STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) consolidated its dominant run all year, buoyed by significant price increases in counters like GGBL and EGL.

The GSE Composite Index (GSE-CI) grew by 146.14 points (+1.62%) for the week to close at 9,152.65 points, reflecting a year-to-date (YTD) gain of 4.36%.  

The GSE Financial Index (GSE-FI) also gained 104.54 points (+2.12%) for the week to close at 5,036.96 points, reflecting a year-to-date (YTD) gain of 8.39%. 

Market capitalization grew marginally by 1.07% to close the week at GH¢180,744.68 million, from GH¢178,835.59 million at the close of the previous week. This reflects a YTD gain of 5.06%.

The week recorded a total of 68,410,491 shares, valued at GH¢292,481,484.17, compared with 67,239,961 shares valued at GH¢271,916,848.51 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 92.03% and 90.41% of the volume and value of shares traded, respectively.

The market closed the week with 12 advancers and 2 laggards as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi retracted against the USD for the week. It traded at GH¢10.9800/$, compared with GH¢10.9500/$ at week open, reflecting w/w and YTD depreciations of 0.27% and 4.83% respectively. This compares with a depreciation of 5.07% a year ago.      

The Cedi also tightened against the GBP for the week. It traded at GH¢14.9367/£, compared with GH¢15.0240/£ at week open, reflecting w/w appreciation and YTD loss of 0.58% and 5.88% respectively. This compares with an appreciation of 4.25% a year ago.

The Cedi weakened against the Euro for the week. It traded at GH¢12.9726/€, compared with GH¢13.0112/€ at week open, reflecting w/w gain and YTD depreciation of 0.30% and 5.39% respectively. This compares with a depreciation of 5.08% a year ago.      

The Cedi extended its losing streak against the Canadian Dollar for the week. It opened at GH¢8.0765/C$ and closed at GH¢8.0541/C$, reflecting w/w gain and YTD loss of 0.28% and 5.38%, respectively. This compares with a depreciation of 5.63% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢5,826.14 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢12,306.03 million raised in the previous week.       

The 91-Day Bill settled at 9.97% p.a. from 10.83% p.a. last week, whilst the 182-Day Bill settled at 11.82% p.a. from 12.38% p.a. last week. The 364-Day Bill settled at 12.06% p.a. from 12.82% 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 slightly, as traders watched for any worsening in relations between the U.S. and Iran, while anticipation of key economic readings also kept markets on their toes. Brent futures traded at US$68.05 a barrel, compared to US$70.69 at week's open, reflecting w/w loss and YTD appreciation of 3.73% and 11.83% respectively.

Gold price increased marginally, as investors await delayed U.S. economic reports. Gold settled at US$4,979.80, from US$4,745.10 last week, reflecting w/w and YTD appreciations of 4.95% and 13.53% respectively.

The price of Cocoa increased for the week. Cocoa traded at US$4,197.00 per tonne on Friday, from US$4,165.00 last week, reflecting w/w and YTD losses of 0.77% and 30.80% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Spread Betting: It involves speculating on the price movement of a financial asset without owning it, allowing traders to profit from rising or falling markets. It offers leveraged exposure across markets but carries risks like margin calls and widened spreads during volatility.

Source:

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