2019 GDP 6.5%
Projected GDP for 2019 7.1%
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.82%
Inflation for Apr, 2020 11.3%
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 laggards outpacing gainers. The GSE Composite Index (GSE CI) shed 31.97 points (1.17%) to close at 1,928.66 points, compared to 1,960.63 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 14.55%. The GSE Financial Stocks Index shed 36.53 points to close the week at 1,800.26 points, translating into YTD loss of 10.86%.
Market capitalization decreased by 0.44% for the week from GH¢53,745.96 million at the close of the previous week to GH¢53,414.27 million at the close of the week. This represents YTD decline of 5.95%
There was less activity on the market compared with that of the preceding week. A total of 5,554,537 shares, valued at GH¢7,351,198.96 changed hands for the week, compared with 17,567,772 shares valued at GH¢11,727,955.70 recorded in the preceding week. MTNGH and GCB dominated both volume and value of shares traded for the week respectively. MTNGH accounted for 58.53% (3,251,039 shares) of total volume of shares traded and GCB accounted for 56.83% (GH¢4,177,392.20) of total value of shares traded for the week.
The market closed on Friday with eight laggards and no gainer. Republic Bank (Ghana) Ltd. led the laggards for the week after closing trading at GH¢0.40 from GH¢0.49 (-18.37%) at week open.
Thirty-two (32) 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%
Dannex Ayrton Starwin Plc. 2.56%
SCB Preference Share 1.16%
Worst Performing Stocks:
Fan Milk Ltd. -49.27%
Intraveneous Infusion Ltd -40.00%
GCB Bank Ltd. -28.99%
Republic Bank (Ghana) Ltd. -28.57%
The Cedi weakened against the USD for the week. It traded at GH¢5.6500/$ on Friday, compared with GH¢5.6230/$ at week open, reflecting w/w and YTD depreciations of 0.48% and 2.06% respectively against the USD. This compares with YTD depreciation of 8.02% a year ago.
The Cedi meanwhile strengthened against the Euro for the week. It traded at GH¢6.3546/€, compared with GH¢6.3605/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.09% and 2.25% respectively against the Euro. This compares with YTD depreciation of 6.25% a year ago.
The Cedi also strengthened against the GBP on the week. It traded at GH¢7.0704/£, compared with GH¢7.1415/£ at week open, reflecting w/w and YTD appreciations of 1.00% and 3.48% respectively against the GBP. This compares with YTD depreciation of 6.58% a year ago.
The Cedi likewise strengthened against the CAD for the week. It opened trading at GH¢4.1927/C$ but closed at GH¢4.1551/C$, reflecting w/w and YTD appreciations of 0.90% and 2.72% respectively against the CAD. This compares with YTD depreciation of 9.72% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD %
01/01/20 08/06/20 12/06/20
USD/GHS 5.5337 5.6230 5.6500 -0.48 -2.06
GBP/GHS 7.3164 7.1415 7.0704 1.00 3.48
EUR/GHS 6.2114 6.3605 6.3546 0.09 -2.25
CAD/GHS 4.2681 4.1927 4.1551 0.90 2.72
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢1,193.71 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢921.23 million raised in the previous week.
The 91–Day, 182-Day and 364-Day Bills shed 2bps, 2bps and 3bps to settle at 13.93%, 14.04% and 16.85% respectively.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD %
01/01/20 05/06/20 12/06/20
91 Day TB 14.70 13.95 13.93 -0.16 -5.22
182 Day TB 15.15 14.06 14.04 -0.15 -7.34
364 Day TB 17.90 16.88 16.85 -0.21 -5.89
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 21.70 21.70 0.00 11.28
6-Yr Bond 21.00 21.00 21.00 0.00 0.00
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
Gold recouped most of the losses posted in the previous week as fears of fresh outbreaks of CoVid-19 in the U.S. supported the yellow metal. Gold futures settled at US$1,737.30 per ounce on Friday, reflecting w/w and YTD gains of 3.23% and 14.22% respectively.
Oil prices traded lower for the week following a build up in U.S. Crude inventories and oncerns of a second wave of CoVid-19 infections in the U.S. Brent futures traded at US$38.73 a barrel on Friday, reflecting w/w and YTD losses of 8.44% and 41.32% respectively.
Prices of Cocoa posted marginal losses for the week. Cocoa futures settled at US$2,396.00 per tonne on Friday, reflecting w/w and YTD losses of 0.08% and 5.67% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg % YTD %
01/01/20 08/06/20 12/06/20
Brent crude oil (USD/bbl) 66.00 42.30 38.73 -8.44 -41.32
Gold (USD/t oz.) 1,520.95 1,683.00 1,737.30 3.23 14.22
Cocoa (USD/MT) 2,540.00 2,398.00 2,396.00 -0.08 -5.67
BUSINESS TERM OF THE WEEK
Accrued Expense: An accrued expense is an accounting term that refers to an expense that is recognized on the books before it has been paid; the expense is recorded in the accounting period in which it is incurred.. Because accrued expenses represent a company's obligation to make future cash payments, they are shown on a company's balance sheet as current liabilities; accrued expenses are also known as accrued liabilities. An accrued expense is only an estimate, and will likely differ from the supplier’s invoice that will arrive at a later date.
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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.