STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the third consecutive week on the back of price declines  by 4 counters. The GSE Composite Index (GSE CI) lost 11.69 points (-0.47%) to close at   2,488.21  points, reflecting year-to-date (YTD) loss of 10.80%. The GSE Financial Stocks Index (GSE FI) also lost 17.69 points (-0.85%) to close at  2,055.64   points, reflecting YTD loss of 4.47%.

Market capitalization declined  by 0.19% to close the week at GH¢64,279.00 million, from GH¢64,401.07  million at the close of the previous week. This reflects YTD decrease of 0.34%.

Trading activity recorded a total of   953,819 shares valued at GH¢1,460,375.70 changing hands, compared with  11,666,517  shares, valued at GH¢12,084,263.04 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 71.99% and 42.78% of shares traded respectively.

The market ended the week with no advancer  and decliner as indicated on the table below. `

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢9.5414/$, compared with GH¢9.0100/$ at week open, reflecting w/w and YTD depreciations of 5.57% and 37.05% respectively. This compares with YTD depreciation of 1.78% a year ago.        

The Cedi also weakened against the GBP for the week. It traded at GH¢10.4150/£, compared with GH¢10.2741/£ at week open, reflecting w/w and YTD depreciations of 1.35% and 21.97% respectively. This compares with YTD depreciation of 1.77% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢9.0151/€, compared with GH¢9.2721/€ at week open, reflecting w/w and YTD depreciations of 2.77% and 26.36% respectively. This compares with YTD appreciation of 2.86% a year ago.            

The Cedi likewise weakened against the Canadian Dollar for the week. It opened at GH¢6.7825/C$ but closed at GH¢7.0265/C$, reflecting w/w gain and YTD depreciation of 3.47% and 32.52% 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¢1,192.30  million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,929.78  million raised in the previous week.

The 91-Day Bill settled at  30.18% p.a from 29.91% p.a. last week whilst the 182-Day Bill settled at  31.34% p.a from 31.14% p.a. last week. The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Oil prices slumped for the week as recession fears and a strong dollar spooked the market where participants were waiting for details on new sanctions on Russia.. Brent futures traded at US$86.15 a barrel on Friday, compared to US$91.10 at week open. This reflects w/w loss and YTD gain of 5.43% and 10.76% respectively.

Gold prices retreated further for the week as the dollar notched a new 20-year high amid growing fears of rising interest rates and a potential economic recession. Gold settled at US$1,655.60, from US$1,668.15  last week, reflecting w/w and YTD  loss of 0.75% and 9.46% respectively.

Prices of Cocoa also declined for the week. The commodity traded at US$2,247.00 per tonne on Friday, from US$2,354.50 last week, reflecting  w/w and YTD loss of 4.57% and 10.83% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Deficit Financing: Deficit financing means generating funds to finance the deficit which results from excess of expenditure over revenue. The gap being covered by borrowing from the public by the sale of bonds or by printing new money.

Source:  https://economictimes.indiatimes.com/budget-faqs/what-is-deficit-financing/articleshow/73329358.cms

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).

RESEARCH TEAM

Name: Ernest Tannor

Email:etannor@cidaninvestments.com

Tel:+233 (0) 20 881 8957

Name: Moses Nana Osei-Yeboah

Email:moyeboah@cidaninvestments.com

Tel:+233 (0) 24 499 0069

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

Haatso, North Legon – Accra

Tel: +233 (0) 26171 7001/ 26 300 3917

Fax: +233 (0)30 254 4351

Email: info@cidaninvestmens.com

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.