STOCK MARKET REVIEW

The Ghana Stock Exchange (GSE) bolstered its strong run at week’s end on the back of price gains by seven (7) counters.

The GSE Composite Index (GSE-CI) inched up by 0.38 points (+0.004%) for the week to close at 8,755.97 points, reflecting a year-to-date (YTD) gain of 79.11%.  

The GSE Financial Index (GSE-FI) also declined by 13.89 points (-0.30%) for the week to close at 4,628.69 points, reflecting a year-to-date (YTD) gain of 94.42%. 

Market capitalization grew marginally by 0.005% to close the week at GH¢171,858.62 million, from GH¢171,850.61 million at the close of the previous week. This reflects a YTD gain of 54.33%.

The week recorded a total of 37,160,341 shares, valued at GH¢157,509,406.22, compared with 13,702,216 shares valued at GH¢53,758,059.95 that were traded in the preceding week.

MTNGH dominated both the volume and value of trades for the week, accounting for 90.83% and 83.70% of the volume and value of shares traded, respectively.

The market closed the week with 7 advancers and 1 laggard as indicated below:

 Source: Ghana Stock Exchange

CURRENCY MARKET

The Cedi strengthened against the USD for the week. It traded at GH¢11.1001/$, compared with GH¢11.4900/$ at week open, reflecting w/w and YTD appreciations of 3.51% and 32.43% respectively. This compares with a depreciation of 19.18% a year ago.     

The Cedi also appreciated against the GBP for the week. It traded at GH¢14.9900/£, compared with GH¢15.3536/£ at week open, reflecting w/w and YTD gains of 2.43% and 22.75% respectively. This compares with a depreciation of 18.10% a year ago.

The Cedi improved against the Euro for the week. It traded at GH¢13.0734/€, compared with GH¢13.4674/€ at week open, reflecting w/w and YTD appreciations of 3.01% and 16.37% respectively. This compares with a depreciation of 14.33% a year ago.     

The Cedi gained some ground against the Canadian Dollar for the week. It opened at GH¢8.3419/C$ and closed at GH¢8.1198/C$, reflecting w/w and YTD gains of 2.73% and 25.75% respectively. This compares with a depreciation of 11.52% a year ago.

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

The government raised a sum of GH¢3,912.12 million for the week across the 91-Day, 182-Day, and 364-Day Treasury Bills. This compares with GH¢5,382.48 million raised in the previous week.       

The 91-Day Bill settled at 11.09% p.a. from 11.09% p.a. last week, whilst the 182-Day Bill settled at 12.52% p.a. from 12.44% p.a. last week. The 364-Day Bill settled at 12.94% p.a. from 12.91% 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 retreated, partly driven by spill over from a pullback in precious metals, even as escalating Russia–Ukraine tensions left markets grappling with supply disruption fears. Brent futures traded at US$60.24 a barrel, compared to US$60.47 at week's open, reflecting w/w and YTD depreciations of 0.38% and 19.29% respectively.

Gold surged to record highs as investors flocked to safe-haven assets amid escalating geopolitical tensions and a weakening U.S. dollar, extending a powerful year-end rally in precious metals. Gold settled at US$4,552.70, from US$4,387.30 last week, reflecting w/w and YTD appreciations of 3.77% and 72.39% respectively.

The price of Cocoa grew for the week. Cocoa traded at US$5,953.00 per tonne on Friday, from US$5,848.00 last week, reflecting w/w gain and YTD loss of 1.85% and 48.44% respectively.

International Commodity Prices

Source: www.investing.com

INVESTMENT TERM OF THE WEEK

Lemon Problem: It arises regarding the value of an investment or product due to asymmetric information possessed by the buyer and the seller. Asymmetrical information means that buyers and sellers don't possess equal information required to make an informed decision regarding a transaction

Source:

https://www.investopedia.com/terms/l/lemons-problem.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.