MACROECONOMIC INDICATORS
Q1, 2022 GDP Growth |
3.3% |
Average GDP Growth for 2022 |
3.3% |
2022 Projected GDP Growth |
3.7% |
BoG Policy Rate |
22.00% |
Weekly Interbank Interest Rate |
22.12% |
Inflation for Aug, 2022 |
33.9% |
End Period Inflation Target – 2022 |
28.5% |
Budget Deficit (% GDP) – May, 2022 |
5.0% |
2022 Budget Deficit Target (%GDP) |
6.6% |
Public Debt (billion GH¢) – Jun, 2022 |
393.4 |
Debt to GDP Ratio – Jun, 2022 |
78.3% |
STOCK MARKET REVIEW
The Ghana Stock Exchange closed lower for the fourth consecutive week on the back of price declines by 4 counters. The GSE Composite Index (GSE CI) lost 28.09 points (-1.13%) to close at 2,460.12 points, reflecting year-to-date (YTD) loss of 11.80%. The GSE Financial Stocks Index (GSE FI), on the other hand, gained 14.46 points (+0.70%) to close at 2,070.10 points, reflecting YTD loss of 3.80%.
Market capitalization declined by 0.46% to close the week at GH¢63,985.81 million, from GH¢64,279.00 million at the close of the previous week. This reflects a YTD decrease of 0.79%.
Trading activity recorded a total of 32,024,328 shares valued at GH¢30,794,565.98 changing hands, compared with 953,819 shares, valued at GH¢1,460,375.70 in the preceding week.
MTN dominated both volume and value of trades for the week, accounting for 95.63% and 87.53% of shares traded respectively.
The market ended the week with 4 decliners as indicated on the table below. `
Price Movers for the Week |
|||
Equity |
Opening Price |
Closing Price |
Gain/Loss (%) |
SCB |
20.24 |
20.16 |
?0.40% |
EGH |
6.67 |
6.64 |
?0.45% |
GOIL |
1.79 |
1.77 |
?1.12% |
MTNGH |
0.91 |
0.88 |
?3.30% |
CURRENCY MARKET
The Cedi depreciated against the USD for the week. It traded at GH¢9.6048/$, compared with GH¢9.5414/$ at week open, reflecting w/w and YTD depreciations of 0.66% and 37.47% respectively. This compares with YTD depreciation of 1.81% a year ago.
The Cedi also weakened against the GBP for the week. It traded at GH¢10.7017/£, compared with GH¢10.4150/£ at week open, reflecting w/w and YTD depreciations of 2.68% and 24.06% respectively. This compares with YTD depreciation of 0.91% a year ago.
The Cedi again weakened against the Euro for the week. It traded at GH¢9.4147/€, compared with GH¢9.2721/€ at week open, reflecting w/w and YTD depreciations of 1.51% and 27.47% respectively. This compares with YTD appreciation of 3.85% a year ago.
The Cedi meanwhile strengthened against the Canadian Dollar for the week. It opened at GH¢7.0265/C$ but closed at GH¢6.9969/C$, reflecting w/w gain and YTD depreciation of 0.42% and 32.23% respectively. This compares with YTD depreciation of 2.16% a year ago.
Weekly Interbank Foreign Exchange Rates |
|||||
Currency Pair |
Year Open |
Week Open |
Week Close |
Change % |
YTD % |
|
01-01-22 |
26-09-22 |
30-09-22 |
|
|
USD/GHS |
6.0061 |
9.5414 |
9.6048 |
?0.66 |
?37.47 |
GBP/GHS |
8.1272 |
10.4150 |
10.7017 |
?2.68 |
?24.06 |
EUR/GHS |
6.8281 |
9.2721 |
9.4147 |
?1.51 |
?27.47 |
CAD/GHS |
4.7416 |
7.0265 |
6.9969 |
?0.42 |
?32.23 |
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢999.86 million for the week across the 91-Day ,182-Day and 364-Day Treasury Bills. This compared with GH¢1,192.42 million raised in the previous week.
The 91-Day Bill settled at 30.45% p.a from 30.18% p.a. last week whilst the 182-Day Bill settled at 31.57% p.a from 31.34% p.a. last week. The 364-Day Bill settled at 31.55% p.a. from 30.47% previously. 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 (%) |
|
01-01-22 |
26-09-22 |
30-09-22 |
|
|
91 Day TB |
12.53 |
30.18 |
30.45 |
?0.90 |
?143.13 |
182 Day TB |
13.21 |
31.34 |
31.57 |
?0.72 |
?138.95 |
364 Day TB |
16.64 |
30.47 |
31.55 |
?3.53 |
?89.54 |
2-Yr FXR TN |
19.75 |
21.50 |
21.50 |
0.00 |
8.86 |
3-Yr Bond |
20.50 |
29.85 |
29.85 |
0.00 |
45.61 |
5-Yr Bond |
21.00 |
22.30 |
22.30 |
0.00 |
6.19 |
6-Yr Bond |
18.80 |
21.75 |
21.75 |
0.00 |
15.69 |
7-Yr Bond |
18.10 |
18.10 |
18.10 |
0.00 |
0.00 |
10-Yr Bond |
19.75 |
19.75 |
19.75 |
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 marginally higher for the week as OPEC+ considers reducing output by more than 1 million barrels per day (bpd). Brent futures traded at US$85.14 a barrel on Friday, compared to US$85.03 at week open. This reflects w/w and YTD appreciations of 0.13% and 9.46% respectively.
Gold prices strengthened for the week as growing risks of an economic recession spurred some safe haven demand for the yellow metal. Gold settled at US$1,684.90, from US$1,655.60 last week, reflecting w/w gain and YTD loss of 1.77% and 7.86% respectively.
Prices of Cocoa increased for the week. The commodity traded at US$2,354.00 per tonne on Friday, from US$2,247.00 last week, reflecting w/w gain and YTD loss of 4.76% and 6.59% respectively.
International Commodity Prices
Commodities |
Year Open |
Week Open |
Week Close |
Chg % |
YTD % |
|
01-01-22 |
26-09-22 |
30-09-22 |
|
|
Brent crude oil (USD/bbl) |
77.78 |
85.03 |
85.14 |
?0.13 |
?9.46 |
Gold (USD/t oz.) |
1,828.60 |
1,655.60 |
1,684.90 |
?1.77 |
?7.86 |
Cocoa (USD/MT) |
2,520.00 |
2,247.00 |
2,354.00 |
?4.76 |
?6.59 |
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Debt Reprofiling: It is a form of debt restructuring in which the time for repayment of the debt is extended while the interest rate and principal amount borrowed are not cut.
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).
RESEARCH TEAM
Name: Ernest Tannor
Email:etannor@cidaninvestments.com
Tel:+233 (0) 20 881 8957
Name: Moses Nana Osei-Yeboah
Email:moyeboah@cidaninvestments.com
Tel:+233 (0) 24 499 0069
CORPORATE INFORMATION
CIDAN Investments Limited
CIDAN House
Plot No. 169 Block 6
Haatso, North Legon – Accra
Tel: +233 (0) 26171 7001/ 26 300 3917
Fax: +233 (0)30 254 4351
Email: info@cidaninvestmens.com
Website: www.cidaninvestments.com
DisclaimerThe 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.