STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increase by 1 counter. The GSE Composite Index (GSE CI) gained 0.17 points (+0.01%) to close at 2,463.44 points, reflecting a year-to-date (YTD) loss of 11.68%. The GSE Financial Stocks Index (GSE FI) remained flat for the week closing at  2,076.84 points (0.00), reflecting YTD loss of 3.49%.

Market capitalization decreased by 0.038% to close the week at GH¢64,822.78 million, from GH¢64,847.14 million at the close of the previous week. This reflects a YTD appreciation of 0.51%.

Trading activity recorded a total of 103,111 shares valued at GH¢2,122,784.03 changing hands, compared with 2,485,460 shares, valued at GH¢2,280,028.33 in the preceding week.

MTN  dominated volume of trades whiles New Gold dominated value of trades for the week, accounting for 59.60% and 93.32% of shares traded respectively.

The market ended the week with 1 advancer and 1 laggard as indicated on the table below. `

Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi strengthened against the USD for the week. It traded at GH¢13.1039/$, compared with GH¢13.1051/$ at week open, reflecting w/w gain and YTD depreciation of 0.0092% and 54.17% respectively. This compares with YTD depreciation of 2.67% a year ago.            

The Cedi however lost grounds against the GBP for the week. It traded at GH¢16.0353/£, compared with GH¢15.8323/£ at week open, reflecting w/w and YTD depreciations of 1.27% and 49.32% respectively. This compares with YTD depreciation of 0.06% a year ago.

The Cedi again lost against the Euro for the week. It traded at GH¢13.7388/€, compared with GH¢13.6309/€ at week open, reflecting w/w and YTD depreciations of 0.79% and 50.30% respectively. This compares with YTD appreciation of 5.28% a year ago.       

The Cedi also strengthened against the Canadian Dollar for the week. It opened at GH¢9.7905/C$ but closed at GH¢9.7506/C$, reflecting w/w gain  and YTD depreciation of 0.41% and 51.37% respectively. This compares with YTD depreciation of 1.98% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢2,748.57 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢2,391.38 million raised in the previous week.

The 91-Day Bill settled at 36.18% p.a from 35.54% p.a. last week whilst the 182-Day Bill settled at  36.73% p.a from 36.38% p.a. last week.

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

Source: Bank of Ghana

COMMODITY MARKET

Oil prices rose sharply last week as more Chinese cities began relaxing strict anti-COVID measures, ramping up hopes for a full reopening, while the OPEC kept production steady after its latest meeting. Brent futures traded at US$85.87 a barrel on Friday, compared to US$83.71 at week open, reflecting w/w  and YTD appreciations of 2.58% and 10.40% respectively.

Gold broke free to hit a 5-month high above $1,800 an ounce last week as easing U.S. inflation and jobs growth pointed to the likelihood of smaller Federal Reserve rate hikes from hereon. Gold settled at US$1,809.60, from US$1,754.00 last week, reflecting w/w gain and YTD loss of 3.17% and 1.04% respectively.

The price of Cocoa recorded an increase for the week. The commodity traded at US$2,489.00  per tonne on Friday, from US$2,483.50 last week, reflecting  w/w gain   and YTD loss of 0.22% and 1.23% respectively.

International Commodity Prices

Source: www.investing.com

BUSINESS TERM OF THE WEEK

Debt Overhang:  Debt overhang refers to a debt burden so large that an entity cannot take on additional debt to finance future projects. The burden is so large that all earnings pay off existing debt rather than fund new investment projects, making the potential for defaulting higher.

Source: https://www.investopedia.com/terms/d/debtoverhang.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

CORPORATE INFORMATION

CIDAN Investments Limited

CIDAN House

Plot No. 169 Block 6

Haatso, North Legon – Accra

Tel: +233 (0) 26171 7001/ 26 300 3917

Fax: +233 (0)30 254 4351

Email: info@cidaninvestmens.com

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.