info@businessghana.com
MACROECONOMIC INDICATORS
|
Q2, 2021 GDP Growth |
3.9% |
|
Average GDP Growth for 2021 |
3.5% |
|
2021 Projected GDP Growth |
5.0% |
|
BoG Policy Rate |
14.50% |
|
Weekly Interbank Interest Rate |
12.63% |
|
Inflation for October, 2021 |
11.00% |
|
End Period Inflation Target – 2021 |
8.0% |
|
Budget Deficit (% GDP) – Sep, 2021 |
7.7% |
|
2021 Budget Deficit Target (%GDP) |
9.5% |
|
Public Debt (billion GH¢) – Sep, 2021 |
341.8 |
|
Debt to GDP Ratio – Sep, 2021 |
77.8% |
STOCK MARKET REVIEW
The Ghana Stock Exchange dropped for the week on the back of downward movements by 4 counters. The GSE Composite Index (GSE CI) lost 51.44 points (-1.73%) to close at 2,919.56 points, reflecting a year-to-date (YTD) gain of 50.37%. The GSE Financial Stocks Index (GSE FI) however gained 5.44 points (+0.26%) to close at 2,078.89 points, reflecting a year-to-date (YTD) gain of 16.61%.
Market capitalization at the end of the week was GH¢64,848.73 million, representing a 0.82% decrease from GH¢65,387.14 million at the close of the previous week. This reflects YTD increase of 19.26%.
Trading activity increased for the week relative to activity in the prior week. A total of 11,034,092 shares valued at GH¢15,071,064.39 changed hands for the week compared with 5,904,116 shares, valued at GH¢7,085,184.54 in the preceding week.
MTN dominated both volume and value of trades for the week, accounting for 88.45% and 82.3%respectively of total shares traded.
The market closed the week with 2 price advancers and 2 decliners as indicated on the table below.
|
Price Movers for the Week |
|||
|
Equity |
Opening Price |
Closing Price |
Gain/Loss (%) |
|
Ghana Oil Company Limited |
1.70 |
1.82 |
7.06% |
|
Cal Bank PLC |
0.82 |
0.87 |
6.10% |
|
Total Petroleum Ghana Ltd |
5.52 |
5.50 |
-0.36% |
|
Scancom PLC |
1.30 |
1.25 |
-3.85% |
|
5 Best & Worst Performing Stocks as at 19/12/21 |
|
|
Best 5 Performing Stocks: |
YTD Return |
|
Fan Milk Ltd. |
275.00% |
|
BOPP |
232.50% |
|
GGBL |
101.11% |
|
MTNGH |
95.31% |
|
TOTAL |
94.35% |
|
|
|
|
Worst 5 Performing Stocks: |
YTD Return |
|
MAC |
-9.87% |
|
SIC Insurance Company Ltd. |
-12.50% |
|
Access Bank Ghana PLC |
-28.25% |
|
Unilever Ghana PLC |
-28.95% |
|
Cocoa Processing Co. Ltd. |
-33.33% |
CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.9113/$ on Friday, compared to GH¢5.9031/$ at week open, reflecting w/w and YTD depreciations of 0.14% and 2.56% respectively against the USD. This compares with YTD depreciation of 3.14% a year ago.
The Cedi also lost against the GBP for the reporting week as it traded at GH¢7.9578/£, compared with GH¢7.9182/£ at week open, reflecting w/w and YTD depreciation of 0.50% and 1.05% respectively against the GBP. This compares with YTD depreciation of 3.61% a year ago.
The Cedi however strengthened against the Euro for the week. It traded at GH¢6.6892/€, compared with GH¢6.7599/€ at week open, reflecting w/w and YTD appreciations of 1.06% and 5.61% respectively against the Euro. This compares with YTD depreciation of 8.29% a year ago.
