STOCK MARKET REVIEW

The Ghana Stock Exchange remained flat for the week amid price increase by 1 counter. The GSE Composite Index (GSE CI) remained flat for the week closing at 2,443.91 points (0.00%), reflecting a year-to-date (YTD)  gain of 0.00%. The GSE Financial Stocks Index (GSE FI) remained flat for the week (0.00%) closing at 2,052.59 points, reflecting YTD of 0.00%.

Market capitalization increased by 0.12% to close the week at GH¢64,586.47 million, from GH¢64,507.32 million at the close of the previous week. This reflects a YTD appreciation of 0.12%.

Trading activity recorded a total of 124,197 shares valued at GH¢2,077,557.48 changing hands, compared with 603,656 shares, valued at GH¢2,986,196.83 in the preceding week.

MTN  dominated volume of trades for the week whiles New Gold dominated value of trades for the week,  accounting for 62.49% and 94.93% of shares traded respectively.

The market ended the week with 1 advancer and no decliner as indicated on the table below. `

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi weakened against the USD for the week. It traded at GH¢9.0047/$, compared with GH¢8.5760/$ at week open, reflecting both w/w and YTD depreciation of 4.76%. This compares with YTD depreciation of 0.00% a year ago.               

The Cedi similarly weakened against the GBP for the week. It traded at GH¢10.8174/£, compared with GH¢10.3118/£ at week open, reflecting both w/w and YTD depreciation of 4.67%. This compares with YTD appreciation of 0.02% a year ago.

The Cedi again weakened against the Euro for the week. It traded at GH¢9.5408/€, compared with GH¢9.1457/€ at week open, reflecting both w/w and YTD depreciation of 4.14%. This compares with YTD appreciation of 0.50% a year ago.      

The Cedi further weakened against the Canadian Dollar for the week. It opened at GH¢6.3222/C$ but closed at GH¢6.6661/C$, reflecting both w/w and YTD depreciation of 5.16%. This compares with YTD appreciation of 0.75% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,676.02 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,809.42 million raised in the previous week.

The 91-Day Bill settled at 35.66% p.a from 35.36% p.a. last week whilst the 182-Day Bill settled at  35.95% p.a from 35.98% p.a. last week.

The table and graph below highlight primary market yields at close of the week.

 Source: Bank of Ghana

COMMODITY MARKET

Energy futures for crude oil, refined products and natural gas plummeted in the new year as traders reconsidered near-term worries over cold weather and fears of supply shortages and dumped contracts. Brent futures traded at US$78.57 a barrel, compared to US$85.91 at week open, reflecting w/w  and YTD depreciations of 8.54% and 8.54% respectively.

Gold prices scaled up to near seven-month highs, as moderating U.S. jobs growth signaled more slowing of rate hikes by the Federal Reserve. Gold settled at US$1,869.70, from US$1,835.80 last week, reflecting w/w gain  and YTD appreciations of 1.85% and 2.38% respectively.

The price of Cocoa recorded an increase for the week. The commodity traded at US$2,605.00  per tonne on Friday, from US$2,600.00 last week, reflecting  w/w  and YTD appreciations of 0.19% and 0.19% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

High Yield Debt:  High yield debt is a phrase sometimes used in finance to describe when a high yield bond is deemed to be below investment grade. High yield bonds have a very high risk of default or are vulnerable to other adverse credit events. These bonds are attractive to investors because despite the risk they typically pay much higher yields than better quality bonds.

Source: https://www.menzies.co.uk/helping-you/business-recovery/debt-glossary/

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.