STOCK MARKET REVIEW

The Ghana Stock Exchange continued its month-long upward trend on the back of price increases by 3 counters.

 The GSE Composite Index (GSE-CI) grew by 29.02 points (+0.62%) for the week to close at 4,694.37 points, reflecting a year-to-date (YTD) gain of 49.97%. The GSE Financial Index (GSE-FI) also gained 25.52 points (+1.10%) for the week to close at 2,351.16 points, reflecting a year-to-date (YTD) gain of 23.64%.

Market capitalization inched up by 3.70% to close the week at GH¢108,368.85 million, from GH¢104,199.38 million at the close of the previous week. This reflects a YTD gain of 46.66%.

The week recorded a total of 774,647 shares valued at GH¢1,787,029.76, compared with 1,252,403 shares, valued at GH¢3,440,962.54 traded in the preceding week.

MTNGH dominated both the volume and the value of trades for the week accounting for 67.77% and 69.34% of the volume and value of shares traded respectively.

The market ended the week with 3 growers and 1 laggard, as indicated in the table below.

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi extended its strong run against the USD for the week. It traded at GH¢15.2700/$, compared with GH¢15.8000/$ at week open, reflecting w/w gain and YTD depreciation of 3.47% and 22.20% respectively. This compares with a loss of 26.20% a year ago.         

The Cedi edged higher against the GBP for the week. It traded at GH¢19.3952/£, compared with GH¢19.7714/£ at week open, reflecting w/w gain and YTD loss of 1.94% and 21.97% respectively. This compares with a depreciation of 29.77% a year ago.

The Cedi improved against the Euro for the week. It traded at GH¢16.1291/€, compared with GH¢16.4255/€ at week open, reflecting w/w gain and YTD depreciation of 1.84% and 18.62% respectively. This compares with a depreciation of 27.85% a year ago.     

The Cedi appreciated against the Canadian Dollar for the week. It opened at GH¢11.2937/C$ but closed at GH¢10.8928/C$, reflecting w/w appreciation and YTD loss of 3.68% and 17.27% respectively. This compares with a depreciation of 26.18% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,835.93 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢6,413.04 million raised in the previous week.       

The 91-Day Bill settled at 27.36% p.a. from 27.19% p.a. last week whilst the 182-Day Bill settled at 28.10% p.a. from 27.99% p.a. last week. The 364-Day Bill settled at 29.99% p.a. from 29.82% p.a. last week.

The government launched the flagship Bank of Ghana Gold Coin project to give investors alternatives to the currently-offered investment options on the market. The programme encourages investor participation through three (3) denominations; the 1.00 oz, 0.50 oz and the 0.25 oz.

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

 Source: Bank of Ghana

Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices closed lower by more than 3%, pressured by easing concern over supply risks from the Israel-Hezbollah conflict and the prospect of increased supply in 2025. Brent futures traded at US$72.94 a barrel, compared to US$75.17 at week open, reflecting w/w and YTD depreciations of 2.97% and 5.32% respectively.

Gold prices fell, pressured by a stronger dollar after U.S. President-elect Donald Trump threatened to impose steep tariffs on the BRICS group of countries to dissuade them from attempting to find alternatives to the dollar. Gold settled at US$2,681.00, from US$2,712.20 last week, reflecting w/w loss and YTD gain of 1.15 and 29.40% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$9,425.00 per tonne on Friday, from US$9,085.00 last week, reflecting w/w and YTD appreciations of 3.74% and 124.62% respectively.

 International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Defensive Stock: A defensive stock provides consistent dividends and stable earnings regardless of the overall state of the stock market. There's a constant demand for these companies' products so they tend to be more stable during the various phases of the business cycle.

Source: https://www.investopedia.com/terms/d/defensivestock.asp

ABOUT CIDAN

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Tel: +233 (0) 20 881 8957

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Tel: +233 (0) 24 499 0069

Name: Julian Sapara-Grant

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Tel:  +233 (0) 20 821 2079

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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.