STOCK MARKET REVIEW
The Ghana Stock Exchange closed higher for the week on the back of price increases by 5 counters. The GSE Composite Index (GSE-CI) gained 112.98 points (+2.52%) for the week to close at 4,586.28 points, reflecting a year-to-date (YTD) gain of 46.52%.
The GSE Financial Stocks Index (GSE-FI) also gained 6.99 points (+0.33%) for the week to close at 2,115.52 points, reflecting a year-to-date (YTD) gain of 11.25%.
Market capitalization increased by 1.12% to close the week at GH¢94,355.99 million, from GH¢93,307.40 million at the close of the previous week. This reflects a YTD gain of 27.94%.
The week recorded a total of 735,157 shares valued at GH¢1,944,468.33, compared with 1,692,719 shares, valued at GH¢15,523,453.89 traded in the preceding week.
MTNGH dominated both the volume and value of trades for the week accounting for 61.74% and 55.29% of the volume and value of shares traded respectively.
The market ended the week with 5 advancers as indicated in the table below.

Price Movers for the Week
Equity    Opening Price               Closing Price     Gain/Loss (%)
RBGH                 0.48              0.52     ?8.33%
GCB                 5.60              5.90     ?5.36%
MTNGH                  2.34               2.41     ?2.99%
SCB               20.05            20.10     ?0.25%
BOPP               23.00            23.05     ?0.22%
Source: Ghana Stock Exchange
 
 
 
 
 
 

CURRENCY MARKET
The Cedi edged closer to a 4-month depreciation run against the USD for the week. It traded at GH¢14.9696/$, compared with GH¢14.8283/$ at week open, reflecting w/w and YTD depreciations of 0.94% and 20.64% respectively. This compares with a loss of 22.05% a year ago.    

The Cedi slipped against the GBP for the week. It traded at GH¢19.1409/£, compared with GH¢19.1009/£ at week open, reflecting w/w and YTD losses of 0.31% and 20.94% respectively. This compares with a depreciation of 26.29% a year ago.

The Cedi weakened further against the Euro for the week. It traded at GH¢16.3255/€, compared with GH¢16.1075/€ at week open, reflecting w/w and YTD depreciations of 1.34% and 19.60% respectively. This compares with a depreciation of 24.08% a year ago.     

The Cedi also lost some grounds against the Canadian Dollar for the week. It opened at GH¢10.7183/C$ but closed at GH¢10.8077/C$, reflecting w/w and YTD losses of 0.83% and 16.62% respectively. This compares with a depreciation of 23.34% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair    Year Open                Week Open     Week Close     Change%    YTD %
     01-01-24    29-07-24    02-08-24          
USD/GHS    11.8800    14.8283    14.9696    ?0.94    ?20.64
GBP/GHS    15.1334    19.0818    19.1409    ?0.31    ?20.94
EUR/GHS    13.1264    16.1075    16.3255    ?1.34    ?19.60
CAD/GHS    9.0112    10.7183    10.8077    ?0.83    ?16.62
 Source: Bank of Ghana
 

GOVERNMENT SECURITIES MARKET
The government raised a sum of GH¢3,803.81 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢4,062.11 million raised in the previous week.       
The 91-Day Bill settled at 24.82% p.a. from 24.79% p.a. last week whilst the 182-Day Bill settled at 26.76% p.a. from 26.74% p.a. last week. The 364-Day Bill settled at 27.86% p.a. from 27.86% p.a. last week.

The tables below highlight primary market activity at the close of the week.
Security    Year Open     Previous Yield %    Current Yield %    WoW Chg (%)    YTD  Chg (%)
     01-01-24    29-07-24    02-08-24          
91 Day TB                    29.24                     24.79                     24.82     ?0.15    ?15.11
182 Day TB                    31.88                     26.74                     26.76     ?0.08    ?16.06
364 Day TB                    32.49                     27.86                     27.86     ?0.01    ?14.25
Source: Bank of Ghana


The Ghana Market Summary
     Current     Previous     Change
Bid (GH¢' M)        3,803.81          4,062.11     ?6.36%
Issuance (GH¢' M)        3,803.81          4,062.11     ?6.36%
Target (GH¢' M)             4,363              4,779     ?8.70%
Maturity (GH¢' M)         3,221.54          3,515.02     ?8.35%
Target coverage ratio               0.87                0.85     na
Maturity coverage ratio                1.18                 1.16     na
Bid / Cover ratio               1.00                1.00     na
Source: Bank of Ghana

COMMODITY MARKET
Oil prices dipped lower, as a weak demand outlook after a global sell-off in markets countered price support from fears of an escalation in the Middle East conflict. Brent futures traded at US$82.63 a barrel, compared to US$82.63 at week open, reflecting w/w loss and YTD appreciation of 1.82% and 5.31% respectively.
Gold prices rose as a rout in global markets, amid concerns over an economic slowdown, fuelled safe-haven buying into the yellow metal. Gold settled at US$2,399.10, from US$2,399.10 last week, reflecting w/w decline and YTD gain of 0.75% and 14.92% respectively.

The price of Cocoa declined for the week. Cocoa traded at US$8,038.00 per tonne on Friday, from US$7,689.00 last week, reflecting w/w and YTD appreciations of 4.54% and 91.56% respectively.

 International Commodity Prices
Commodities    Year Open     Week Open    Week Close    Chg%    YTD %
     01-01-24    29-07-24    02-08-24          
Brent crude oil (USD/bbl)                77.04                     81.13                    76.81     ?5.32    ?0.30
Gold (USD/t oz.)          2,071.80             2,381.00           2,469.80     ?3.73    ?19.21
Cocoa (USD/MT)        4,196.00           8,038.00            7,520.00     ?6.44    ?79.22
Source: www.investing.com
 

INVESTMENT TERM OF THE WEEK
Harmonic Mean: It is a numerical average used in finance to average multiples like the price-to-earnings ratio. It is calculated by dividing the number of observations, or entries in the series, by the reciprocal of each number. Thus, the harmonic mean is the reciprocal of the arithmetic mean of the reciprocals.
Source:
https://www.investopedia.com/terms/h/harmonicaverage.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

Name: Julian Sapara-Grant
Email: jsgrant@cidaninvestments.com
Tel:  +233 (0) 20 821 2079

CORPORATE INFORMATION
CIDAN Investments Limited
CIDAN House
House No. 261
Haatso, North Legon – Accra
Tel: +233 (0) 27 690 0011/ 55 989 9935
Fax: +233 (0)30 254 4351
Email: info@cidaninvestments.com
Website: www.cidaninvestments.com

Disclaimer: The contents of this report have been prepared to provide you with general information only. Information provided in 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.