STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the week on the back of price declines  by 4 counters. The GSE Composite Index (GSE CI) lost 27.45 points (-1.07%) to close at 2,533.04 points, reflecting year-to-date (YTD) loss of 9.19%. The GSE Financial Stocks Index (GSE FI) also lost 50.02 points (-2.40%) to close at 2,035.38 points, reflecting YTD loss of 5.41%.

Market capitalization dipped by 0.70% to close the week at GH¢64,351.56 million, from GH¢64,802.35 million at the close of the previous week. This reflects YTD decrease of 0.22%.

Trading activity recorded a total of 843,097 shares valued at GH¢42,192,323.65 changing hands, compared with 4,660,329 shares, valued at GH¢14,758,112.92 in the preceding week.

New Gold dominated both volume and value of trades for the week, accounting for 28.69% and 98.27% of total value and volume of shares traded respectively.

The market ended the week with 3 advancers  and 4 decliners as indicated on the table below. `

CURRENCY MARKET

The Cedi continued its depreciation against the USD for the week. It traded at GH¢8.1491/$, compared with GH¢8.0571$ at week open, reflecting w/w and YTD depreciations of 1.13% and 26.30% respectively. This compares with YTD depreciation of 1.26% a year ago.         

The Cedi  gained against the GBP for the week. It traded at GH¢9.6253/£, compared with GH¢9.7841/£ at week open, reflecting w/w gain and YTD loss of 1.65% and 15.56% respectively. This compares with YTD depreciation of 0.88% a year ago.

The Cedi also gained against the Euro for the week. It traded at GH¢8.1831/€, compared with GH¢8.2710/€ at week open, reflecting w/w gain and YTD depreciation of 1.07% and 16.56% respectively. This compares with YTD appreciation of 3.69% a year ago.            

The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢6.3063/C$ but closed at GH¢6.2734/C$, reflecting w/w gain and  YTD depreciation of 0.52% and 24.42% respectively. This compares with YTD depreciation of 0.21% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,097.20 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,860.97 million raised in the previous week.

The 91-Day Bill settled at 27.72% p.a from 27.34% p.a. last week whilst the 182-Day Bill settled at 29.29% p.a from 28.73% 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 fell for the week on the back of a stronger U.S. dollar and fears that an economic slowdown would weaken crude demand. Brent futures traded at US$96.72 a barrel on Friday, compared to US$98.15 at week open. This reflects a w/w loss and YTD gain of 1.46% and 24.35% respectively.

Gold prices Gold fell almost 3% for the week as mixed data raises questions on whether the fledgling U.S. recession will deepen or the dollar will pick up steam again as the Federal Reserve weighs more outsized rate hikes. Gold settled at US$1,762.90, from US$1,815.50 last week, reflecting w/w and YTD  loss of 2.90% and  3.59% respectively.

Prices of Cocoa inched up for the week. The commodity traded at US$2,362.00 per tonne on Friday, from US$2,352.00 last week, reflecting  w/w gain and YTD loss of 0.43% and 6.27% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Silent Bank Run: A silent bank run is when depositors withdraw funds in large volumes without physically entering the bank. Silent bank runs are similar to normal bank runs, except funds are withdrawn via electronic fund transfers, wire transfers, and other methods that do not require physical withdrawals of cash..

Source: https://www.investopedia.com/terms/s/silent-bank-run.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.