MACROECONOMIC INDICATORS
Q4, 2020 GDP Growth 3.3%
Average GDP Growth for 2020 0.4%
2021 Projected GDP Growth 5.0%
BoG Policy Rate 13.50%
Weekly Interbank Interest Rate 13.58%
Inflation for Apr, 2021 8.5%
End Period Inflation Target - 2021 8.0%
Budget Deficit (% GDP) – Mar, 2021 2.6%
2021 Budget Deficit Target (%GDP) 9.5%
Public Debt (billion GH¢) – Mar, 2021 304.6
Debt to GDP Ratio – Mar, 2021 70.2%

STOCK MARKET REVIEW
The Ghana Stock Exchange closed stronger for the week supported by gains in 8 counters. The GSE Composite Index (GSE CI) gained 4.75 points (+0.20%) to close at 2,421.11 points reflecting year-to-date (YTD) gain of 24.70%. The GSE Financial Stocks Index (GSE FI) also advanced by 4.31 points (+0.23%) to close at 1,902.90 points reflecting YTD gain of 6.74%.

Market capitalization ended the week at GH¢59,333.16, representing 0.08% gain from GH¢59,283.27 million at the close of the previous week. This reflects YTD increase of 9.12%.
Trading activity improved for the week relative to the prior week. A total of 20,620,856 shares valued at GH¢19,535,175.20 changed hands for the week, compared with 15,784,301 shares, valued at GH¢25,181,377.72 in the preceding week.
Cal Bank PLC dominated volume of trades for the week, accounting for 46.60% of total shares traded. MTN GH on the other hand dominated total trades by value, accounting for 49.03% of total value of shares traded.
The market closed the week with 8 price advancers and 1 decliner as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/ Loss
Pesewa One PLC 0.62 0.65 4.84%
Fan Milk Ltd. 1.26 1.32 4.76%
Societe Generale Ghana PLC 0.84 0.87 3.57%
Ghana Oil Company Limited 1.51 1.55 2.65%
Standard Chartered Bank PLC 18.20 18.50 1.65%
Enterprise Group PLC 1.52 1.53 0.66%
Total Petroleum Ghana PLC 3.25 3.27 0.62%
GCB Bank Ltd. 5.20 5.22 0.38%
Cal Bank PLC 0.80 0.73 -8.75%

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
MTN Ghana PLC. 56.25%
Guinness Ghana Breweries Ltd. 43.33%
Societe Generale Ghana PLC 35.94%
GCB Bank PLC 28.89%
Fan Milk PLC 22.22%

Worst 5 Performing Stocks:
Ecobank Ghana Ltd. -2.78%
Aluworks Limited -9.09%
Ecobank Transnational Inc. -12.50%
SIC Insurance Company Ltd. -12.50%
Unilever Ghana PLC -60.19%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.7416/$ on Friday, against GH¢5.7315/$ at week open, reflecting w/w depreciation and YTD appreciation of 0.18% and 0.32% respectively against the USD. This compares with YTD depreciation of 1.54% a year ago.
The Cedi also weakened against the GBP. It traded at GH¢8.1408/£, compared with GH¢8.1201/£ at week open, reflecting w/w and YTD depreciations of 0.25% and 3.27% respectively against the GBP. This compares with YTD appreciation of 5.75% a year ago.
The Cedi again weakened against the Euro for the week. It traded at GH¢6.9947/€, compared with GH¢6.9863/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.12% and 1.00% respectively against the Euro. This compares with YTD depreciation of 0.47% a year ago.
The Cedi however strengthened against the CAD on the week. It opened at GH¢4.7554/C$ but closed at GH¢4.7537/C$, reflecting w/w appreciation and YTD depreciation of 0.04% and 4.72% respectively against the CAD. This compares with YTD appreciation of 4.90% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 24-05-21 28-05-21
USD/GHS 5.7602 5.7315 5.7416 -0.18 0.32
GBP/GHS 7.8742 8.1201 8.1408 -0.25 -3.27
EUR/GHS 7.0643 6.9863 6.9947 -0.12 1.00
CAD/GHS 4.5292 4.7554 4.7537 0.04 -4.72
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,817.56 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢628.57 million raised in the previous week.
The 91-Day and 364-Day Bills gained 2bps and 7bps each to settle at 12.78% p.a. and 16.49% p.a respectively. The 182-Day Bill however shed 3bps to settle at 13.51% p.a.
The table and graph below show Primary Market yields as at May 28, 2021.
Security Year Open Previous Yield % Current Yield % WoW Chg (%) YTD Chg (%)
01-01-21 21-05-21 28-05-21
91 Day TB 14.10 12.76 12.78 0.18 -9.33
182 Day TB 14.15 13.54 13.51 -0.26 -4.55
364 Day TB 16.96 16.42 16.49 0.41 -2.81
2-Yr FXR TN 18.50 17.60 17.60 0.00 -4.86
3-Yr Bond 19.25 17.70 17.70 0.00 -8.05
5-Yr Bond 19.85 18.80 18.80 0.00 -5.29
6-Yr Bond 19.50 19.25 19.25 0.00 -8.33
7-Yr Bond 20.50 20.50 20.50 0.00 0.00
10-Yr Bond 19.80 19.80 19.80 0.00 0.00
15-Yr Bond 19.75 19.75 19.75 0.00 0.00
20-Yr Bond 20.20 20.20 20.20 0.00 0.00
Source: Bank of Ghana

COMMODITY MARKET
Oil prices tallied gains for the week in anticipation of higher Memorial Day gasoline consumption . Brent futures traded at US$69.63 a barrel on Friday, reflecting w/w and YTD gains of 4.80% and 34.42% respectively.
Gold prices were also up for the week supported by soaring U.S. inflation data. Gold futures settled at US$1,905.30 per ounce on Friday, reflecting w/w and YTD gains of 1.25% and 0.54% respectively.
Prices of Cocoa also softened for the second straight week. Cocoa futures settled at US$2,412.00 per tonne on Friday, reflecting w/w and YTD losses of 1.79% and 7.34% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg % YTD
%
01-01-21 24-05-21 28-05-21
Brent crude oil (USD/bbl)
51.80 66.44 69.63
4.80
34.42

Gold (USD/t oz.)
1,895.10 1,881.85 1,905.30
1.25
0.54

Cocoa (USD/MT)
2,603.00 2,456.00 2,412.00
-1.79
-7.34
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Debt Trap: A situation in which a debt is difficult or impossible to repay, typically because high interest payments prevent repayment of the principal.
Source: https://www.lexico.com/definition/debt_trap

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).

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.