The Cedi likewise strengthened against the CAD on the week. It opened at GH¢4.7031/C$ but closed at GH¢4.6780/C$, reflecting w/w appreciation and YTD depreciation of 0.54% and 3.18% respectively against the CAD. This compares with YTD depreciation of 2.39% a year ago.
|
Weekly Interbank Foreign Exchange Rates |
|||||
|
Currency Pair |
Year Open |
Week Open |
Week Close |
Change % |
YTD % |
|
|
01/01/21 |
15/11/21 |
19/11/21 |
|
|
|
USD/GHS |
5.7602 |
5.9031 |
5.9113 |
-0.14 |
-2.56 |
|
GBP/GHS |
7.8742 |
7.9182 |
7.9578 |
-0.50 |
-1.05 |
|
EUR/GHS |
7.0643 |
6.7599 |
6.6892 |
1.06 |
5.61 |
|
CAD/GHS |
4.5292 |
4.7031 |
4.6780 |
0.54 |
-3.18 |
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢655.73 million for the week across the 91-Day and 182-Day Treasury Bills, compared to GH¢1,236.61 million raised in the previous week.
The 91-Day bill gained 2bps from the previous week’s rate to settle at 12.50% p.a. whilst the 182-Day bill lost 3bps to settle at 13.19% p.a. respectively.
The table and graph below highlight primary market yields at close of the week.
|
Security |
Year Open |
Previous Yield % |
Current Yield % |
WoW Chg (%) |
YTD Chg (%) |
|
|
01/01/21 |
12/11/21 |
19/11/21 |
|
|
|
91 Day TB |
14.10 |
12.48 |
12.50 |
0.10 |
-11.35 |
|
182 Day TB |
14.15 |
13.22 |
13.19 |
-0.22 |
-6.80 |
|
364 Day TB |
16.96 |
16.29 |
16.29 |
0.00 |
-3.99 |
|
2-Yr FXR TN |
18.50 |
20.00 |
20.00 |
0.00 |
8.11 |
|
3-Yr Bond |
19.25 |
19.00 |
19.00 |
0.00 |
-1.30 |
|
5-Yr Bond |
19.85 |
18.80 |
18.80 |
0.00 |
-5.29 |
|
6-Yr Bond |
19.50 |
18.80 |
18.80 |
0.00 |
-10.48 |
|
7-Yr Bond |
20.50 |
18.10 |
18.10 |
0.00 |
-11.71 |
|
10-Yr Bond |
19.80 |
19.75 |
19.75 |
0.00 |
-0.25 |
|
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 fell to a six-week low on Friday as new Covid lockdowns triggered demand concerns as surging COVID-19 cases in Europe threatened to slow the economic recovery. Investors also considered a potential release of crude reserves by major economies to tame prices.The Commodity settled lower for the third straight week as Brent futures traded at US$78.89 a barrel on Friday, reflecting w/w loss and YTD gain of 3.99% and 52.30% respectively.
Gold prices settled at US$1,851.60 per ounce on Friday, reflecting w/w and YTD loss of 0.90% and 2.30% respectively.
Prices of Cocoa appreciated for the week as the commodity traded at US$2,493.00 per tonne on Friday, reflecting w/w appreciation and YTD losses of 0.93% and 4.23% respectively.
International Commodity Prices
|
Commodities |
Year Open |
Week Open |
Week Close |
Chg % |
YTD % |
|
01/01/20 |
15/11/21 |
19/11/21 |
|||
|
Brent crude oil (USD/bbl) |
51.80 |
82.17 |
78.89 |
-3.99 |
52.30 |
|
Gold (USD/t oz.) |
1,895.10 |
1,868.50 |
1,851.60 |
-0.90 |
-2.30 |
|
Cocoa (USD/MT) |
2,603.00 |
2,470.00 |
2,493.00 |
0.93 |
-4.23 |
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Bid Price: The bid price of a security is the price that an investor is willing to pay for that security.
Source: https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/bid-and-ask/
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.
