MACROECONOMIC INDICATORS
Q1’ 2020 GDP 4.9%
2020 Projected GDP 0.9%
BoG Policy Rate – July 2020 14.50%
Weekly Interbank Interest Rate 13.66%
Inflation for June, 2020 11.2%
End Period Inflation Target - 2020 8.0%
Budget Deficit (% GDP) – Jun, 2020 6.3%
2020 Budget Deficit Target (%GDP) 11.4%
Public Debt (billion GH¢) – Jun, 2020 258.4
Debt to GDP Ratio – Jun, 2020 67.0%
STOCK MARKET REVIEW
The stock market edged higher in the review week on the back of MTN Ghana Plc. The GSE Composite Index (GSE CI) added 8.83 points (+0.47%) to close at 1,886.47 points, reducing its year-to-date (YTD) loss to 16.42%. The GSE Financial Stocks Index (GSE FI) however trimmed 5.57 points (-0.32%) to close the week at 1,725.21 points, translating into YTD loss of 14.58%.
Market capitalization increased by 0.17% for the week from GH¢52,722.06 million at the close of the previous week to GH¢52,813.63 million at the close of the week. This represents YTD decline of 7.00%.
Trading activity for the week was significantly higher than that of the preceding week. A total of 10,379,606 shares, valued at GH¢6,257,758.30 changed hands for the week, compared with 233,527 shares valued at GH¢298,697.57 in the preceding week.
MTNGH dominated both volume and value of shares traded for the week accounting for 98.91% and 95.17% of total volume and value of shares traded respectively.
The market closed on Friday with an advancer and a decliner. MTNGH, the lone advancer, recorded a price increase of 1.75% to close at GH¢0.58 per share. CAL Bank Plc., the decliner for the week, moderated by 7.14% to close trading at GH¢0.65 per share.
Thirty-seven (37) counters remained flat at the closing bell on Thursday.
The graphs and table below highlight activity on the market.
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 Plc -26.97%
GCB Bank Plc -26.49%
CURRENCY MARKET
The Cedi weakened against the USD in the week under review. It traded at GH¢5.6797/$ on Friday, compared with GH¢5.6782/$ at week open, reflecting w/w and YTD depreciations of 0.03% and 2.57% respectively against the USD. This compares with YTD depreciation of 8.39% a year ago.
The Cedi also weakened against the GBP on the week. It traded at GH¢7.4075/£, compared with GH¢7.4050/£ at week open, reflecting w/w and YTD depreciations of 0.03% and 1.23% respectively against the GBP. This compares with YTD depreciation of 2.88% a year ago.
The Cedi however strengthened against the Euro on the week. It traded at GH¢6.6894/€, compared with GH¢6.6944/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.07% and 7.15% respectively against the Euro. This compares with YTD depreciation of 6.45% a year ago.
The Cedi again weakened against the CAD on the week. It opened trading at GH¢4.2265/C$ but closed at GH¢4.2430/C$, reflecting w/w depreciation and YTD appreciation of 0.39% and 0.59% respectively against the CAD. This compares with YTD depreciation of 11.00% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD %
01/01/20 03/08/20 07/08/20
USD/GHS 5.5337 5.6782 5.6797 -0.03 -2.57
GBP/GHS 7.3164 7.4050 7.4075 -0.03 -1.23
EUR/GHS 6.2114 6.6944 6.6894 0.07 -7.15
CAD/GHS 4.2681 4.2265 4.2430 -0.39 0.59
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢918.87 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢667.26 million raised in the previous week.
The 91–Day Treasury Bill remained flat at 13.99% whilst the 182-Day and 364-Day Treasury Bills added 3bps and 12bps to settle at 14.08% and 16.94% respectively.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD %
01/01/20 30/07/20 07/08/20
91 Day TB 14.70 13.99 13.99 -0.05 -4.83
182 Day TB 15.15 14.05 14.08 0.19 -7.06
364 Day TB 17.90 16.82 16.94 0.74 -5.34
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 19.50 19.50 0.00 -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 at US$2,058.40 on Thursday but pulled back on Friday following a strengthening of the USD occasioned by a positive jobs data for July. Gold futures settled at US$2,018.00 per ounce on Friday, reflecting w/w and YTD gains of 2.81% and 32.68% respectively.
Oil prices eased on Friday but tallied gains for the week. Brent futures traded at US$44.40 a barrel on Friday, reflecting w/w gain and YTD loss of 2.54% and 32.73% respectively.
Prices of Cocoa traded higher for the third straight week. Cocoa futures settled at US$2,546.00 per tonne, reflecting w/w and YTD gains of 6.08% and 0.24% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01/01/20 03/08/20 07/08/20
Brent crude oil (USD/bbl)
66.00 43.30 44.40
2.54
-32.73
Gold (USD/t oz.)
1,520.95 1,962.80 2,018.00
2.81
32.68
Cocoa (USD/MT)
2,540.00 2,400.00 2,546.00
6.08
0.24
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Relevant Cost: Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process. As an example, relevant cost is used to determine whether to sell or keep a business unit. The opposite of a relevant cost is a sunk cost, which has already been incurred regardless of the outcome of the current decision..
Source: www.investopedia.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).
Website: www.cidaninvestments.com
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.