STOCK MARKET REVIEW

The Ghana Stock Exchange continued its bullish run for the third straight week as more financial counters experienced sustained price growth.

The GSE Composite Index (GSE-CI) gained 38.20 points (+0.62%) for the week to close at 6,248.48 points, reflecting a year-to-date (YTD) gain of 27.82%.  

The GSE Financial Index (GSE-FI) rose by 52.57 points (+1.58%) for the week to close at 3,376.01 points, reflecting a year-to-date (YTD) gain of 41.80%. 

Market capitalization inched up by 0.33% to close the week at GH¢137,302.04 million, from GH¢136,844.81 million at the close of the previous week. This reflects a YTD gain of 23.30%.

The week recorded a total of 5,785,849 shares, valued at GH¢21,808,497.25, compared with 5,904,756 shares valued at GH¢27,819,994.95 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades, accounting for 81.84% and 63.88% of the volume and value of shares traded, respectively.

The market ended the week strong with 7 gainers and 4 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢10.3100/$, compared with GH¢10.3001/$ at week open, reflecting w/w loss and YTD appreciation of 0.10% and 42.58% respectively. This compares with a depreciation of 18.55% a year ago.     

The Cedi lost some ground against the GBP. It traded at GH¢14.1479/£, compared with GH¢13.8736/£ at week open, reflecting w/w decline and YTD gain of 1.94% and 30.06% respectively. This compares with depreciation of 17.92% a year ago.

The Cedi retreated against the Euro for the week. It traded at GH¢12.0675/€, compared with GH¢11.8725/€ at week open, reflecting w/w loss and YTD appreciation of 1.62% and 26.08% respectively. This compares with a depreciation of 16.00% a year ago.            

The Cedi weakened against the Canadian Dollar for the week. It opened at GH¢7.5005/C$ and closed at GH¢7.5476/C$, reflecting w/w depreciation and YTD gain of 0.62% and 35.28% respectively. This compares with a depreciation of 15.49% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,343.32 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢2,952.91 million raised in the previous week.       

The 91-Day Bill settled at 14.69% p.a. from 14.70% p.a. last week, whilst the 182-Day Bill settled at 15.25% p.a. from 15.25% p.a. last week. The 364-Day Bill settled at 15.66% p.a. from 15.69% 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 fell, hitting levels seen prior to the recent Israel-Iran conflict amid pressure from easing supply concerns and expectations of an OPEC+ production hike. Brent futures traded at US$66.80 a barrel, compared to US$75.48 at week open, reflecting w/w and YTD depreciations of 11.50% and 10.50% respectively.

Gold prices slipped to a near four-week low as a stable Israel-Iran ceasefire weakened safe-haven demand, while investors awaited the Fed’s preferred inflation gauge for clues on future interest rates. Gold settled at US$3,287.60, from US$3,385.70 last week, reflecting w/w loss and YTD appreciation of 2.90% and 24.48% respectively.

The price of Cocoa grew for the week. Cocoa traded at US$8,921.00 per tonne on Friday, from US$8,169.00 last week, reflecting w/w gain and YTD loss of 9.21% and 22.73% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Short-Term Debt: It is a financial obligation that must be paid off within a year. For a company, short-term debts might include wages, income taxes payable, short-term bank loans, and lease payments

Source:

https://www.investopedia.com/terms/s/shorttermdebt.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.