STOCK MARKET REVIEW

The Ghana Stock Exchange improved for the week on the back of movements by 5 counters. The GSE Composite Index (GSE CI) gained 19.67 points    (+0.72%) to close at 2,762.03 points, reflecting a year-to-date (YTD) loss of 0.98%. The GSE Financial Stocks Index (GSE FI) however lost 5.09 points        (-0.24%) to close at 2,146.76 points, reflecting a year-to-date (YTD) loss of 0.24%.

Market capitalization inched up by 0.32% to close the week at GH¢64,213.36 million, from  GH¢64,007.49 million at the close of the previous week. This reflects YTD decrease of 0.44%.

Trading activity witnessed a total of   1,521,398 shares valued at GH¢2,393,280.56 changing hands for the week compared with  25,055,278 shares, valued at GH¢26,515,940 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 82.86% and 57.11% respectively of total shares traded.

The market closed the week with 2 price gainers and 3 decliners as indicated on the table below.

CURRENCY MARKET

The Cedi recorded no change against the USD for the second consecutive week. It traded at GH¢6.0063/$ on Friday, compared to GH¢6.0064/$ at week open, reflecting w/w and YTD depreciations of 0.00% and 0.00% respectively. This compares with YTD depreciation of 0.01% a year ago.

The Cedi recorded marginal depreciation against the GBP for the week as it traded at GH¢8.2181/£, compared with GH¢8.12575/£ at week open, reflecting w/w and YTD depreciations of 1.12% and 1.11% respectively. This compares with YTD appreciation of 0.53% a year ago.

The Cedi also lost against the Euro for the week as it traded at GH¢6.8630/€, compared with GH¢6.7939/€ at week open, reflecting w/w and YTD depreciations of 1.01% and 0.51%  respectively. This compares with YTD appreciation of 1.43% a year ago.

The Cedi again depreciated on the week against the Canadian Dollar. It opened at GH¢4.7065/C$ but closed at GH¢4.7922/C$, reflecting w/w and YTD depreciations of 1.79%  and 1.06  respectively. This compares with YTD appreciation of 0.24% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,065.41 billion for the week across the 91-Day and  182-Day Treasury bills, compared to GH¢982.73 million raised in the previous week.

The 91-Day bill remained unchanged at 12.52% p.a whiles 182-Day bill gained  1bp to settle at 13.21% p.a. from 13.20% p.a last week.

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

 Source: Bank of Ghana

COMMODITY MARKET

Crude settled higher on Friday, notching a fourth positive week, as global demand seems to be holding up despite the surge in Omicron cases while supply remains tight. Brent futures traded at US$86.06 a barrel on Friday, reflecting w/w  and YTD gains of 5.72% and 10.65%

Gold futures came under pressure amid a rise in Treasury yields on prospects of U.S. interest rate hikes and a recovery in the U.S. Dollar, following a two-week beat down.The yellow metal settled at $1,816.50 from US$1,797.40 last week, reflecting w/w gain and YTD loss of 1.06% and 0.66% respectively.

Prices of Cocoa inched up for the week  as the commodity traded at US$2,659.00 per tonne on Friday, from US$2,521.00 last week ,reflecting  w/w and YTD appreciation of 5.47% and 5.52% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Flat Yield Curve: The flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve flattening is often seen during transitions between normal and inverted curves. The difference between a flat yield curve and a normal yield curve is that a normal yield curve slopes upward.

Source: https://www.investopedia.com/terms/f/flatyieldcurve.asp https://www.investopedia.com/terms/s/shadow-market.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

Disclaimer

The 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.