MACROECONOMIC INDICATORS

2019 GDP	6.2%
Projected GDP for 2019	7.1%
BoG Policy Rate – September 2019	16.0%
Weekly Interbank Interest Rate	15.2%
Inflation for September, 2019	7.6%
End Period Inflation Target - 2019	8.0%
Budget Deficit (% GDP) – July, 2019	3.9%
2019 Budget Deficit Target (%GDP)	4.5%
Public Debt (billion GH¢)  – July, 2019	205.6
Debt to GDP Ratio – July, 2019	59.4%

STOCK MARKET REVIEW

The stock market closed weaker for the week following losses in five counters. The GSE Composite Index (GSE CI) moderated by 11.52 points (-0.53%) to close at 2,161.65 points, compared to 2,173.65 points at the previous week’s close. This translates into a year-to-date (YTD) loss of 15.96%. The GSE Financial Stocks Index also shed 19.76 points (-1.07%) to close the week at 1,824.40 points, representing YTD loss of 15.29%.

Market capitalization eased by 0.21% for the week from GH¢55,760.26 million at the close of the preceding week to GH¢55,641.86 million. This represents YTD decline of 8.99%.   

There was significant increase in activity on the market compared with the preceding week. A total of 721,294 shares, valued at GH¢1,206,532.34 changed hands for the week, compared with total volume and value of 328,348 and GH¢304,657.88 recorded in the preceding week respectively. EGL dominated both volume and value of shares traded for the week. EGL accounted for 73.66% (531,290 shares) of total volume of shares traded and 74.86% (GH¢903,228.59) of total value of shares traded.

The market closed on Friday with five laggards and no advancer for the week. Enterprise Group Ltd led the laggards with a 14.21% decline in price. Its share price closed at GH¢1.63 per share from GH¢1.90 per share at week open. Twenty-eight (28) counters remained flat at the closing bell on Friday.

The graphs and table below highlight activity on the market during the week.

   

 

Best 5 & Worst 5 Performing Stocks
Best Performing Stocks:	YTD Return
Trust Bank Gambia Ltd	73.91%
Starwin Products Ltd.	50.00%
Aluworks Limited	25.00%
Ayrton Drug Manufacturing Ltd.	14.29%
GCB Bank Ltd.	12.18%
Worst Performing Stocks:
Ecobank Transnational Inc.	-46.67%
State Insurance Company	-44.44%
Ghana Oil Company Ltd	-43.91%
Fan Milk Ltd	-43.38%
Benson Oil Palm Plantation	-41.85%

 

 

CURRENCY MARKET

The Cedi recorded a marginal gain against the USD for the review week. It traded at GH¢5.3215/$ on Friday, compared with GH¢5.3218/$ at week open, reflecting w/w appreciation and YTD depreciation of 0.01% and 9.42% respectively against the USD. This compares with YTD depreciation of 7.85% a year ago.

The Cedi on the other hand weakened against the Euro for the week. It traded at GH¢5.9301/€, compared with GH¢5.8746/€ at week open, reflecting w/w and YTD depreciations of 0.94% and 7.03% respectively against the Euro. This compares with YTD depreciation of 3.75% a year ago.

The Cedi likewise weakened against the GBP for the week. It traded at GH¢6.7534/£, compared with GH¢6.9073/£ at week open, reflecting w/w and YTD depreciations of 2.23% and 10.66% respectively against the GBP. This compares with YTD depreciation of 4.52% a year ago.

The Cedi further weakened against the CAD for the week. It opened at GH¢4.0354/C$ but closed at GH¢4.0607/C$, reflecting w/w and YTD depreciations of 0.62% and 12.92% respectively against the CAD. This compares with YTD depreciation of 3.84% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair	Year Open	Week Open	Week Close	Change %	YTD  %
	01-01-19	14-09-19	18-10-19
USD/GHS	4.8200	5.3218	5.3215	0.01	-9.42
GBP/GHS	6.1711	6.7534	6.9073	-2.23	-10.66
EUR/GHS	5.5131	5.8746	5.9301	-0.94	-7.03
CAD/GHS	3.5359	4.0354	4.0607	-0.62	-12.92

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢667.27 million in the review week through the issuance of the 91-day, 182-day and 364-day treasury papers. This compares with GH¢600.76 million raised in the previous week.

The 91–day Treasury paper was flat at 14.69% whilst the 182–day Treasury bill shed 2bps to settle at 15.12%. The 364-day Treasury bill also shed 1bp to close at 17.90%.

Please see below for more details.

Security	Year Open	Previous Yield %	Current Yield %	Chg     %	YTD   %
	01-01-19	11-10-19	18-10-19
91 day TB	14.59	14.69	14.69	-0.01	0.66
182 day TB	15.03	15.14	15.12	-0.13	0.61
364 day TB	15.50	17.91	17.90	-0.04	15.51
2-Yr FXR TN	19.5	19.00	19.00	0.00	-2.56
3-Yr Bond	19.5	19.7	19.7	0.00	1.03
5-Yr Bond	16.50	19.50	19.50	0.00	18.18
6-Yr Bond	N/A	21.00	21.00	0.00	0.00
7-Yr Bond	16.25	16.25	16.25	0.00	0.00
10-Yr Bond	17.5	19.8	19.8	0.00	13.14
15-Yr Bond	19.75	19.75	19.75	0.00	0.00
20-Yr Bond	N/A	20.2	20.2	0.00	0.00

Source: Bank of Ghana

 

COMMODITY MARKET

Gold prices posted gains for the week. Gold futures added 0.36% for the week to settle at US$1,494.10 per ounce on Friday, reflecting YTD gain of 16.61%.

Oil prices closed lower for the week over demand concerns arising a slowdown in China’s third quarter economic growth. Brent futures traded at US$59.42 a barrel on Friday, reflecting w/w loss and YTD gain of 1.80% and 10.45% respectively.

Cocoa futures settled at US$2,486.00 per tonne on Friday, reflecting w/w loss and YTD gain of 0.80% and 2.90% respectively.

International Commodity Prices

Commodities	Year Open	Week Open	Week Close	Chg %	YTD  %
	01-01-19	14-10-19	18-10-19
Brent crude oil (USD/bbl)	53.8	60.51	59.42	-1.80	10.45
Gold (USD/t oz.)	1,281.30	1,488.70	1,494.10	0.36	16.61
Cocoa (USD/MT)	2,416.00	2,506.00	2,486.00	-0.80	2.90

Source: www.investing.com
 

BUSINESS TERM OF THE WEEK

Non-Contributory Plan: Pension plan which is completely funded by the employer, not the employee.

Source: www.investorwords.com

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).