MACROECONOMIC INDICATORS
Q1’ 2020 GDP 4.9%
2020 Projected GDP 0.9%
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.69%
Inflation for June, 2020 11.2%
End Period Inflation Target - 2020 8.0%
Budget Deficit (% GDP) – Jun, 2020 6.3%
2020 Budget Deficit Target (%GDP) 11.4%
Public Debt (billion GH¢) – Jun, 2020 258.4
Debt to GDP Ratio – Jun, 2020 67.0%

STOCK MARKET REVIEW
The stock market closed stronger in the review week on the back of a lone gainer. The GSE Composite Index (GSE CI) added 1.53 points (0.08%) to close at 1,862.77 points, compared to 1,861.24 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 17.47%. The GSE Financial Stocks Index also added 2.83 points to close the week at 1,725.21 points, translating into YTD loss of 14.58%.

Market capitalization increased by 0.03% for the week from GH¢52,551.92 million at the close of the previous week to GH52,567.82 million at the close of the week. This represents YTD decline of 7.44%.
There was increased activity on the market compared with that of the preceding week. A total of 32,772,544 shares, valued at GH¢19,513,304.30 changed hands for the week, compared with 30,693,707 shares valued at GH¢17,523,060.96 recorded in the preceding week. MTNGH dominated both volume and value of shares traded for the week. MTNGH accounted for 98.14% (32,162,365) of total volume of shares traded and 92.30% (GH¢18,011,602.16) of total value of shares traded for the week.
The market closed on Friday with a lone gainer. GCB Bank was the lone gainer for the week closing trading at GH¢3.80 from GH¢3.74 (+1.60%) at week open.
Thirty-nine (39) 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%
Aluworks Limited 10.00%
Dannex Ayrton Starwin Plc. 2.56%
SCB Preference Share 1.16%

Worst Performing Stocks:
Fan Milk Ltd. -59.95%
Guinness Ghana Breweries Ltd. -28.99%
Republic Bank (Ghana) Ltd. -28.57%
Cal Bank Ltd -26.97%
GCB -26.49%

CURRENCY MARKET
The Cedi weakened against the USD in the week under review. It traded at GH¢5.6779/$ on Friday, compared with GH¢5.6709/$ at week open, reflecting w/w and YTD depreciations of 0.12% and 2.54% respectively against the USD. This compares with YTD depreciation of 8.27% a year ago.
The Cedi also weakened against the GBP on the week. It traded at GH¢7.2592/£, compared with GH¢7.1102/£ at week open, reflecting w/w depreciation and YTD appreciation of 2.05% and 0.79% respectively against the GBP. This compares with YTD depreciation of 5.21% a year ago.
The Cedi again weakened against the Euro for the week. It traded at GH¢6.6062/€, compared with GH¢6.4791/€ at week open, reflecting w/w and YTD depreciations of 1.92% and 5.98% respectively against the Euro. This compares with YTD depreciation of 5.69% a year ago.
The Cedi further weakened against the CAD on the week. It opened trading at GH¢4.1767/C$ but closed at GH¢4.2318/C$, reflecting w/w depreciation and YTD appreciation of 1.30% and 0.86% respectively against the CAD. This compares with YTD depreciation of 11.29% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01/01/20 20/07/20 24/07/20
USD/GHS 5.5337 5.6709 5.6779 -0.12 -2.54
GBP/GHS 7.3164 7.1102 7.2592 -2.05 0.79
EUR/GHS 6.2114 6.4791 6.6062 -1.92 -5.98
CAD/GHS 4.2681 4.1767 4.2318 -1.30 0.86
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢1,063.42 million in the week under review across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,090.23 million raised in the previous week.
The 91–Day Treasury Bill added 10bps to settle at 13.97% whilst the 182-Day and 364-Day Treasury Bills trimmed 1bp and 10bps to settle at 14.05% and 16.82% respectively.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD %
01/01/20 17/07/20 24/07/20
91 Day TB 14.70 13.87 13.97 0.71 -4.95
182 Day TB 15.15 14.06 14.05 -0.04 -7.23
364 Day TB 17.90 16.92 16.82 -0.57 -6.04
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 19.50 19.50 0.00 -7.14
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 continued their upward trajectory in the review week on the back of lower interest rates and a weakened USD. Gold futures for August settled at US$1,897.50 per ounce on Friday, reflecting w/w and YTD gains of 4.68% and 24.76% respectively.
Oil prices closed marginally higher for the week on expectations of a demand recovery. Brent futures traded at US$43.34 a barrel on Friday, reflecting w/w gain and YTD loss of 0.46% and 34.33% respectively.
Prices of Cocoa traded higher for the week. Cocoa futures settled at US$2,224.00 per tonne, reflecting w/w gain and YTD loss of 2.68% and 12.44% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01/01/20 20/07/20 24/07/20
Brent crude oil (USD/bbl)
66.00 43.14 43.34
0.46
-34.33
Gold (USD/t oz.)
1,520.95 1,812.65 1,897.50
4.68
24.76
Cocoa (USD/MT)
2,540.00 2,166.00 2,224.00
2.68
-12.44
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Capital ease: A lease that meets one or more of the following criteria, meaning it is classified as a purchase by the lessee: the lease term is greater than 75% of the property's estimated economic life; the lease contains an option to purchase the property for less than fair market value; ownership of the property is transferred to the lessee at the end of the lease term; or the present value of the lease payments exceeds 90% of the fair market value of the property.
Source: www.investorwords.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.