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 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 supported by gains in 2 counters. The GSE Composite Index (GSE CI) gained 14.19 points (0.73%) to close at 1,955.78 points reflecting a year-to-date (YTD) gain to 0.73%. The GSE Financial Stocks Index (GSE FI) also gained 4.44 points (0.25%) to close at 1,787.20 points, reflecting YTD gain of 0.25%.

Market capitalization for the week was GH¢54,549.91, representing 0.32% gain from GH¢54,374.88 million at the close of the previous week. This reflects YTD gain of 0.32%.
A total of 70,205,313 shares, valued at GH¢46,030,381.89 changed hands for the week, compared with 30,218,537 shares, valued at GH¢13,598,640.35 in the preceding week.
MTN Ghana Limited dominated both volume and value of trades for the week, accounting for 99.09% and 97.92% of total volume and value of shares traded respectively.
The market closed the week with two (2) price gainers and no decliner.

Price Movers for the Week
EQUITY Opening Price (GH¢) Closing Price (GH¢) Percentage Change
MTNGH 0.64 0.65 +1.56
SCB 16.31 16.50 +1.16

Best & Worst Performing Stocks
Best Performing Stocks: YTD Return
MTN Ghana Ltd. 1.56%
Standard Chartered Bank Gh. Ltd. 1.16%

Worst Performing Stocks:

CURRENCY MARKET
The Cedi was fairly stable against the USD for the week. It traded at GH¢5.7605/$ on Friday, against GH¢5.7602/$ at week open, reflecting w/w and YTD depreciations of 0.01% each against the USD. This compares with YTD depreciation of 0.01% a year ago.
The Cedi on the contrary strengthened against the GBP on the week. It traded at GH¢7.8150/£, compared with GH¢7.8742/£ at week open, reflecting w/w and YTD appreciations of 0.76% each against the GBP. This compares with YTD appreciation of 1.14% a year ago.
The Cedi also strengthened against the Euro at end of week. It traded at GH¢7.0485/€, compared with GH¢7.0643/€ at week open, reflecting w/w and YTD appreciations of 0.22% each against the Euro. This compares with YTD appreciation of 0.65% a year ago.
The Cedi meanwhile weakened against the CAD on the week. It opened trading at GH¢4.5292/C$ but closed at GH¢4.5344/C$, reflecting w/w and YTD depreciations of 0.11% each against the CAD. This compares with YTD appreciation of 0.13% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close W/W Chg% YTD Chg%
01-01-21 04-01-21 08-01-21
USD/GHS 5.7602 5.7602 5.7605 -0.01 -0.01
GBP/GHS 7.8742 7.8742 7.8150 0.76 0.76
EUR/GHS 7.0643 7.0643 7.0485 0.22 0.22
CAD/GHS 4.5292 4.5292 4.5344 -0.11 -0.11
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,073.47 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,769.04 million raised in the previous week.
The 91-Day and 182-Day Treasury Bills shed 1bp each to settle at 14.09% p.a. and 14.14% p.a. respectively.

Security
Year Open Previous Yield % Current Yield % WoW Chg ( %) YTD Chg (%)
01-01-21 31-12-20 08-01-21
91 Day TB 14.10 14.10 14.09 -0.02 -0.02
182 Day TB 14.15 14.15 14.14 -0.04 -0.04
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 19.50 0.00 -7.14
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 higher for the week, supported by Saudi Arabia’s decision to cut its oil production further in February and March. Brent futures traded at US$55.99 a barrel on Friday, reflecting w/w and YTD gains of 8.09% each.
Gold prices ended the week lower following a spike in U.S. Treasury yields. Gold futures for February delivery settled at US$1,835.40 per ounce on Friday, reflecting w/w and YTD losses of 3.15% each.
Prices of Cocoa likewise closed weaker for the week. Cocoa futures settled at US$2,516.00 per tonne, reflecting w/w and YTD losses of 3.34% each.
International Commodity Prices

Commodities Year Open Week Open Week Close W/W Chg% YTD Chg%
01-01-21 04-01-21 08-01-21
Brent crude oil (USD/bbl)
51.80
51.80
55.99
8.09
8.09
Gold (USD/t oz.)
1,895.10
1,895.10
1,835.40
-3.15
-3.15
Cocoa (USD/MT)
2,603.00
2,603.00
2,516.00
-3.34
-3.34
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Junk Bond: Junk bonds are bonds that carry a higher risk of default than most bonds issued by corporations and governments. A bond is a debt or promises to pay investors interest payments and the return of invested principal in exchange for buying the bond. Junk bonds represent bonds issued by companies that are struggling financially and have a high risk of defaulting or not paying their interest payments or repaying the principal to investors.
Junk bonds are also called high-yield bonds since the higher yield is needed to help offset any risk of default.
Source: https://www.investopedia.com/terms/j/junkbond.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.