MACROECONOMIC INDICATORS
Q2, 2020 GDP -3.2%
Average GDP for 2020 0.9%
2020 Projected GDP 0.9%
BoG Policy Rate – Sep, 2020 14.50%
Weekly Interbank Interest Rate 13.55%
Inflation for Aug, 2020 10.5%
End Period Inflation Target - 2020 11.1%
Budget Deficit (% GDP) – Jul, 2020 7.4%
2020 Budget Deficit Target (%GDP) 11.4%
Public Debt (billion GH¢) – Jul, 2020 263.1
Debt to GDP Ratio – Jul, 2020 68.3%

STOCK MARKET REVIEW
The GSE Composite Index (GSE CI) moderated for the week, weighed by a decline in the price of Ecobank Transnational Incorporated (ETI). The index declined by 6.90 points (-0.37%) to close at 1,834.47 points, increasing its year-to-date (YTD) loss to 18.73%. The GSE Financial Stocks Index (GSE FI) also weakened by 12.58 points (-0.75%) to close at at 1,656.71 points, reflecting YTD loss of 17.97%.

Market capitalization moderated by 0.45% for the week from GH¢53,165.81 million at the close of the previous week to GH¢52,927.83 million, representing YTD decline of 6.80%.
Trading activity strengthened for the week with 6,513,383 shares, valued at GH¢3,971,020.76 changing hands, compared with 1,703,402 shares, valued at GH¢2,967,637.04 in the preceding week.

Scancom Plc (MTNGH) dominated both volume and value of trades for the week, accounting for 81.63% and 80.34% of total volume and value of shares traded respectively.
The market closed on Friday with a lone advancer and laggard respectively. Standard Chartered Bank, posted a price gain of 0.15% to close the week at GH¢13.55 per share from GH¢13.53 at week open. ETI also posted a loss of 14.29% to close the week at GH¢0.06 per share.
Thirty-seven (37) counters remained flat at the closing bell on Friday.
The graphs and table below highlight activity on the market.

Best 5 &Worst 5 Performing Stocks
Best Performing Stocks: YTD Return
Cocoa Processing Company 50.00%
SIC Insurance Company Ltd. 25.00%
Camelot Ghana Ltd. 22.22%
Aluworks Limited 10.00%
Dannex Ayrton Starwin Plc. 2.56%

Worst Performing Stocks:
Fan Milk Ltd. -74.76%
Guinness Ghana Breweries Ltd. -40.83%
Unilever Ghana -37.74%
Republic Bank (Ghana) Ltd. -28.57%
GCB Bank Plc -27.45%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.7020/$ on Friday, compared with GH¢5.7001/$ at week open, reflecting w/w and YTD depreciations of 0.03% and 2.95% respectively against the USD. This compares with YTD depreciation of 9.33% a year ago.
The Cedi conversely strengthened against the GBP on the week. It traded at GH¢7.2413/£, compared with GH¢7.3847/£ at week open, reflecting w/w and YTD appreciations of 1.98% and 1.04% respectively against the GBP. This compares with YTD depreciation of 5.71% a year ago.
The Cedi also strengthened against the Euro on the week. It traded at GH¢6.6252/€, compared with GH¢6.7588/€ at week open, reflecting w/w appreciation and YTD depreciation of 2.02% and 6.25% respectively against the Euro. This compares with YTD depreciation of 5.27% a year ago.
The Cedi likewise strengthened against the CAD on the week. It opened trading at GH¢4.3255/C$ but closed at GH¢4.2529/C$, reflecting w/w and YTD appreciations of 1.71% and 0.36% 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 22-09-20 25-09-20
USD/GHS 5.5337 5.7001 5.7020 -0.03 -2.95
GBP/GHS 7.3164 7.3847 7.2413 1.98 1.04
EUR/GHS 6.2114 6.7588 6.6252 2.02 -6.25
CAD/GHS 4.2681 4.3255 4.2529 1.71 0.36
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢826.02 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,797.45 million raised in the previous week.
The 91–Day and 182-Day Bills added 3bps each to settle at 14.04% p.a. and 14.15% p.a. respectively.
Please see below for more details.

Security Year Open Previous Yield % Current Yield % Chg % YTD %
01-01-20 18-09-20 25-09-20
91 Day TB 14.70 14.01 14.04 0.21 -4.50
182 Day TB 15.15 14.12 14.15 0.18 -6.60
364 Day TB 17.90 16.99 16.99 0.00 -5.10
2-Yr FXR TN 20.95 18.25 18.25 0.00 -12.89
3-Yr Bond 19.70 19.00 19.00 0.00 -3.55
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 20.00 20.00 0.00 23.08
10-Yr Bond 19.80 19.80 19.80 0.00 0.00
15-Yr Bond 19.75 19.75 19.75 0.00 0.00
20-Yr Bond 20.20 20.20 20.20 0.00 0.00
Source: Bank of Ghana

COMMODITY MARKET
Gold prices traded losses for the week on the strength of the USD. Gold futures for December delivery settled at US$1,866.30 per ounce on Friday, reflecting w/w loss and YTD gain of 4.88% and 22.71% respectively.
Oil prices also closed lower for the week on expectations of weaker demand on the back of rising COVID-19 cases. Brent futures traded at US$41.92 a barrel on Friday, reflecting w/w and YTD losses of 2.85% and 36.48% respectively.
Prices of Cocoa were also down for the week. Cocoa futures settled at US$2,568.00 per tonne, reflecting w/w loss and YTD gain of 2.76% and 1.10% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg% YTD
%
01-01-20 21-09-20 25-09-20
Brent crude oil (USD/bbl)
66.00 43.15 41.92
-2.85
-36.48
Gold (USD/t oz.)
1,520.95 1,962.10 1,866.30
-4.88
22.71
Cocoa (USD/MT)
2,540.00 2,641.00 2,568.00
-2.76
1.10
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Vertical Market: A market which meets the needs of a particular industry: for example, a piece of equipment used only by semiconductor manufacturers. opposite of horizontal market.
Source: www.investorwords.com

ABOUT CIDAN

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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.