ounce level after a modest bounce on Friday, despite losing almost 2% on the week for its biggest weekly decline since November resulting from rising U.S. Treasury yields. Gold prices settled at US$1,797.40 per ounce on Friday from US$1,828.60 last week, reflecting w/w and YTD losses of 0.15% and 1.71% respectively

Prices of Cocoa went up   as the commodity traded at US$2,521.00 per tonne on Friday, reflecting w/w and YTD appreciation of 0.88% and 0.04% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Shadow Market: A shadow market is an unregulated (or less regulated) private market where goods and services are exchanged with little or no oversight.

Source: https://www.investopedia.com/terms/s/shadow-market.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: Audrey Asiedua Wiafe

Email:aaudrey@cidaninvestments.com

Tel:+233 (0) 57 840 2700

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.