MACROECONOMIC INDICATORS
Q1’ 2020 GDP 4.9%
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.69%
Inflation for June, 2020 11.2%
End Period Inflation Target - 2020 8.0%
Budget Deficit (% GDP) – Mar, 2020 3.4%
2020 Budget Deficit Target (%GDP) 7.8%
Public Debt (billion GH¢) – Mar, 2020 236.1
Debt to GDP Ratio – Mar, 2020 59.3%

STOCK MARKET REVIEW
The stock market closed weaker in the review week on the back of losses in 3 tickers. The GSE Composite Index (GSE CI) shed 11.53 points (0.62%) to close at 1,861.24 points, compared to 1,872.77 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 17.54%. The GSE Financial Stocks Index also added 2.65 points to close the week at 1,722.38 points, translating into YTD loss of 14.72%.

Market capitalization decreased by 0.54% for the week from GH¢52,837.03 million at the close of the previous week to GH¢52,551.92 million at the close of the week. This represents YTD decline of 7.46%

There was increased activity on the market compared with that of the preceding week. A total of 30,693,707 shares, valued at GH¢17,523,060.96 changed hands for the week, compared with 6,580,784 shares valued at GH¢3,950,670.76 recorded in the preceding week. MTNGH dominated both volume and value of shares traded for the week. MTNGH accounted for 97.81% (30,023,037 shares) of total volume of shares traded and 97.40% (GH¢17,067,261.36) of total value of shares traded for the week.

The market closed on Friday with three laggards and a lone gainer. Ecobank Transnational Inc. led the laggards for the week after closing trading at GH¢0.06 from GH¢0.07 (-14.29%) at week open. GCB Bank Ltd. was the lone gainer for the week closing trading at GH¢3.74 from GH¢3.40 (+10.00%) at week open.

Thirty-six (36) 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
SIC Insurance Company Ltd. 25.00%
Camelot Ghana Ltd. 22.22%
Aluworks Limited 10.00%
Dannex Ayrton Starwin Plc. 2.56%
SCB Preference Share 1.16%

Worst Performing Stocks:
Fan Milk Ltd. -59.95%
Guinness Ghana Breweries Ltd. -28.99%
Republic Bank (Ghana) Ltd. -28.57%
Cal Bank Ltd -26.97%
GCB -26.67%

CURRENCY MARKET
The Cedi strengthened against the USD on the week. It traded at GH¢5.6709/$ on Friday, compared with GH¢5.6720/$ at week open, reflecting w/w appreciation and YTD depreciation of 0.02% and 2.42% respectively against the USD. This compares with YTD depreciation of 8.32% a year ago.
The Cedi also strengthened against the GBP on the week. It traded at GH¢7.1102/£, compared with GH¢7.1768/£ at week open, reflecting w/w and YTD appreciations of 0.94% and 2.90% respectively against the GBP. This compares with YTD depreciation of 6.08% a year ago.
The Cedi meanwhile weakened against the Euro for the week. It traded at GH¢6.4791/€, compared with GH¢6.4179/€ at week open, reflecting w/w and YTD depreciations of 0.95% and 4.13% respectively against the Euro. This compares with YTD depreciation of 6.51% a year ago.
The Cedi however weakened against the CAD on the week. It opened trading at GH¢4.1733/C$ but closed at GH¢4.1767/C$, reflecting w/w depreciation and YTD appreciation of 0.08% and 2.19% respectively against the CAD. This compares with YTD depreciation of 12.00% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01/01/20 13/07/20 17/07/20
USD/GHS 5.5337 5.6720 5.6709 0.02 -2.42
GBP/GHS 7.3164 7.1768 7.1102 0.94 2.90
EUR/GHS 6.2114 6.4179 6.4791 -0.95 -4.13
CAD/GHS 4.2681 4.1733 4.1767 -0.08 2.19
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢1,090.23 million in the week under review across the 91-Day and 182-Day Treasury Bills and a 6-Year Bond. This compared with GH¢933.19 million raised in the previous week.
The 91–Day Treasury Bill and 6-Year Bond both shed 12bps and 150bps to settle at 13.87% and 19.50% respectively. The 182-Day Treasury Bill on the contrary, added 4bps to settle at 14.06%.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD
%
01/01/20 10/07/20 17/07/20
91 Day TB 14.70 13.99 13.87 -0.85 -5.62
182 Day TB 15.15 14.02 14.06 0.27 -7.19
364 Day TB 17.90 16.92 16.92 0.00 -5.50
2-Yr FXR TN 20.95 18.75 18.75 0.00 -10.50
3-Yr Bond 19.7 18.85 18.85 0.00 -4.31
5-Yr Bond 19.50 19.25 19.25 0.00 -1.28
6-Yr Bond 21.00 21.00 19.50 -7.14 -7.14
7-Yr Bond 16.25 16.25 16.25 0.00 0.00
10-Yr Bond 19.8 19.8 19.8 0.00 0.00
15-Yr Bond 19.75 19.75 19.75 0.00 0.00
20-Yr Bond 20.2 20.2 20.2 0.00 0.00
Source: Bank of Ghana

COMMODITY MARKET
Gold prices closed higher for the sixth straight week supported by a new wave of Corona Virus infections and uncertainties over the prospect of a global economic recovery. Gold futures settled at US$1,812.65 per ounce on Friday, reflecting w/w and YTD gains of 0.60% and 19.18% respectively.
Oil prices closed lower for the week on news that OPEC and its allies will roll back 20% of its production cuts from August 2020. Brent futures traded at US$43.14 a barrel on Friday, reflecting w/w and YTD losses of 0.23% and 34.64% respectively.
Prices of Cocoa traded lower for the week. Cocoa futures settled at US$2,166.00 per tonne, reflecting w/w and YTD losses of 4.92% and 14.72% respectively.

International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01/01/20 13/07/20 17/07/20
Brent crude oil (USD/bbl)
66.00 43.24 43.14
-0.23 -34.64
Gold (USD/t oz.)
1,520.95 1,801.90 1,812.65
0.60
19.18
Cocoa (USD/MT)
2,540.00 2,278.00 2,166.00
-4.92
-14.72
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Fire Sale: A fire sale consists of selling goods or assets at heavily discounted prices. Fire sale originally referred to the discount sale of goods that were damaged by fire. Now it more commonly refers to any sale where the seller is in financial distress. In the context of the financial markets, a fire sale refers to a situation where securities are trading well below their intrinsic value, such as during prolonged bear markets.
Source: www.investopedia.com

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Disclaimer
The 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.