STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the week on the back of losses posted by 3 counters. The GSE Composite Index (GSE CI)  lost 55.50 points (-0.33%) to close at 2,496.24 points, reflecting year-to-date (YTD) loss of 10.51%. The GSE Financial Stocks Index (GSE FI) also lost 15.47 points (-0.71%) to close at 2,171.56 points, reflecting year-to-date (YTD) gain of 0.92%.

Market capitalization declined by 1.15% to close the week at GH¢61,528.03 million, from GH¢62,244.68 million at the close of the previous week. This reflects YTD decrease of 4.60%.

Trading activity recorded a total of 29,705,115 shares valued at GH¢25,805,228.99 changing hands, compared with  2,429,825 shares, valued at GH¢2,174,862.13 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 98.16% and 97.29% of volume and value of shares traded respectively.  

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

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢7.2030/$, compared with GH¢7.2000/$ at week open, reflecting w/w and YTD depreciations of 0.04% and 16.62% respectively. This compares with YTD appreciation of 0.16% a year ago.       

The Cedi appreciated against the GBP for the week. It traded at GH¢8.7823/£, compared with GH¢8.8787/£ at week open, reflecting w/w appreciation  and YTD depreciation of 1.10% and 7.46% respectively. This compares with YTD depreciation of 0.89% a year ago.

The Cedi  also appreciated against the Euro for the week. It traded at GH¢7.5394/€, compared with GH¢7.5786/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.52% and 9.43% respectively. This compares with YTD appreciation of 3.52% a year ago.   

The Cedi further appreciated against the Canadian Dollar for the week. It opened at GH¢5.6244/C$ but closed at GH¢5.5224/C$, reflecting w/w appreciation and  YTD depreciation of 1.85% and 14.14% respectively. This compares with YTD depreciation of 1.98% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,504.54 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,102.72 million raised in the previous week.

The 91-Day Bill settled at 24.68% p.a from  23.70% p.a. last week whilst the 182-Day Bill settled at 25.98% p.a from  25.41% p.a. 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 tumbled to a four-week low on the back of concerns of interest rate hikes by major central banks and rise in the US dollar, which could slow the global economy and cut demand for energy. Brent futures traded at US$113.12 a barrel on Friday, compared to US$122.01 at week open. This reflects w/w loss and YTD gain of 7.29% and 45.44% respectively.

Gold prices fell as the U.S. Dollar and U.S. Treasury yields clawed back after a decline during the previous session. Gold settled at US$1,840.60, from US$1,875.50  last week, reflecting w/w loss  and YTD  gain of 1.86% and  o.66% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,387.00  per tonne on Friday, from US$2,385.00  last week, reflecting  w/w gain  and YTD loss of 0.08% and 5.28% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Bottom-Up Investing: Bottom-up investing is an investment approach that focuses on analyzing individual stocks and de-emphasizes the significance of macroeconomic and market cycles. In other words, bottom-up investing typically involves focusing on a specific company's fundamentals, such as revenue or earnings, versus the industry or the overall economy. The bottom-up investing approach assumes individual companies can perform well even in an industry that is underperforming, at least on a relative basis.

Source: https://www.investopedia.com/terms/b/bottomupinvesting.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.