STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 3 counters. The GSE Composite Index (GSE-CI) gained 47.81 points (2.04%) to close the week at 2,390.43 points, reflecting a year-to-date (YTD) loss of 2.19%. The GSE Financial Stocks Index (GSE-FI) also lost 34.30 points (-1.70%) to  close the week at 1,983.82 points, reflecting a YTD loss of 3.35%.

Market capitalization increased by 0.78% to close the week at GH¢64,103.45 million, from GH¢63,604.41 million at the close of the previous week. This reflects a YTD depreciation of 0.63%.

Trading activity recorded a total of 1,913,758 shares valued at GH¢4,251,659.57 changing hands, compared with 902,475 shares, valued at GH¢827,347.05   in the preceding week.

GGBL  dominated both volume and value of trades for the week ,  accounting for 52.25% and 43.75% of shares traded respectively.

The market ended the week with 3 advancers and 6 decliners as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢10.7993/$, compared with GH¢10.7990/$ at week open, reflecting w/w and YTD depreciations of 0.003% and 20.59% respectively. This compares with YTD loss of 4.70% a year ago.            

The Cedi similarly weakened against the GBP for the week. It traded at GH¢13.0807/£, compared with GH¢13.0501/£ at week open, reflecting w/w and YTD depreciations of 0.23% and 21.17% respectively. This compares with YTD depreciation of 5.23% a year ago.

The Cedi meanwhile strengthened against the Euro for the week. It traded at GH¢11.5569/€, compared with GH¢11.6931/€ at week open, reflecting w/w gain and YTD depreciation of 1.18% and 20.86% respectively. This compares with YTD loss of 4.99% a year ago.            

The Cedi weakened against the Canadian Dollar for the week. It opened at GH¢8.0716/C$ but closed at GH¢8.0822/C$, reflecting w/w   and YTD depreciations of 0.13% and 21.78% respectively. This compares with YTD depreciation of 4.56% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,349.49 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,953.83 million raised in the previous week.

The 91-Day Bill settled at 35.73% p.a from 35.75% p.a. last week whilst the 182-Day Bill settled at  35.84% p.a from 35.81% p.a. last week. The 364-Day Bill settled at 35.62% p.a from 35.81% 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 soared at week end, boosted by the news that Russia plans to reduce oil production next month in response to Western price caps on the country's crude products. Brent futures traded at US$86.39 a barrel, compared to US$79.94 at week open, reflecting w/w  and YTD appreciations of 8.07% and 0.56% respectively.

Gold prices hovered around a one-month low last week amid pressure from rising short-term yields, and were headed for a second consecutive weekly loss as markets reassessed their expectations of more interest rate hikes from the Federal Reserve. Gold settled at US$1,862.80, from US$1,862.90 last week, reflecting w/w loss  and YTD appreciation of 0.01% and 2.00% respectively.

The price of Cocoa recorded a decrease for the week. Cocoa traded at US$2,564.00  per tonne on Friday, from US$2,569.00 last week, reflecting  w/w and YTD depreciations of 0.19% and 1.38% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Debt Service Coverage Ratio (DSCR): DSCR measures a company’s capacity to meet debt obligations using cash generated from operating activities

Source: https://corporatefinanceinstitute.com/resources/commercial-lending/debt-service-coverage-ratio/

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.