MACROECONOMIC INDICATORS
Q1, 2021 GDP Growth 3.1%
Average GDP Growth for 2021 3.1%
2021 Projected GDP Growth 5.0%
BoG Policy Rate 13.50%
Weekly Interbank Interest Rate 12.73%
Inflation for May, 2021 7.5%
End Period Inflation Target - 2021 8.0%
Budget Deficit (% GDP) – Mar, 2021 2.6%
2021 Budget Deficit Target (%GDP) 9.5%
Public Debt (billion GH¢) – Mar, 2021 304.6
Debt to GDP Ratio – Mar, 2021 70.2%

STOCK MARKET REVIEW
The Ghana Stock Exchange moderated for the week pressured by dips in the prices of 2 counters. The GSE Composite Index (GSE CI) lost 2.28 points (-0.09%) to close at 2,643.60 points, reducing its year-to-date (YTD) gain to 36.16%. The GSE Financial Stocks Index (GSE FI) also declined by 11.42 points (-0.61%) to close at 1,871.41 points, reflecting YTD gain of 4.97%.

Market capitalization at the end of the week was GH¢61,330.73, representing a 0.33% decline from GH¢61,520.05 million at the close of the previous week. This reflects YTD increase of 12.79%.
Trading activity weakened for the week relative to the prior week. A total of 3,960,937 shares valued at GH¢5,184,534.92 changed hands compared with 7,730,843 shares, valued at GH¢9,265,082.50 in the preceding week.
CAL Bank PLC dominated trades by volume for the week, accounting for 41.75% of total trade volumes. GCB Bank PLC on the other hand dominated trades by value, accounting for 28.45% of total value of shares traded.
The market closed the week with 4 price advancers and 2 laggards as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/ Loss
Unilever Ghana PLC 3.07 3.33 8.47%
Total Petroleum Ghana Ltd. 3.42 3.65 6.73%
Enterprise Group Ltd. 1.75 1.80 2.86%
Societe Generale Ghana PLC 0.89 0.90 1.12%
Cal Bank PLC 0.71 0.70 -1.41%
Ecobank Transnational Inc. 0.06 0.05 -16.67%

5 Best & Worst Performing Stocks
Best 5 Performing Stocks:  YTD Return
MTN Ghana Ltd. 87.50%
Guinness Ghana Breweries Ltd. 43.33%
Societe Generale Ghana PLC 40.63%
GCB Bank PLC 33.33%
Total Petroleum Ghana PLC. 28.98%
   
Worst 5 Performing Stocks:  
Aluworks Limited -9.09%
SIC Insurance Company Ltd. -12.50%
Access Bank PLC -20.50%
Ecobank Transnational Inc. -37.50%
Unilever Ghana PLC -59.83%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.7542/$ on Friday, against GH¢5.7512/$ at week open, reflecting w/w depreciation and YTD appreciation of 0.05% and 0.10% respectively against the USD. This compares with YTD depreciation of 2.37% a year ago.
The Cedi also weakened against the GBP on the week. It traded at GH¢8.0038/£, compared with GH¢7.9450/£ at week open, reflecting w/w and YTD depreciations of 0.73% and 1.62% respectively against the GBP. This compares with YTD appreciation of 4.71% a year ago.
The Cedi further weakened against the Euro for the week. It traded at GH¢6.8735/€, compared with GH¢6.8242/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.72% and 2.78% respectively against the Euro. This compares with YTD depreciation of 2.23% a year ago.
The Cedi likewise weakened against the CAD on the week. It opened at GH¢4.6208/C$ but closed at GH¢4.6813/C$, reflecting w/w and YTD depreciations of 1.29% and 3.25% respectively against the CAD. This compares with YTD appreciation of 3.26% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD %
  01-01-21 21-06-21 25-06-21    
USD/GHS 5.7602 5.7512 5.7542 -0.05 0.10
GBP/GHS 7.8742 7.9450 8.0038 -0.73 -1.62
EUR/GHS 7.0643 6.8242 6.8735 -0.72 2.78
CAD/GHS 4.5292 4.6208 4.6813 -1.29 -3.25
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,296.93 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢3,084.11 million raised in the previous week.
The 91-Day and 182-Day Bills lost 1bp each to settle at 12.62% p.a. and 13.38% p.a respectively. The 364-Day Bill also lost 1bp to close at 16.33% p.a.
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 18-06-21 25-06-21    
91 Day TB 14.10 12.63 12.62 -0.02 -10.44
182 Day TB 14.15 13.39 13.38 -0.07 -5.44
364 Day TB 16.96 16.34 16.33 -0.03 -3.72
2-Yr FXR TN 18.50 17.60 17.60 0.00 -4.86
3-Yr Bond 19.25 17.70 17.70 0.00 -8.05
5-Yr Bond 19.85 18.80 18.80 0.00 -5.29
6-Yr Bond 19.50 19.25 19.25 0.00 -8.33
7-Yr Bond 20.50 18.10 18.10 0.00 -11.71
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 surged for the week on the back of rising demand for fuels following the relaxation social distancing protocols in some countries. Brent futures traded at US$76.18 a barrel on Friday, reflecting w/w and YTD gains of 3.63% and 47.07% respectively.
Gold prices strengthened for the week as data released on Friday by the U.S. showed that personal incomes and consumer sentiments fell in May. Gold futures settled at US$1,777.80 per ounce on Friday, reflecting w/w gain and YTD loss of 0.50% and 6.19% respectively.
Prices of Cocoa also strengthened for the week. Cocoa futures settled at US$2,351.00 per tonne on Friday, reflecting w/w gain and YTD loss of 2.13% and 9.68% respectively.

International Commodity Prices
Commodities Year Open Week Open Week Close Chg % YTD %
  01-01-21 21-06-21 25-06-21    
Brent crude oil (USD/bbl) 51.80 73.51 76.18 3.63 47.07
Gold (USD/t oz.) 1,895.10 1,769.00 1,777.80 0.50 -6.19
Cocoa (USD/MT) 2,603.00 2,302.00 2,351.00 2.13 -9.68
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Real Estate Investment Trust (REIT): A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.
Source: https://www.investopedia.com/terms/r/reit.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.