STOCK MARKET REVIEW

The Ghana Stock Exchange dipped  for the week as declines in 2 counters outweighed gains in 2. The GSE Composite Index (GSE CI) lost 37.26 points (-1.36%) to close at 2,693.11 points, reflecting year-to-date (YTD) loss of 3.45%. The GSE Financial Stocks Index (GSE FI) also lost 4.75 points (-0.22%) to close at 2,112.90 points, reflecting year-to-date (YTD) loss of 1.81%.

Market capitalization declined by 0.61% to close the week at GH¢63,340.44 million, from GH¢63,730.40 million at the close of the previous week. This reflects YTD decrease of 1.79%.

Trading activity recorded a total of 4,790,054 shares valued at GH¢3,927,226.53 changing hands compared with 10,245,775 shares, valued at GH¢12,580,754.78 in the preceding week.

SIC Insurance dominated   volume of trade, accounting for 50.28% whilst Guiness Ghana Breweries dominated value of trades, accounting for 54.22% of trades respectively for the week.

The market ended the week with 2 price gainers and 2 price decliners as indicated on the table below.

CURRENCY MARKET

The Cedi continued its downward trend against the USD for the fifth consecutive week. It traded at GH¢6.4227/$ on Friday, compared to GH¢6.3020/$ at week open, reflecting w/w and YTD depreciations of 1.88% and 6.49% respectively. This compares with YTD depreciation of 0.03 a year ago.      

The Cedi also retreated against the GBP for the week. It traded at GH¢8.7391/£, compared with GH¢8.5754/£ at week open, reflecting w/w and YTD depreciations of 1.87%  and 7.00% respectively. This compares with YTD depreciation of 2.46% a year ago.

The Cedi again weakened against the Euro for the week as it traded at GH¢7.2865/€, compared with GH¢7.1867/€ at week open, reflecting w/w and YTD depreciations of 1.37% and 6.29%  respectively. This compares with YTD appreciation of 1.18% a year ago.

The Cedi  further weakened against the Canadian Dollar for the week. It opened at GH¢4.7847/C$ but closed at GH¢5.0565/C$, reflecting w/w and YTD depreciations of 1.74% and 6.23%  respectively. This compares with YTD depreciation of 0.74% a year ago.

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢827.14 million for the week across the 91-Day and 182-Day Treasury Bills, compared to GH¢1,634.90 million raised in the previous week.

The 91-Day Bill gained 22bps to settle at 12.91% p.a., from  12.69% p.a. last week whilst the 182-Day Bill added 3bps to settle at 13.29% p.a. from 13.26% p.a. previously.

The table and graph below highlight primary market yields at close of the week.

Source: Bank of Ghana

COMMODITY MARKET

Crude Oil prices ended the week mixed on Friday as investors weighed a potential supply disruption resulting from the Russia-Ukraine crisis against the prospect of increased Iranian oil exports. Brent futures traded at US$93.54 a barrel on Friday, compared to US$93.10 at week open. This reflects w/w  and YTD gains of 0.47% and 20.26%.

Gold prices inched up as concerns over heightened geopolitical tensions stoked demand for haven assets. Gold settled at US$1,899.80 from US$1,842.10 last week, reflecting w/w and YTD  appreciations of 3.13% and 3.89% respectively.

Prices of Cocoa declined for the week. The commodity traded at US$2,573.00 per tonne on Friday, from US$2,766.00 last week, reflecting  w/w loss and YTD appreciation of 6.98% and 2.10% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Monetary Base:  The monetary base (or M0) is the total amount of a currency that is either in general circulation in the hands of the public or in the form of commercial bank deposits held in the central bank's reserves. This measure of the money supply is not often cited since it excludes other forms of non-currency money that are prevalent in a modern economy.

Source: https://www.investopedia.com/terms/m/monetarybase.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).

Website: www.cidaninvestments.com

DisclaimerThe 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.