MACROECONOMIC INDICATORS
Q3, 2020 GDP Growth -1.1%
Average GDP Growth for 2020 0.2%
2020 Projected GDP Growth 0.9%
BoG Policy Rate 14.50%
Weekly Interbank Interest Rate 13.56%
Inflation for Dec, 2020 10.4%
End Period Inflation Target - 2020 11.1%
Budget Deficit (% GDP) – Sep, 2020 9.0%
2020 Budget Deficit Target (%GDP) 11.4%
Public Debt (billion GH¢) – Sep, 2020 273.8
Debt to GDP Ratio – Sep, 2020 71.0%

STOCK MARKET REVIEW
The Ghana Stock Exchange closed stronger for the week, supported by gains in 4 counters. The GSE Composite Index (GSE CI) gained 33.27 points (1.69%) to close at 2,002.29 points reflecting a year-to-date (YTD) gain of 3.13%. The GSE Financial Stocks Index (GSE FI) also gained 26.68 points (1.49%) to close at 1,816.34 points, reflecting YTD gain of 1.88%.

Market capitalization for the week was GH¢55,073.04, representing 0.70% gain from GH¢54,688.55 million at the close of the previous week. This reflects YTD gain of 1.28%.
A total of 6,392,186 shares, valued at GH¢9,050,158.82 changed hands for the week, compared with 20,387,216 shares, valued at GH¢13,430,254.44 in the preceding week.
MTN Ghana Limited dominated trades by volume for the week, accounting for 78.17% of total trade volumes, whilst GCB Bank dominated trades by value, accounting for 60.71% of total value of shares traded.
The market closed the week with 4 price advancers and 2 decliners.
Price Movers for the Week
Equity Opening Price (GH¢) Closing Price (GH¢) Gain/
Loss
Republic Bank (Ghana) PLC 0.41 0.45 9.76%
Societe Generale Ghana PLC 0.66 0.72 9.09%
GCB Bank Limited 4.05 4.4 8.64%
Scancom PLC 0.66 0.68 3.03%
Access Bank Ghana PLC 4.39 4.30 -2.05%
Unilever Ghana PLC 8.29 7.47 -9.89%

Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
Societe Generale Ghana PLC 12.50%
Republic Bank (Ghana) PLC 9.76%
GCB Bank Limited 8.64%
Scancom PLC 6.25%
Standard Chartered Bank Gh. PLC 1.16%

Worst 3 Performing Stocks:
Access Bank Ghana PLC -2.05
Aluworks Limited -9.09%
Unilever Ghana PLC -9.89%

CURRENCY MARKET
The Cedi closed weaker against the USD on the week. It traded at GH¢5.7618/$ on Friday, against GH¢5.7605/$ at week open, reflecting w/w and YTD depreciations of 0.02% and 0.03% respectively against the USD. This compares with YTD depreciation of 0.01% a year ago.
The Cedi also weakened against the GBP for the week. It traded at GH¢7.8735/£, compared with GH¢7.8323/£ at week open, reflecting w/w depreciation and YTD appreciation of 0.52% and 0.01% respectively against the GBP. This compares with YTD appreciation of 1.50% a year ago.
The Cedi further weakened against the Euro on the week. It traded at GH¢7.0134/€, compared with GH¢6.9645/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.70% and 0.73% respectively against the Euro. This compares with YTD appreciation of 1.16 % a year ago.
The Cedi likewise weakened against the CAD on the week. It opened trading at GH¢4.5185/C$ but closed at GH¢4.5399/C$, reflecting w/w and YTD depreciations of 0.47% and 0.24% respectively against the CAD. This compares with YTD appreciation of 0.76% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 18-01-21 22-01-21
USD/GHS 5.7602 5.7605 5.7618 -0.02 -0.03
GBP/GHS 7.8742 7.8323 7.8735 -0.52 0.01
EUR/GHS 7.0643 6.9645 7.0134 -0.70 0.73
CAD/GHS 4.5292 4.5185 4.5399 -0.47 -0.24
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢4,134.93 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢988.88 million raised in the previous week.
The 91-Day and 182-Day Bills trimmed 1bp each to settle at 14.08% p.a and 14.13% p.a respectively. The 6-Year Bond also trimmed 25bps to settle at 19.25% p.a. The 364-Day Bill however remained flat at 16.96% p.a.

Security Year Open Previous Yield % Current Yield % WoW Chg ( %) YTD Chg (%)
01-01-21 15-01-21 22-01-21
91 Day TB 14.10 14.09 14.08 -0.04 -0.09
182 Day TB 14.15 14.14 14.13 -0.07 -0.12
364 Day TB 16.96 16.96 16.96 0.00 0.00
2-Yr FXR TN 18.50 18.50 18.50 0.00 0.00
3-Yr Bond 19.25 19.25 19.25 0.00 0.00
5-Yr Bond 19.85 19.85 19.85 0.00 0.00
6-Yr Bond 19.50 19.50 19.25 -1.28 -8.33
7-Yr Bond 20.50 20.50 20.50 0.00 0.00
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
Oil prices closed lower for the week following an increase in U.S. stockpiles. Brent however closed higher on the week. Brent futures traded at US$55.41 a barrel on Friday, reflecting w/w and YTD gains of 0.56% and 6.97% respectively.
Gold prices edged higher for the week supported by declines in bond yields. Gold futures for February delivery settled at US$1,8560.20 per ounce on Friday, reflecting w/w gain and YTD loss of 1.44% and 2.05% respectively.
Prices of Cocoa also edged higher for the week. Cocoa futures settled at US$2,529.00 per tonne, reflecting w/w gain and YTD loss of 0.08% and 2.84% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-21 18-01-21 22-01-21
Brent crude oil (USD/bbl)
51.80
55.1 55.41
0.56
6.97
Gold (USD/t oz.)
1,895.10 1,829.90 1,856.20
1.44
-2.05
Cocoa (USD/MT)
2,603.00 2,527.00 2,529.00
0.08
-2.84
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Debasement: Debasement refers to lowering the value of a currency. It is primarily associated with coins made from precious metals, such as gold and silver. A currency is debased when the coins are made with a mix of precious metals and base metals as opposed to purely precious metals. The more base metals are added to a coin compared to precious metals, the further a currency is debased.
Source: https://www.investopedia.com/terms/d/debasement.asp

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.