STOCK MARKET REVIEW

The Ghana Stock Exchange closed higher for the week on the back of price increases by 6 counters. The GSE Composite Index (GSE-CI) gained 233.22 points (+9.41%) to close the week at 2,712.75 points, reflecting a year-to-date (YTD) gain of 11.00%. The GSE Financial Stocks Index (GSE-FI) however lost 29.54 points (-1.57%)  for the week closing at 1,884.87 points, reflecting a YTD loss of 9.61%.

Market capitalization increased by 3.81% to close the week at GH¢67,471.48 million, from GH¢64,992.14 million at the close of the previous week. This reflects a YTD gain of 4.60%.

The week witnessed a total of 4,321,668 shares valued at GH¢7,342,586,43 changing hands, compared with 3,377,277 shares, valued at GH¢3,487,641.41   in the preceding week.

GGBL  dominated both  volume and value  of trades for the week,  accounting for 46.28% and 40.85% of shares traded respectively.

The market ended the week with 6 advancers and 1 decliner as indicated on the table below.

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi remained flat for the week. It traded at GH¢11.0141/$, compared with GH¢11.0141/$ at week open, reflecting w/w and YTD depreciation of 0.00% and 22.14% respectively. This compares with YTD loss of 15.56% a year ago.        

The Cedi retreated against the GBP for the week. It traded at GH¢13.4031/£, compared with GH¢13.3370/£ at week open, reflecting w/w and YTD depreciations of 0.49% and 23.06% respectively. This compares with YTD depreciation of 13.11% a year ago.

The Cedi however strengthened against the Euro for the week. It traded at GH¢11.7499/€, compared with GH¢11.7698/€ at week open, reflecting w/w gain and YTD depreciation of 0.17% and 22.16% respectively. This compares with YTD loss of 12.96% a year ago.          

The Cedi lost some grounds against the Canadian Dollar for the week. It opened at GH¢8.0004/C$ but closed at GH¢8.0184/C$, reflecting w/w  and YTD depreciations of 0.22% and 21.15% respectively. This compares with YTD depreciation of 15.89% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢3,879.28 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢3,318.32 million raised in the previous week.

The 91-Day Bill settled at 18.53% p.a from 20.00% p.a. last week whilst the 182-Day Bill settled at  21.27% p.a from 22.85% p.a. last week.

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

Source: Bank of Ghana

Source: Bank of Ghana

COMMODITY MARKET

Oil prices fell last week, reversing early gains as anticipation of a Federal Reserve meeting and concerns over weakening demand this year largely offset measures by major central banks to ease market fears of a looming banking crisis. Brent futures traded at US$72.97 a barrel, compared to US$82.78 at week open, reflecting w/w and YTD losses of 11.85% and 15.06% respectively.

Gold hit 11-month highs, breaking from the clutches of mid-$1,900, as the U.S. banking crisis drove more investors towards safe havens at week end. Gold settled at US$1,973.50, from US$1,867.20 last week, reflecting w/w and YTD appreciations of 5.69% and 8.07% respectively.

The price of Cocoa recorded an increase for the week. Cocoa traded at US$2,738.00  per tonne on Friday, from US$2,704.00 last week, reflecting  w/w and YTD gains of 1.26% and 5.31% respectively.

International Commodity Prices

 Source: www.investing.com

BUSINESS TERM OF THE WEEK

Gross Margin: Gross margin is the amount of money a company has left after subtracting all direct costs of producing or purchasing the goods or services it sells. The higher the gross margin, the more money the company is able to contribute to its indirect costs and other expenses like interest.

Source: https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/gross-margin

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.