MACROECONOMIC INDICATORS

2020 GDP 4.9%
Projected GDP for 2020
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.82%
Inflation for May, 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 losses in 3 tickers. The GSE Composite Index (GSE CI) shed 7.36 points (0.84%) to close at 1,921.29 points, compared to 1,928.66 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 14.88%. The GSE Financial Stocks Index also shed 34.01 points to close the week at 1,766.26 points, translating into YTD loss of -12.55%.

Market capitalization decreased by 0.63% for the week from GH¢53,414.27 million at the close of the previous week to GH¢53,172.38 million at the close of the week. This represents YTD decline of 6.37%.
There was less activity on the market compared with that of the preceding week. A total of 1,292,108 shares, valued at GH¢4,209,534.48 changed hands for the week, compared with 5,554,537 shares valued at GH¢7,351,198.96 recorded in the preceding week. GCB dominated both volume and value of shares traded for the week respectively. GCB accounted for 77.52% (1,001,705 shares) of total volume of shares traded and 88.06% (GH¢3,706,726.75) of total value of shares traded for the week.
The market closed on Friday with three laggards and three gainers. Ecobank Transnational Incorporated led the laggards for the week after closing trading at GH¢0.06 from GH¢0.07 (-14.29%) at week open. Aluworks Limited meanwhile led the gainers for the week after closing GH¢0.11 from GH¢0.10 (+10%) as at week open.
Thirty-four (34) 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. -51.46%
Intraveneous Infusion Ltd -40.00%
GCB Bank Ltd. -29.41%
Republic Bank (Ghana) Ltd. -28.57%
CAL -22.47%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.6521/$ on Friday, compared with GH¢5.6500/$ at week open, reflecting w/w and YTD depreciations of 0.04% and 2.09% respectively against the USD. This compares with YTD depreciation of 8.23% a year ago.

The Cedi meanwhile strengthened against the Euro for the week. It traded at GH¢6.3167/€, compared with GH¢6.3546/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.60% and 1.67% respectively against the Euro. This compares with YTD depreciation of 7.44% a year ago.
The Cedi also strengthened against the GBP on the week. It traded at GH¢6.9866/£, compared with GH¢7.0704/£ at week open, reflecting w/w and YTD appreciations of 1.20% and 4.72% respectively against the GBP. This compares with YTD depreciation of 7.58% a year ago.

The Cedi meanwhile weakened against the CAD on the week. It opened trading at GH¢4.1551/C$ but closed at GH¢4.1623/C$, reflecting w/w depreciation and YTD appreciation of 0.17% and 2.54% respectively against the CAD. This compares with YTD depreciation of 11.03% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01/01/20 15/06/20 19/06/20
USD/GHS 5.5337 5.6500 5.6521 -0.04 -2.09
GBP/GHS 7.3164 7.0704 6.9866 1.20 4.72
EUR/GHS 6.2114 6.3546 6.3167 0.60 -1.67
CAD/GHS 4.2681 4.1551 4.1623 -0.17 2.54
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢926.72 million in the week under review across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,193.71 million raised in the previous week.
The 91–Day and 182-Day Bills added 8bps and 2bps to settle at 14.01%, and 14.06% respectively.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD
%
01/01/20 12/06/20 19/06/20
91 Day TB 14.70 13.93 14.01 0.57 -4.68
182 Day TB 15.15 14.04 14.06 0.14 -7.21
364 Day TB 17.90 16.85 16.85 0.00 -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

COMMODITY MARKET
Gold prices closed higher for the week after Goldman Sachs revised upward its 12-month forecast of the yellow metal by 11% based on the lower-for-longer U.S. rate regime and currency debasement worries. Gold futures settled at US$1,753.00 per ounce on Friday, reflecting w/w and YTD gains of 0.90% and 15.26% respectively.

Oil prices traded upwards for the week supported by signs of a demand recovery and output cuts. Brent futures traded at US$42.19 a barrel on Friday, reflecting w/w gain and YTD loss of 8.93% and 36.08% respectively.

Prices of Cocoa traded lower for the week. Cocoa futures settled at US$2,387.00 per tonne on Friday, reflecting w/w and YTD losses of 0.38% and 6.02% respectively.

International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01/01/20 15/06/20 19/06/20
Brent crude oil (USD/bbl)
66.00 38.73 42.19
8.93
-36.08
Gold (USD/t oz.)
1,520.95 1,737.30 1,753.00
0.90
15.26
Cocoa (USD/MT)
2,540.00 2,396.00 2,387.00
-0.38
-6.02
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Accrued Interest: In accounting, accrued interest refers to the amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out. Accrued interest can either be in the form of accrued interest revenue, for the lender, or accrued interest expense, for the borrower.
The term accrued interest can also refer to the amount of bond interest that has accumulated since the last time a bond interest payment was made.
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.