STOCK MARKET REVIEW

The Ghana Stock Exchange strengthened for the week on the back of gains by 2 counters. The GSE Composite Index (GSE CI)  gained 11.07 points (+0.44%) to close at 2,507.31 points, reflecting year-to-date (YTD) loss of 10.11%. The GSE Financial Stocks Index (GSE FI) however lost 1.23 points (-0.06%) to close at  2,170.33 points, reflecting year-to-date (YTD) gain of 0.86%.

Market capitalization inched up by 0.19% to close the week at GH¢61,643.87 million, from GH¢61,528.03 million at the close of the previous week. This reflects YTD decrease of 4.42%.

Trading activity recorded a total of 8,475,595 shares valued at GH¢9,046,592.48 changing hands, compared with 29,705,115 shares, valued at GH¢25,805,228.99 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting, for 98.77% and 79.75% of volume and value of shares traded respectively.  

The market ended the week with 2 advancers and 1 laggard as indicated on the table below. `

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢7.2150/$, compared with GH¢7.2030/$ at week open, reflecting w/w and YTD depreciations of 0.17% and 16.76% respectively. This compares with YTD appreciation of 0.10% a year ago.       

The Cedi also weakened against the GBP for the week. It traded at GH¢8.8683/£, compared with GH¢8.7823/£ at week open, reflecting w/w and YTD depreciation of 0.97% and 8.36% respectively. This compares with YTD depreciation of 1.62% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢7.6162/€, compared with GH¢7.5394/€ at week open, reflecting w/w and YTD depreciation of 0.52% and 9.43% respectively. This compares with YTD appreciation of 2.78% a year ago.            

The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.5224/C$ but closed at GH¢5.5918/C$, reflecting w/w and  YTD depreciation of 1.24% and 15.20% respectively. This compares with YTD depreciation of 3.25% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,441.07  million for the week across the 91-Day, 182-Day and 364-DayTreasury Bills. This compared with GH¢1,504.54  million raised in the previous week.

The 91-Day Bill settled at 25.64% p.a from  24.68% p.a. last week whilst the 182-Day Bill settled at 26.40% p.a from 25.98% p.a. last week. The 364-Day Treasury bill settled at 27.43%, from 26.86% 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 remained flat week-on-week amid fears of slower demand from slowing U.S. economic growth and supply concerns on the market. Brent futures traded at US$113.12 a barrel on Friday, compared to US$113.12 at week open. This reflects w/w and YTD gain of 0.00% and 45.44% respectively.

Gold prices fell amid a keen watch on the Federal Reserve’s next rate move, as U.S. inflation barely moved from 40-year highs. Gold settled at US$1,828.90, from US$1,840.60 last week, reflecting w/w loss  and YTD  gain of 0.64% and  o.02% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,441.50 per tonne on Friday, from US$2,387.00 last week, reflecting  w/w gain and YTD losses of 2.28% and 3.12% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Fire Sale: A fire sale is the selling of assets at heavily discounted prices, often due to the seller’s financial distress.

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.