STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened marginally  for the week on the back of gains posted by SIC and Enterprise Group. The GSE Composite Index (GSE CI) gained 1.36 points (+0.05%) to close at 2,694.47 points, reflecting year-to-date (YTD) loss of 3.40%. The GSE Financial Stocks Index (GSE FI) also gained 2.47 points (+0.12%) to close at 2,115.36 points, reflecting year-to-date (YTD) loss of 1.70%.

Market capitalization declined by 0.76% to close the week at GH¢62,861.21 million, from GH¢63,340.44 million at the close of the previous week. This reflects YTD decrease of 2.53%.

Trading activity recorded a total of 8,224,838  shares valued at GH¢2,952,720.30 changing hands compared with 4,790,054 shares, valued at GH¢3,927,226.53 in the preceding week.

SIC dominated both volume and value of trades for the week, accounting for 82.86% and 28.30% respectively of total shares traded.  

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

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the Sixth consecutive week. It traded at GH¢6.6004/$ on Friday, compared to GH¢6.4227/$ at week open, reflecting w/w and YTD depreciations of 2.69% and 9.00% respectively. This compares with YTD appreciation of 0.40 a year ago.      

The Cedi also retreated against the GBP for the week. It traded at GH¢8.8311/£, compared with GH¢8.7391/£ at week open, reflecting w/w and YTD depreciations of 1.04%  and 7.97% respectively. This compares with YTD depreciation of 1.50% a year ago.

The Cedi again lost grounds against the Euro for the week as it traded at GH¢7.4179/€, compared with GH¢7.2865/€ at week open, reflecting w/w and YTD depreciations of 1.77%  and 7.95%  respectively. This compares with YTD appreciation of 1.58% a year ago.

The Cedi  further weakened against the Canadian Dollar for the week. It opened at GH¢5.0565/C$ but closed at GH¢5.1616/C$, reflecting w/w and YTD depreciations of 2.04%  and 8.14%  respectively. This compares with YTD depreciation of 0.06% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,212.80 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills, compared to GH¢827.14 million raised in the previous week.

The 91-Day Bill gained 4bps to settle at  13.03%, from  12.91% last week whiles the  182-Day Bill settled at 13.31% (+2bps) from 13.29% last week. The 364-Day Treasury Bill settled at 16.96%.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices slipped on Friday after sharp rises early in the session against concerns over potential global supply disruptions from sanctions on major crude exporter Russia. Brent futures traded at US$97.93 a barrel on Friday, compared to US$93.54 at week open. This reflects a w/w  and YTD gains of 4.69% and 25.91%.

Gold was down on Friday morning as Investors continue to re-assess the situation surrounding the Russian invasion of Ukraine on Thursday as well as further Western sanctions against Russia. Gold settled at US$1,887.60 from US$1,899.80 last week, reflecting w/w loss and YTD  appreciation of 0.64% and 3.23% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,576.00 per tonne on Friday, from US$2,573.00 last week, reflecting  w/w and YTD appreciation of 0.12% and 2.22% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Watered Stock:  Watered stock is shares in a corporation that are sold at a price higher than the value of the underlying assets. This situation can arise when the assets are grossly overvalued, usually through a manipulative scheme.

Source: https://www.accountingtools.com/articles/watered-stock

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).

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.