MACROECONOMIC INDICATORS

Q1’ 2020 GDP 4.9%
Projected GDP for 2020
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.81%
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 5 tickers. The GSE Composite Index (GSE CI) shed 48.51 points (2.52%) to close at 1,872.79 points, compared to 1,921.29 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 17.03%. The GSE Financial Stocks Index also shed 27.01 points to close the week at 1,739.25 points, translating into YTD loss of 13.88%

Market capitalization decreased by 0.95% for the week from GH¢53,172.38 million at the close of the previous week to GH¢52,669.17 million at the close of the week. This represents YTD decline of 7.26%
There was significant activity on the market compared with that of the preceding week. A total of 36,078,708 shares, valued at GH¢23,565,696.31 changed hands for the week, compared with 1,292,108 shares valued at GH¢4,209,534.48 recorded in the preceding week. MTNGH dominated both volume and value of shares traded for the week respectively. MTNGH accounted for 97.20% (35,069,434 shares) of total volume of shares traded and 83.33% (GH¢19,637,649.34) of total value of shares traded for the week.
The market closed on Friday with five laggards and two gainers. Standard Chartered Bank Gh. Ltd. led the laggards for the week after closing trading at GH¢16.00 from GH¢17.00 (-5.88%) at week open. CalBank Plc. meanwhile led the gainers for the week after closing at GH¢0.75 from GH¢0.69 (+8.70%) at week open.
Thirty-three (33) 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%
Aluworks Limited 10.00%
SCB Preference Share 1.16%

Worst Performing Stocks:
Fan Milk Ltd. -51.46%
Intraveneous Infusion Ltd -40.00%
GCB Bank Ltd. -33.33%
Guinness Ghana Breweries Ltd. -28.99%
Total Petroleum Ghana Ltd. -21.67%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.6679/$ on Friday, compared with GH¢5.6521/$ at week open, reflecting w/w and YTD depreciations of 0.28% and 2.37% respectively against the USD. This compares with YTD depreciation of 8.35% a year ago.
The Cedi also weakened against the Euro for the week. It traded at GH¢6.3528/€, compared with GH¢6.3167/€ at week open, reflecting w/w and YTD depreciations of 0.57% and 2.23% respectively against the Euro. This compares with YTD depreciation of 7.86% a year ago.
The Cedi again weakened against the GBP on the week. It traded at GH¢6.9871/£, compared with GH¢6.9866/£ at week open, reflecting w/w depreciation and YTD appreciation of 0.01% and 4.71% respectively against the GBP. This compares with YTD depreciation of 7.60% a year ago.
The Cedi however strengthened against the CAD on the week. It opened trading at GH¢4.1623/C$ but closed at GH¢4.1335/C$, reflecting w/w and YTD appreciations of 0.70% and 3.26% respectively against the CAD. This compares with YTD depreciation of 12.00% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01/01/20 22/06/20 26/06/20
USD/GHS 5.5337 5.6521 5.6679 -0.28 -2.37
GBP/GHS 7.3164 6.9866 6.9871 -0.01 4.71
EUR/GHS 6.2114 6.3167 6.3528 -0.57 -2.23
CAD/GHS 4.2681 4.1623 4.1335 0.70 3.26
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢2,491.11 million in the week under review across the 91-Day, 182-Day and 365-Day Treasury Bills and a 5-Year Treasury Bond. This compared with GH¢926.72 million raised in the previous week.
The 91–Day Bill, 182-Day Bill and 5-Year Bond shed 16bps, 5bps and 245bps to settle at 13.85%, 14.01% and 19.25% respectively. The 364-Day Bill meanwhile added 4bps to settle 16.89%.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD %
01/01/20 19/06/20 26/06/20
91 Day TB 14.70 14.01 13.85 -1.12 -5.74
182 Day TB 15.15 14.06 14.01 -0.29 -7.48
364 Day TB 17.90 16.85 16.89 0.29 -5.62
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 19.25 -11.29 -1.28
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 as investors turn to safe haven investments following a new wave of Covid-19 outbreaks in the U.S. Gold futures settled at US$1,780.30 per ounce on Friday, reflecting w/w and YTD gains of 1.56% and 17.05% respectively.
Oil prices eased for the week weighed by new CoVid-19 infections and slower than expected demand. Brent futures traded at US$41.02 a barrel on Friday, reflecting w/w and YTD losses of 2.77% and 37.85% respectively.
Prices of Cocoa traded lower for the week. Cocoa futures settled at US$2,352.00 per tonne on Friday, reflecting w/w and YTD losses of 1.47% and 7.40% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01/01/20 22/06/20 26/06/20
Brent crude oil (USD/bbl)
66.00 42.19 41.02
-2.77 -37.85
Gold (USD/t oz.)
1,520.95 1,753.00 1,780.30
1.56
17.05
Cocoa (USD/MT)
2,540.00 2,387.00 2,352.00
-1.47
-7.40
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Book Value: 1. A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. This is how much the company would have left over in assets if it went out of business immediately. Since companies are usually expected to grow and generate more profits in the future, market capitalization is higher than book value for most companies. Since book value is a more accurate measure of valuation for companies which aren't growing quickly, book value is of more interest to value investors than growth investors.
Source: www.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).

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.