MACROECONOMIC INDICATORS

Q1’ 2020 GDP 4.9%
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.72%
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 in positive territory in the review week on the back of gains in 3 tickers. The GSE Composite Index (GSE CI) gained 14.86 points (0.79%) to close at 1,887.65 points, compared to 1,872.79 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 16.37%. The GSE Financial Stocks Index however shed 13.92 points to close the week at 1,725.33 points, translating into YTD loss of 14.57%.

Market capitalization increased by 0.29% for the week from GH¢52,669.17 million at the close of the previous week to GH¢52,823.34 million at the close of the week. This represents YTD decline of 6.99%.
There was less activity on the market compared with that of the preceding week. A total of 359,324 shares, valued at GH¢218,704.97 changed hands for the week, compared with 36,078,708 shares valued at GH¢23,565,696.31 recorded in the preceding week. Intravenous Infusions Limited dominated volume of shares traded whilst Fan Milk Ltd dominated value of shares traded for the week. Intravenous Infusions Limited accounted for 37.89% (135,700 shares) of total volume of shares traded whilst Fan Milk Ltd accounted for 26.56% (GH¢57,775.00) of total value of shares traded for the week.
The market closed on Friday with three laggards and three gainers. Fan Milk Ltd led the laggards for the week after closing trading at GH¢1.75 from GH¢2.00 (--12.50%) at week open. MTN Ghana Ltd. meanwhile led the gainers for the week after closing at GH¢0.58 from GH¢0.56 (+3.57%) 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%
Aluworks Limited 10.00%
SCB Preference Share 1.16%

Worst Performing Stocks:
Fan Milk Ltd. -57.52%
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 was fairly stable against the USD for the week. It traded at GH¢5.6682/$ on Friday, compared with GH¢5.6679/$ at week open, reflecting w/w and YTD depreciations of 0.01% and 2.37% respectively against the USD. This compares with YTD depreciation of 8.36% a year ago.
The Cedi weakened against the Euro for the week. It traded at GH¢6.3723/€, compared with GH¢6.3528/€ at week open, reflecting w/w and YTD depreciations of 0.31% and 2.53% respectively against the Euro. This compares with YTD depreciation of 6.57% a year ago.
The Cedi also weakened against the GBP on the week. It traded at GH¢7.0663/£, compared with GH¢6.9871/£ at week open, reflecting w/w depreciation and YTD appreciation of 1.12% and 3.54% respectively against the GBP. This compares with YTD depreciation of 6.17% a year ago.
The Cedi further weakened against the CAD on the week. It opened trading at GH¢4.1335/C$ but closed at GH¢4.1748/C$, reflecting w/w depreciation and YTD appreciation of 0.99% and 2.23% respectively against the CAD. This compares with YTD depreciation of 11.86% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01/01/20 29/06/20 03/07/20
USD/GHS 5.5337 5.6679 5.6682 -0.01 -2.37
GBP/GHS 7.3164 6.9871 7.0663 -1.12 3.54
EUR/GHS 6.2114 6.3528 6.3723 -0.31 -2.53
CAD/GHS 4.2681 4.1335 4.1748 -0.99 2.23
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢534.16 million in the week under review across the 91-Day and 182-Day Treasury Bills. This compared with GH¢2,491.11 million raised in the previous week.
The 91–Day and 182-Day Bills added 2bps and 8bps to settle at 13.97% and 14.09% respectively.
Please see below for more details.

Security Year Open Previous Yield % Current Yield % Chg % YTD %
01/01/20 26/06/20 03/07/20
91 Day TB 14.70 13.95 13.97 0.14 -4.92
182 Day TB 15.15 14.01 14.09 0.52 -7.00
364 Day TB 17.90 16.89 16.89 0.00 -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 19.25 19.25 0.00 -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 on the back of increasing global CoVid-19 infections. Gold futures settled at US$1,787.60 per ounce on Friday, reflecting w/w and YTD gains of 0.41% and 17.53% respectively.
Oil prices inched up for the week supported by a positive U.S. jobs data for June. Brent futures traded at US$42.77 a barrel on Friday, reflecting w/w gain and YTD loss of 4.27% and 35.20% respectively.
Prices of Cocoa closed lower for the week. Cocoa futures settled at US$2,214.00 per tonne, reflecting w/w and YTD losses of 5.87% and 12.83% respectively.

International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01/01/20 29/06/20 03/07/20
Brent crude oil (USD/bbl)
66.00 41.02 42.77
4.27
-35.20
Gold (USD/t oz.)
1,520.95 1,780.30 1,787.60
0.41
17.53
Cocoa (USD/MT)
2,540.00 2,352.00 2,214.00
-5.87
-12.83
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Market Value: 1. The highest estimated price that a buyer would pay and a seller would accept for an item in an open and competitive market.
2. Accounting: The replacement cost of an item arrived at by deducting estimated carrying, delivery, and selling costs from its estimated selling price.
Source: www.businessdictionary.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.