STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 2 counters. The GSE Composite Index (GSE-CI) gained 50.37 points (+1.89%) to close the week at 2,721.17 points, reflecting a year-to-date (YTD) gain of 11.34%. The GSE Financial Stocks Index (GSE-FI) meanwhile lost 35.54 points (-2.02%) to close the week at 1,722.74 points, reflecting a YTD loss of 16.07%.

Market capitalization increased by 0.81% to close the week at GH¢68,090.91 million, from GH¢67,541.02 million at the close of the previous week. This reflects a YTD gain of 5.56%.

The week recorded a total of 14,457,749 shares valued at GH¢25,193,921.73 changing hands, compared with 7,941,302 shares, valued at GH¢10,227,007.98 in the preceding week.

MTNGH dominated volume of trades for the week whiles GCB dominated value of trades for the week, accounting for 39.95% and 32.59% of shares traded respectively.

The market ended the week with 2 advancers and 3 decliners as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢10.9618/$, compared with GH¢10.9518/$ at week open, reflecting w/w and YTD depreciations of 0.009% and 21.76% respectively. This compares with YTD loss of 15.60% a year ago.          

The Cedi strengthened against the GBP for the week. It traded at GH¢13.6574/£, compared with GH¢13.8305/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.27% and 24.50% respectively. This compares with YTD depreciation of 6.61% a year ago.

The Cedi also appreciated against the Euro for the week. It traded at GH¢11.9009/€, compared with GH¢12.0680/€ at week open, reflecting w/w gain and YTD depreciation of 1.40% and 23.15% respectively. This compares with YTD loss of 7.73% a year ago.             

The Cedi again appreciated against the Canadian Dollar at week end. It opened at GH¢8.0765/C$ but closed at GH¢8.0918/C$, reflecting w/w gain and YTD depreciation of 0.80% and 21.87% respectively. This compares with YTD depreciation of 13.75% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,781.38 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,567.79 million raised in the previous week.

The 91-Day Bill settled at 20.43% p.a. from 20.26% p.a. last week whilst the 182-Day Bill settled at 22.96% p.a. from 22.49% p.a. last week. The 364-Day Bill settled at 27.59% p.a. from 21.48% p.a. last week

The tables below highlight primary market activity at close of the week.

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices settled lower last week, as the market balanced supply fears against renewed economic concerns in the United States and China. Brent futures traded at US$74.17 a barrel, compared to US$75.30 at week open, reflecting w/w and YTD losses of 1.50% and 13.67% respectively.

Gold prices fell slightly as a slew of Federal Reserve officials warned that interest rates could still rise further amid relatively high inflation and a robust labour market. Gold settled at US$2,019.80, from US$2,024.80 last week, reflecting w/w loss and YTD gain of 0.25% and 10.60% respectively.

The price of Cocoa recorded an increase for the week. Cocoa traded at US$3,226.00 per tonne on Friday, from US$3,109.00 last week, reflecting w/w and YTD appreciations of 3.76% and 24.08% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Total Expense Ratio: The total expense ratio (TER) is a measure of the total costs associated with managing and operating an investment fund, such as a mutual fund. These costs consist primarily of management fees and additional expenses, such as trading fees, legal fees, auditor fees, and other operational expenses.

Source: https://www.investopedia.com/terms/t/ter.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

Disclaimer: The 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.