STOCK MARKET REVIEW

The Ghana Stock Exchange advanced for the second consecutive week as some financial counters posted better-than-expected gains at the closing of the trading week.

The GSE Composite Index (GSE-CI) gained 36.25 points (+0.59%) for the week to close at 6,210.28 points, reflecting a year-to-date (YTD) gain of 27.04%.  The GSE Financial Index (GSE-FI) rose by 35.72 points (+1.09%) for the week to close at 3,323.44 points, reflecting a year-to-date (YTD) gain of 39.59%. 

Market capitalization inched up by 0.40% to close the week at GH¢136,844.81 million, from GH¢136,300.96 million at the close of the previous week. This reflects a YTD gain of 22.89%.

The week recorded a total of 5,904,756 shares, valued at GH¢27,819,994.95, compared with 3,341,984 shares valued at GH¢21,884,945.51 that were traded in the preceding week.

MTNGH dominated the volume of trades for the week, while GCB dominated the value of trades, accounting for 43.77% and 36.57% of the volume and value of shares traded, respectively.

The market ended the week strong with 8 gainers and 3 decliners as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi appreciated marginally against the USD for the week. It traded at GH¢10.3001/$, compared with GH¢10.3500/$ at week open, reflecting w/w and YTD appreciations of 0.48% and 42.72% respectively. This compares with a depreciation of 17.77% a year ago.           

The Cedi returned to its winning ways against GBP. It traded at GH¢13.8736/£, compared with GH¢14.0766/£ at week open, reflecting w/w and YTD gains of 1.46% and 32.63% respectively. This compares with depreciation of 17.14% a year ago.

The Cedi recovered against the Euro for the week. It traded at GH¢11.8725/€, compared with GH¢11.9673/€ at week open, reflecting w/w and YTD appreciations of 0.80% and 28.15% respectively. This compares with a depreciation of 15.03% a year ago.            

The Cedi improved against the Canadian Dollar for the week. It opened at GH¢7.6273/C$ and closed at GH¢7.5005/C$, reflecting w/w and YTD gains of 1.69% and 36.13% respectively. This compares with a depreciation of 14.52% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢2,952.91 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compares with GH¢7,194.07 million raised in the previous week.       

The 91-Day Bill settled at 14.70% p.a. from 14.70% p.a. last week, whilst the 182-Day Bill settled at 15.25% p.a. from 15.25% p.a. last week. The 364-Day Bill settled at 15.69% p.a. from 15.74% 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 rose by $2-5 per barrel, as fears intensified over possible supply constraints from the escalating Israel-Iran conflict. Brent futures traded at US$75.48 a barrel, compared to US$74.23 at week open, reflecting w/w and YTD appreciations of 1.68% and 1.13% respectively.

Gold prices slipped lower as the Federal Reserve’s hawkish stance strengthened the dollar and pressured bullion. Gold settled at US$3,385.70, from US$3,452.80 last week, reflecting w/w loss and YTD appreciation of 1.94% and 28.20% respectively.

The price of Cocoa declined for the week. Cocoa traded at US$8,459.00 per tonne on Friday, from US$9,768.00 last week, reflecting w/w and YTD losses of 13.40% and 26.73% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Qualified Institutional Placement: It is a way for listed companies to raise capital without having to submit legal paperwork to market regulators. It is common in India and other Southeast Asian countries. QIPs were created to avoid dependency on foreign resources for raising capital. Qualified institutional buyers (QIBs) are the only entities allowed to purchase QIPs

Source:

https://www.investopedia.com/terms/t/tax_wedge.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.