MACROECONOMIC INDICATORS

2019 GDP	6.0%
Projected GDP for 2019	7.1%
BoG Policy Rate – January 2020	16.0%
Weekly Interbank Interest Rate	16.1%
Inflation for January, 2020	7.8%
End Period Inflation Target - 2020	8.0%
Budget Deficit (% GDP) – Nov, 2019	4.8%
2019 Budget Deficit Target (%GDP)	4.5%
Public Debt (billion GH¢)  – Nov, 2019	214.9
Debt to GDP Ratio – Nov, 2019	62.1%

STOCK MARKET REVIEW

The stock market closed stronger in the review week on the back of gains in 2 counters. The GSE Composite Index (GSE CI) added 0.84 points (0.04%) to close at 2,204.47 points, compared to 2,203.63 points at the  close of the previous week. This translates into a year-to-date (YTD) loss of 2.33%. The GSE Financial Stocks Index also added 1.55 points to close the week at 2,014.33 points, representing YTD loss of 0.26%.

Market capitalization meanwhile increased marginally by 0.01% for the week from GH¢56,625.40 million at the close of the previous week to GH¢56,631.51 million at the close of the week. This represents YTD decline of 0.28%.   

There was significant activity on the market compared with the preceding week. A sum of  18,853,538 shares, valued at GH¢13,002,466.17 changed hands for the week, compared with total volume and value of 4,621,673 and GH¢3,130,797.17 recorded in the preceding week respectively. MTN Ghana dominated both volume and value of shares traded for the week respectively. It accounted for 96.66% (18,223,064 shares) of total volume of shares and 93.90% (GH¢12,209,557.88) of total value of shares traded for the week.

The market closed on Friday with 2 gainers and 1 laggard for the week. SIC Insurance Company Ltd. led the gainers with 11.11%  increase in price. Its share price closed at GH¢0.10 per share from GH¢0.09 at week open. Intravenous Infusions Ltd, the sole laggard, closed at GH¢0.03 (-25.00%) from GH¢0.04. Thirty-seven (37) 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
Inc. SIC Insurance Company Ltd.	25.00%
Ecobank Transnational	12.50%
Cal Bank Ltd	6.74%
Ghana Oil Company Limited	4.12%
Standard Chartered Bank Gh. Ltd.	3.75%
Worst Performing Stocks:
Unilever Ghana Ltd.	-14.60%
Access Bank Ghana PLC	-10.00%
GCB Bank Ltd.	-4.90%
MTN Ghana Ltd.	-4.29%
Guinness Ghana Breweries Ltd.	-4.14%

 

CURRENCY MARKET

The Cedi strengthened against the USD for the sixth straight week. It traded at GH¢5.2829/$ on Friday, compared with GH¢5.2976/$ at week open, reflecting w/w and YTD appreciations of 0.28% and 4.75% respectively against the USD. This compares with YTD depreciation of 4.04% a year ago.

The Cedi likewise strengthened against the Euro on the week. It traded at GH¢5.7366/€, compared with GH¢5.7511/€ at week open, reflecting w/w and YTD appreciations of 0.25% and 8.28% respectively against the Euro. This compares with YTD depreciation of 3.15% a year ago.

The Cedi again strengthened against the GBP on the week. It traded at GH¢6.8541/£, compared with GH¢6.8938/£ at week open, reflecting w/w and YTD appreciations of 0.58% and 6.74% respectively against the GBP. This compares with YTD depreciation of 5.66% a year ago.

The Cedi meanwhile weakened against the CAD for the week. It opened at GH¢3.9968/C$ but closed at GH¢4.0005/C$, reflecting w/w depreciation and YTD appreciation of 0.09% and 6.69% respectively against the CAD. This compares with YTD depreciation of 7.13% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair	Year Open	Week Open	Week Close	Change %	YTD %
	01/01/20	17/02/20	21/02/20
USD/GHS	5.5337	5.2976	5.2829	0.28	4.75
GBP/GHS	7.3164	6.8938	6.8541	0.58	6.74
EUR/GHS	6.2114	5.7511	5.7366	0.25	8.28
CAD/GHS	4.2681	3.9968	4.0005	-0.09	6.69

Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a total of GH¢743.63 million in the week under review across the 91-day and 182-day treasury bills. This compared with GH¢1,066.16 million raised in the previous week.

The 91–day bill added 5bps to settle at 14.75% whilst the 182-day bill shed 1bp to close at 15.17%.

Please see below for more details.

Security	Year Open	Previous Yield %	Current Yield %	Chg      %	YTD      %
	01/01/20	14/02/20	21/02/20
91 day TB	14.70	14.70	14.75	0.39	0.39
182 day TB	15.15	15.18	15.17	-0.06	0.17
364 day TB	17.90	17.81	17.81	0.00	-0.51
2-Yr FXR TN	20.95	20.20	20.20	0.00	-3.58
3-Yr Bond	19.7	20.75	20.75	0.00	5.33
5-Yr Bond	19.50	19.50	19.50	0.00	0.00
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 posted significant gains for the week as investors intensify demand for safe-haven as the CoVid-19 spreads outside of China. Gold futures settled at US$1,644.60 per ounce on Friday, reflecting w/w and YTD gains of 3.91% and 8.13% respectively.

Oil prices traded lower on Friday following a spike in the CoVid-19 contagion. The commodity however posted a second straight weekly gain. Brent futures traded at US$58.50 a barrel on Friday, reflecting w/w gain and YTD loss of 2.06% and 11.36% respectively.

Prices of Cocoa tallied gains for the fourth straight week. Cocoa futures settled at US$2,922.00 per tonne on Friday, reflecting w/w and YTD gains of 0.62% and 15.04% respectively.

International Commodity Prices

Commodities	Year Open	Week Open	Week Close	Chg %	YTD  %
	01/01/20	17/02/20	21/02/20
Brent crude oil (USD/bbl)	66.00	57.32	58.50	2.06	-11.36
Gold (USD/t oz.)	1,520.95	1,582.70	1,644.60	3.91	8.13
Cocoa (USD/MT)	2,540.00	2,904.00	2,922.00	0.62	15.04

Source: www.investing.com

 

BUSINESS TERM OF THE WEEK

Liquidate: 1. To convert to cash.

2. To sell all of a company's assets, pay outstanding debts, and distribute the remainder to shareholders, and then go out of business.

3. A broker's sale of his/her customer's securities after the customer failed to meet a margin call.

Sourcewww.investorwords.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).

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.