STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the week on the back of losses by 3 counters. The GSE Composite Index (GSE CI) lost 9.41 points (-0.37%) to close at  2,554.79 points, reflecting year-to-date (YTD) loss of 8.41%. The GSE Financial Stocks Index (GSE FI) also lost 17.86 points (-0.81%) to close at  2,192.57 points, reflecting year-to-date (YTD) gain of 1.89%.

Market capitalization dropped  by 0.42% to close the week at GH¢62,276.58 million, from GH¢62,540.50 million at the close of the previous week. This reflects YTD decrease of 3.44%.

Trading activity registered a total of 4,796,801  shares valued at GH¢4,288,986.32 changing hands, compared with 1,667,473 shares, valued at GH¢3,918,729.40 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting, for 92.53% and 93.13% of volume and value of shares traded respectively.  

The market ended the week with 1 leader and 3 laggards as indicated on the table below. `

CURRENCY MARKET

The Cedi depreciated against the USD for the week. It traded at GH¢7.1413/$, compared with GH¢7.1323/$ at week open, reflecting w/w and YTD depreciations of 0.13% and 15.90% respectively. This compares with YTD appreciation of 0.32% a year ago.       

The Cedi depreciated against the GBP for the second consecutive week. It traded at GH¢9.0020/£, compared with GH¢8.8979/£ at week open, reflecting w/w  and YTD depreciations of 1.16% and 9.72% respectively. This compares with YTD depreciation of 3.27% a year ago.

The Cedi  also lost  against  the Euro for the week. It traded at GH¢7.6440/€, compared with GH¢7.5276/€ at week open, reflecting w/w and YTD depreciations of 1.52% and 10.67% respectively. This compares with YTD appreciation of 1.00% a year ago.       

The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.5558/C$ but closed at GH¢5.5951/C$, reflecting w/w and YTD depreciation of 0.70% and 15.25% respectively. This compares with YTD depreciation of 4.72% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,124.50 million for the week across the 91-Day, 182-Day and  364-Day Treasury Bills. This compared with GH¢1,292.10 million raised in the previous week.

The 91-Day Bill settled at 19.94% p.a from  19.08% p.a. last week whilst the 182-Day Bill settled at 22.95% p.a from  20.76% p.a. last week. The 364-Day Bill settled at 24.46% p.a from 21.55% 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 rose on Friday, closing out the week with gains ahead of the U.S. Memorial Day holiday weekend, the start of peak U.S. demand season, and as European nations negotiate over whether to impose an outright ban on Russian crude oil. Brent futures traded at US$119.43 a barrel on Friday, compared to US$112.55 at week open. This reflects w/w loss and YTD gain of 0.90% and 44.70% respectively.

Gold  inched up on Friday  after the dollar retreated from 20-year highs. Gold settled at US$1,851.30, from US$1,842.10 last week, reflecting w/w and YTD  gains of 0.50% and 1.24% respectively.

Prices of Cocoa also inched up for the week. The commodity traded at US$2,462.00 per tonne on Friday, from US$2,429.00 last week, reflecting  w/w gain and YTD losses of 1.36% and 2.30% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Credit Enhancement: Credit enhancements are provisions that a borrower or a bond issuer can use to reduce a bond issue or debt by improving its creditworthiness. This process depresses the credit risk that comes with the debt, increasing the overall credit rating or credit score while providing reasonable and required security to the lender, plus lowering interest rates.

Source: https://www.theguarantors.com/blog/a-brief-guide-to-credit-enhancement

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).

Website: www.cidaninvestments.com

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.