STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) crossed the 8,000-point threshold as thirteen equities recorded solid price gains during the week.

The GSE Composite Index (GSE-CI) gained 340.85 points (+4.38%) for the week to close at 8,120.00 points, reflecting a year-to-date (YTD) gain of 66.10%.  

The GSE Financial Index (GSE-FI) also increased by 97.65 points (+2.67%) for the week to close at 3,751.34 points, reflecting a year-to-date (YTD) gain of 57.57%. 

Market capitalization grew by 2.83% to close the week at GH¢161,818.77 million, from GH¢157,370.67 million at the close of the previous week. This reflects a YTD gain of 45.32%.

The week recorded a total of 7,651,661 shares, valued at GH¢37,466,387.22, compared with 8,799,788 shares valued at GH¢33,762,941.34 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 82.10% and 69.57% of the volume and value of shares traded, respectively.

The market closed the week with 13 advancers and 2 laggards as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi depreciated marginally against the USD for the week. It traded at GH¢12.4000/$, compared with GH¢12.2700/$ at week open, reflecting w/w loss and YTD appreciation of 1.05% and 18.55% respectively. This compares with a depreciation of 24.95% a year ago.             

The Cedi also depreciated against the GBP. It traded at GH¢16.6266/£, compared with GH¢16.5455/£ at week open, reflecting w/w depreciation and YTD gain of 0.49% and 10.67% respectively. This compares with a depreciation of 28.67% a year ago.

The Cedi further weakened against the Euro for the week. It traded at GH¢14.5001/€, compared with GH¢14.4219/€ at week open, reflecting w/w loss and YTD appreciation of 0.54% and 4.92% respectively. This compares with a depreciation of 25.77% a year ago.    

The Cedi however appreciated marginally against the Canadian Dollar for the week. It opened at GH¢8.9108/C$ and closed at GH¢8.8934/C$, reflecting w/w and YTD gains of 0.20% and 14.81% respectively. This compares with a depreciation of 23.21% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,463.03 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢3,432.82 million raised in the previous week.       

The 91-Day Bill settled at 10.24% p.a. from 10.46% p.a. last week, whilst the 182-Day Bill settled at 11.67% p.a. from 12.36% p.a. last week. The 364-Day Bill settled at 11.43% p.a. from 12.88% 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 rose as Ukraine’s drone attacks on Russia’s energy infrastructure cut the country’s fuel exports. Brent futures traded at US$69.22 a barrel, compared to US$66.68 at week's open, reflecting w/w gain and YTD depreciation of 3.81% and 7.26% respectively.

Gold saw increased safe haven demand this week amid increasing conviction that U.S. lawmakers will not be able to avert a government shutdown. Gold settled at US$3,793.90, from US$3,705.80 last week, reflecting w/w and YTD appreciations of 2.38% and 43.65% respectively.

The price of Cocoa further declined for the week. Cocoa traded at US$6,908.00 per tonne on Friday, from US$7,243.00 last week, reflecting w/w and YTD losses of 4.63% and 40.16% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Knock-Out Option: It is a barrier option with a built-in mechanism causing it to expire worthless if the underlying asset hits a specified price level. This design introduces limits on potential gains, allowing these options to be acquired at lower premiums than standard options. Primarily utilized by large institutions in commodity and currency markets, knock-out options may also be traded over-the-counter.

 Source:https://www.investopedia.com/terms/k/knock-outoption.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.