MACROECONOMIC INDICATORS
Q2, 2020 GDP Growth -3.2%
Average GDP Growth for 2020 0.9%
2020 Projected GDP Growth 0.9%
BoG Policy Rate – Nov, 2020 14.50%
Weekly Interbank Interest Rate 13.56%
Inflation for Nov, 2020 9.8%
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 on the back of gains in 2 tickers. The GSE Composite Index (GSE CI) gained 34.09 points (1.87%) to close at 1,854.32 points, decreasing its year-to-date (YTD) loss to 17.85%. The GSE Financial Stocks Index (GSE FI) also gained 52.62 points (3.24%) to close at 1,678.22 points, reflecting YTD loss of 16.91%.

Market capitalization for the week was GH¢53,461.32 representing 0.68% gain from GH¢53,102.36 million at the close of the previous week. This reflects YTD decline of 5.86%.
A total of 25,508,621 shares, valued at GH¢60,495,926.34 changed hands for the week, compared with 37,587,374 shares, valued at GH¢23,213,077.84 in the preceding week.
MTN Ghana Limited dominated volume of trades for the week, accounting for 60.59% of total volume of shares. Unilever Ghana Limited on the other hand dominated value of trades for the week, accounting for 75.55% of total value of shares traded.
The market closed on Friday with 2 advancers and no decliner. Total Petroleum Ghana Limited (TOTAL) posted the higher price gain of 20.43% close at GH¢2.83 per share from GH¢2.35 per share.
Thirty-six (36) counters remained flat at the closing bell on Friday.
The graphs and table below highlight activity on the market.

Best 4 &Worst 5 Performing Stocks
Best Performing Stocks: YTD Return
Cocoa Processing Company 50.00%
Camelot Ghana Ltd. 22.22%
Aluworks Limited 10.00%
Dannex Ayrton Starwin Plc. 2.56%

Worst Performing Stocks:
Fan Milk Ltd. -73.79%
Unilever Ghana -43.84%
Guinness Ghana Breweries Ltd. -46.75%
Republi Bank (Ghana) Ltd. -26.79%
Benso Oil Palm Plantation -30.07%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.7145/$ on Friday, against GH¢5.7139/$ at week open, reflecting w/w and YTD depreciations of 0.01% and 3.16% respectively against the USD. This compares with YTD depreciation of 12.97% a year ago.
The Cedi however strengthened against the GBP on the week. It traded at GH¢7.5535/£, compared with GH¢7.7082/£ at week open, reflecting w/w appreciation and YTD depreciation of 2.05% and 3.14% respectively against the GBP. This compares with YTD depreciation of 16.36% a year ago.
The Cedi also strengthened against the Euro. It traded at GH¢6.9206/€, compared with GH¢6.9409/€ at week open, reflecting w/w appreciation and YTD depreciation of 0.29% and 10.25% respectively against the Euro. This compares with YTD depreciation of 10.62% a year ago.
The local currency weakened against the CAD on the week. It opened trading at GH¢4.4601/C$ but closed at GH¢4.4768/C$, reflecting w/w and YTD depreciations of 0.37% and 4.66% respectively against the CAD. This compares with YTD depreciation of 15.89% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-20 08-12-20 11-12-20
USD/GHS 5.5337 5.7139 5.7145 -0.01 -3.16
GBP/GHS 7.3164 7.7082 7.5535 2.05 -3.14
EUR/GHS 6.2114 6.9409 6.9206 0.29 -10.25
CAD/GHS 4.2681 4.4601 4.4768 -0.37 -4.66
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,066.54 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,551.12 million raised in the previous week.
The 91-Day Treasury Bill added 1bp to settle at 14.08% p.a. whilst the 182-Day and 364-Day Treasury Bill rates shed 2bps each to settle at 14.11% p.a. and 16.99% p.a. respectively.

Please see below for more details.
Security Year Open Previous Yield % Current Yield % WoW Chg ( %) YTD Chg (%)
01-01-20 03-12-20 11-12-20
91 Day TB 14.70 14.07 14.08 0.04 -4.21
182 Day TB 15.15 14.13 14.11 -0.10 -6.83
364 Day TB 17.90 16.97 16.99 0.13 -5.09
2-Yr FXR TN 20.95 18.50 18.50 0.00 -11.69
3-Yr Bond 19.70 19.25 19.25 0.00 -2.28
5-Yr Bond 19.50 19.85 19.85 0.00 1.79
6-Yr Bond 21.00 19.50 19.50 0.00 -7.14
7-Yr Bond 16.25 20.50 20.50 0.00 26.15
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 posted marginal gains for the week as the U.S. Congress fails to reach an agreement for a second COVID-19 stimulus package. Gold futures for February delivery settled at US$1,843.60 per ounce on Friday, reflecting w/w and YTD gains of 0.20% and 21.21% respectively.
Oil prices advanced for the sixth straight week on hopes of a global economic turnaround following a successful COVID-19 vaccine development. Brent futures traded at US$49.97 a barrel on Friday, reflecting w/w gain and YTD loss of 1.46% and 24.29% respectively.
Prices of Cocoa meanwhile eased for the second straight week. Cocoa futures settled at US$2,747.00 per tonne, reflecting w/w loss and YTD gains of 4.55% and 8.15% respectively.

International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-20 08-12-20 11-12-20
Brent crude oil (USD/bbl)
66.00 49.25 49.97
1.46 -24.29
Gold (USD/t oz.) 1,520.95 1,840.00 1,843.60
0.20
21.21
Cocoa (USD/MT)
2,540.00 2,878.00 2,747.00
-4.55
8.15
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Non-Performing Asset: A nonperforming asset (NPA) refers to a classification for loans or advances that are in default or in arrears. A loan is in arrears when principal or interest payments are late or missed. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his obligations..
Source: https://www.investopedia.com/terms/n/non-performing-assets.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).

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.