STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened for the week on the back of gains in share prices of 4 counters. The GSE Composite Index (GSE CI) gained 2.37 points (+0.09%) to close at 2,564.20 points, reflecting year-to-date (YTD) loss of 8.07%. The GSE Financial Stocks Index (GSE FI) also gained 4.11 points (+0.19%) to close at 2,210.43 points, reflecting year-to-date (YTD) gain of 2.72%.

Market capitalization inched up  by 0.05% to close the week at GH¢62,540.50 million, from GH¢62,508.52 million at the close of the previous week. This reflects YTD decrease of 3.03%.

Trading activity registered a total of 1,667,473 shares valued at GH¢3,918,729.40 changing hands, compared with   631,248,142 shares, valued at GH¢580,516,363.55 in the preceding week.

MTN dominated volume  of  trades for the week, accounting for 57.93% of trades whiles New Gold dominated value of trades, accounting for 60.42%  of shares traded respectively.

The market ended the week with 4 leaders and 1 laggards as indicated on the table below. `

CURRENCY MARKET

The Cedi marginally depreciated against the USD for the week. It traded at GH¢7.1323/$, compared with GH¢7.1163/$ at week open, reflecting w/w and YTD depreciations of 0.22% and 15.79% respectively. This compares with YTD appreciation of 0.50% a year ago.            

The Cedi depreciated against the GBP for the first time after gains in four consecutive weeks. It traded at GH¢8.8979/£, compared with GH¢8.7022/£ at week open, reflecting w/w  and YTD depreciation of 2.20% and 8.66% respectively. This compares with YTD depreciation of 3.03% a year ago.

The Cedi  also lost  against  the Euro for the week. It traded at GH¢7.5276/€, compared with GH¢7.4001/€ at week open, reflecting w/w and YTD depreciation of 1.69% and 9.29% respectively. This compares with YTD appreciation of 1.12% a year ago.              

The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.4975/C$ but closed at GH¢5.5558/C$, reflecting w/w and YTD depreciation of 1.05% and 14.65% respectively. This compares with YTD depreciation of 4.76% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,292.10 million for the week across the 91-Day, 182-Day and  3-Year Fixed Rate Bond. This compared with GH¢1,248.67 million raised in the previous week.

The 91-Day Bill settled at 19.08% p.a from  18.23% p.a. last week whilst the 182-Day Bill settled at 20.76% p.a from  19.26% p.a. last week. The 3-Year FXR Bond settled at 25.00% p.a from 20.85% p.a at last issue.

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

Source: Bank of Ghana

COMMODITY MARKET

Crude oil prices settled slightly higher for the week as a planned European Union ban on Russian oil and easing of COVID-19 lockdowns in China countered concerns that slowing economic growth will hurt demand. Brent futures traded at US$112.55 a barrel on Friday, compared to US$111.55 at week open. This reflects w/w loss and YTD gains of 0.90% and 44.70% respectively.

Gold prices rose to a one-week high  as the U.S. dollar receded from two-decade highs, reviving demand for safe-haven bullion. Gold settled at US$1,842.10, from US$1,808.20 last week, reflecting w/w and YTD  gains of 1.87% and 0.74% respectively.

Prices of Cocoa declined for the week. The commodity traded at US$2,429.00 per tonne on Friday, from US$2,483.00 last week, reflecting  w/w and YTD losses of 2.17% and 3.61% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Capital Flight: Capital flight is a large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, currency devaluation or the imposition of capital controls.

Source: https://www.investopedia.com/terms/c/capitalflight.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).