STOCK MARKET REVIEW

The Ghana Stock Exchange retreated for the week on the back of declines by 2 counters. The GSE Composite Index (GSE CI) lost 6.11 points (-0.22%) to close at 2,738.63 points, reflecting year-to-date (YTD) loss of 1.82%. The GSE Financial Stocks Index (GSE FI) however, gained 24.62 points (+1.15%) to close at 2,167.29 points, reflecting year-to-date (YTD) gain of 0.72%.

Market capitalization advanced by 0.42% to close the week at GH¢63,985.35 million, from GH¢63,713.16 million at the close of the previous week. This reflects YTD decrease of 0.79%.

Trading activity recorded a total of 18,582,177 shares valued at GH¢24,300,166.61 changing hands, compared with  1,892,384 shares, valued at GH¢2,142,874 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 77.99% and 63.22% of volume and value of shares traded respectively .  

The market ended the week with 3 advancers and 2 decliners as indicated on the table below.

CURRENCY MARKET

The Cedi depreciated against the USD for the nineth consecutive week. It traded at GH¢7.1125/$ on Friday, compared to GH¢7.0250/$ at week open, reflecting w/w and YTD depreciations of 1.23% and 15.56% respectively. This compares with YTD appreciation of 0.57% a year ago.   

The Cedi   also depreciated  against the GBP for the week. It traded at GH¢9.3533/£, compared with GH¢9.1814/£ at week open, reflecting w/w  and YTD depreciation of 1.84%  and 13.11% respectively. This compares with YTD depreciation of 0.78% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢7.8451/€, compared with GH¢7.6934/€ at week open, reflecting w/w and YTD depreciations of 1.93% and 12.96%  respectively. This compares with YTD appreciation of 3.74% a year ago. 

The Cedi  further weakened against the Canadian Dollar for the week. It opened at GH¢5.5280/C$ but closed at GH¢5.6371/C$, reflecting w/w and YTD depreciations of 1.94% and 15.89%  respectively. This compares with YTD depreciation of 1.00% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,178.22 million for the week across the 91-Day and 182-Day Treasury bills, compared to GH¢2,341.25 million raised in the previous week.

The 91-Day Bill settled at  13.42%, from  13.25% last week whiles the  182-Day Bill settled at 13.61%, from 13.55% last week.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices logged a second weekly loss as the Russia-Ukraine war premium dipped from its highs of two weeks ago. Brent futures traded at US$107.93 a barrel on Friday, compared to US$112.67 at week open. This reflects w/w loss and YTD gain of 4.21% and 38.76% respectively.

Gold dipped on Friday and for the week, as the dollar strengthened. Gold settled at US$1,929.30 from US$ 1,985.00 last week, reflecting w/w loss and YTD  appreciation of 2.81% and 5.51% respectively.

Prices of Cocoa dipped for the week. The commodity traded at US$2,537.00 per tonne on Friday, from US$2,580.00 last week, reflecting  w/w loss and YTD appreciation of 1.67% and 0.67% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Dirty Float:  A dirty float is a floating exchange rate where a country's central bank occasionally intervenes to change the direction or the pace of change of a country's currency value. In most instances, the central bank in a dirty float system acts as a buffer against an external economic shock before its effects become disruptive to the domestic economy. A dirty float is also known as a "managed float."

Source: https://www.investopedia.com/terms/d/dirtyfloat.asp

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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.