STOCK MARKET REVIEW

The Ghana Stock Exchange closed the week lower on the back of pric declines by three (3) counters.

The GSE Composite Index (GSE-CI) lost 354.10 points (-5.28%) for the week to close at 6,353.54 points, reflecting a year-to-date (YTD) gain of 29.97%.  The GSE Financial Index (GSE-FI) however grew by 6.78 points (+0.21%) for the week to close at 3,175.26 points, reflecting a year-to-date (YTD) gain of 33.37%. 

Market capitalization slid by 3.07% to close the week at GH¢139,299.17 million, from GH¢143,712.41 million at the close of the previous week. This reflects a YTD gain of 25.09%.

The week recorded a total of 2,318,985 shares valued at GH¢17,816,045.84, compared with 23,758,579 shares, valued at GH¢102,566,434.15 traded in the preceding week.

MTNGH dominated the volume of trades for the week while New Gold Exchange Traded Fund dominated the value of trades for the week accounting for 82.10% and 61.29% of the volume and value of shares traded respectively.

The market ended the week with 6 advancers and 3 laggards, as indicated in the table below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi extended its month-long winning run against the USD for the week. It traded at GH¢12.3200/$, compared with GH¢10.9500/$ at week open, reflecting w/w and YTD appreciations of 12.51% and 34.25% respectively. This compares with a depreciation of 14.87% a year ago.       

The Cedi also extended its month-long gains against the GBP for the week. It traded at GH¢16.3296/£, compared with GH¢14.7787/£ at week open, reflecting w/w and YTD gains of 10.49% and 24.51% respectively. This compares with depreciation of 14.89% a year ago.

The Cedi continued to strengthen against the Euro for the week. It traded at GH¢12.4113/€, compared with GH¢13.7223/€ at week open, reflecting w/w and YTD appreciations of 10.56% and 22.58% respectively. This compares with a depreciation of 13.32% a year ago.           

The Cedi again appreciated against the Canadian Dollar for the week. It opened at GH¢8.8045/C$ and closed at GH¢7.9586/C$, reflecting w/w and YTD gains of 10.63% and 28.30% respectively. This compares with a depreciation of 11.76% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢5,972.37 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢2,762.35 million raised in the previous week.       

The 91-Day Bill settled at 14.93% p.a. from 15.11% p.a. last week whilst the 182-Day Bill settled at 15.68% p.a. from 15.55% p.a. last week. The 364-Day Bill settled at 16.00% p.a. from 16.79% 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

Source: Bank of Ghana

COMMODITY MARKET

Oil prices traded marginally lower, as investors mostly stayed on the sidelines ahead of a closely watched OPEC+ meeting that could provide key signals on future supply levels. Brent futures traded at US$64.78 a barrel, compared to US$65.41 at week open, reflecting w/w and YTD depreciations of 0.96% and 13.21% respectively.

Gold prices rose as safe-haven demand was elevated by a sell-off in U.S. Treasuries amid heightened concerns over high government debt. Gold settled at US$3,365.80, from US$3,187.20 last week, reflecting w/w and YTD appreciations of 5.60% and 27.44% respectively.

The price of Cocoa decreased for the week. Cocoa traded at US$9,764.00 per tonne on Friday, from US$10,898.00 last week, reflecting w/w and YTD losses of 10.41% and 15.43% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Currency Peg: It is a policy in which a national government or central bank sets a fixed exchange rate for its currency with a foreign currency or a basket of currencies and stabilizes the exchange rate between countries. The currency exchange rate is the value of one currency compared to another.

Source:

https://www.investopedia.com/terms/c/currency-peg.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.