STOCK MARKET REVIEW

The Ghana Stock Exchange closed lower for the week on the back of movements by 4 counters. The GSE Composite Index (GSE CI) lost 5.17 points (-0.21%) to close at 2,438.74 points, reflecting a year-to-date (YTD) loss of 0.21%. The GSE Financial Stocks Index (GSE FI) also lost 5.44 points (-0.27%) to  close the week at 2,052.59 points, reflecting a YTD loss of 0.26%.

Market capitalization increased by 0.03% to close the week at GH¢64,607.91 million, from GH¢64,586.47 million at the close of the previous week. This reflects a YTD appreciation of 0.16%.

Trading activity recorded a total of 264,276 shares valued at GH¢430,743.65 changing hands, compared with 124,197 shares, valued at GH¢2,077,557.48  in the preceding week.

CAL  dominated volume of trades for the week whiles EGH dominated value of trades for the week,  accounting for 53.65% and 53.43% of shares traded respectively.

The market ended the week with 2 advancers and 2 decliners 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¢10.3357/$, compared with GH¢9.0047/$ at week open, reflecting w/w and YTD depreciations of 12.88% and 17.03% respectively. 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¢12.6184/£, compared with GH¢10.8174/£ at week open, reflecting w/w and YTD depreciations of 14.27% and 18.28% respectively. This compares with YTD depreciation of 1.11% a year ago.

The Cedi again lost  against the Euro for the week. It traded at GH¢11.1915/€, compared with GH¢9.5408/€ at week open, reflecting w/w and YTD depreciations of 14.75% and 18.28% respectively. This compares with YTD depreciation of 0.51% a year ago.        

The Cedi also weakened against the Canadian Dollar for the week. It opened at GH¢6.6661/C$ but closed at GH¢7.7052/C$, reflecting w/w and YTD depreciations of 13.49% and 17.95% respectively. This compares with YTD depreciation of 1.06% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,713.41 million for the week across the 91-Day , 182-Day and 364-Day Treasury Bills. This compared with GH¢1,676.02 million raised in the previous week.

The 91-Day Bill settled at 35.46% p.a from 35.66% p.a. last week whilst the 182-Day Bill settled at  35.83% p.a from 35.95% p.a. last week. The  364-Day Bill settled at  35.92% p.a from 35.89% 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 edged higher for the week as slowing U.S. inflation and China's reopening raised optimism of stronger global economic growth, and thus increased crude demand. Brent futures traded at US$85.91 a barrel, compared to US$78.57 at week open, reflecting w/w gain  and YTD depreciation of 8.54% and 0.73% respectively.

Gold neared a nine-month high as softening U.S. inflation and interest rate hike expectations boosted contrarian safe-haven trades. Gold settled at US$1,921.70, from US$1,869.70 last week, reflecting w/w  and YTD appreciations of 2.78% and 5.23% respectively.

The price of Cocoa recorded an increase for the week. The commodity traded at US$2,651.00  per tonne on Friday, from US$2,605.00 last week, reflecting  w/w  and YTD appreciations of 1.77% and 1.96% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Revocable Trust:  A revocable trust is a trust whereby provisions can be altered or canceled depending on the wishes of the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.

Source: https://www.investopedia.com/terms/r/revocabletrust.asp

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.