STOCK MARKET REVIEW

The Ghana Stock Exchange bounced back on the back of price gains by six (6) counters.

The GSE Composite Index (GSE-CI) increased by 169.31 points (+2.82%) for the week to close at 6,174.03 points, reflecting a year-to-date (YTD) gain of 26.30%.  The GSE Financial Index (GSE-FI), edged higher by 42.90 points (+1.32%) for the week to close at 3,287.72 points, reflecting a year-to-date (YTD) gain of 38.09%. 

Market capitalization grew by 1.62% to close the week at GH¢136,300.96 million, from GH¢134,127.13 million at the close of the previous week. This reflects a YTD gain of 22.40%.

The week recorded a total of 3,341,984 shares valued at GH¢21,884,945.51, compared with 11,195,035 shares, valued at GH¢39,698,355.32 traded in the preceding week.

MTNGH dominated the volume of trades for the week while SCB dominated the value of trades for the week accounting for 52.65% and 42.24% of the volume and value of shares traded respectively.

The market ended the week with 6 advancers as shown below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated against the USD for the week. It traded at GH¢10.3500/$, compared with GH¢10.2500/$ at week open, reflecting w/w decline and YTD appreciation of 0.97% and 42.03% respectively. This compares with a depreciation of 16.93% a year ago.     

The Cedi also extended its losing trend against GBP. It traded at GH¢14.0766/£, compared with GH¢13.9282/£ at week open, reflecting w/w loss and YTD gain of 1.05% and 30.72% respectively. This compares with depreciation of 16.57% a year ago.

The Cedi lost grounds against the Euro for the week. It traded at GH¢11.9673/€, compared with GH¢11.7330/€ at week open, reflecting w/w decline and YTD appreciation of 1.96% and 27.13% respectively. This compares with a depreciation of 14.20% a year ago.          

The Cedi further retracted against the Canadian Dollar for the week. It opened at GH¢7.5055/C$ and closed at GH¢7.6273/C$, reflecting w/w loss and YTD gain of 1.60% and 33.87% respectively. This compares with a depreciation of 13.39% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢7,194.07 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compares with GH¢4,375.48 million raised in the previous week.       

The 91-Day Bill settled at 14.70% p.a. from 14.79% p.a. last week, whilst the 182-Day Bill settled at 15.25% p.a. from 15.46% p.a. last week. The 364-Day Bill settled at 15.74% p.a. from 15.80% p.a. last week.

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

 Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices were driven higher by the Iran-Israel conflict, though major oil and gas infrastructure and flows have so far been spared from substantial impact. Brent futures traded at US$74.23 a barrel, compared to US$66.47 at week open, reflecting w/w gain and YTD depreciations of 11.67% and 0.55% respectively.

Gold prices inched up, as markets grabbed safe-haven assets as geopolitical tensions in the Middle East following an Israeli attack on Iran. Gold settled at US$3,452.80, from US$3,346.60 last week, reflecting w/w and YTD appreciations of 3.17% and 30.74% respectively.

The price of Cocoa slid for the week. Cocoa traded at US$9,768.00 per tonne on Friday, from US$10,259.00 last week, reflecting w/w gain and YTD loss of 4.79% and 15.39% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Tax Wedge: It is the difference between before-tax and after-tax wages. The tax wedge measures how much the government ostensibly receives as a result of taxing the labor force.

Tax wedge may also refer to the market inefficiency that is created when a tax is imposed on a good or service. The tax causes the supply and demand equilibrium to shift, creating a wedge of dead weight losses.

Source:

https://www.investopedia.com/terms/t/tax_wedge.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) 54 836 7639

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.