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 12.60%
Inflation for July, 2021 9.0%
End Period Inflation Target - 2021 8.0%
Budget Deficit (% GDP) – June, 2021 5.1%
2021 Budget Deficit Target (%GDP) 9.5%
Public Debt (billion GH¢) – June, 2021 334.56
Debt to GDP Ratio – June, 2021 77.1%

STOCK MARKET REVIEW
The Ghana Stock Exchange closed stronger for the week, supported by gains in 6 counters. The GSE Composite Index (GSE CI) gained 13.71 points (+0.50%) to close at 2,753.55 points, reflecting year-to-date (YTD) gain of 41.82%. The GSE Financial Stocks Index (GSE FI) also gained 15.68 points (+0.82%) to close at 1,929.78 points, reflecting YTD gain of 8.25%.

Market capitalization at the end of the week was GH¢62,940.06 million, representing 0.50% increase from GH¢62,629.27 million at the close of the previous week. This reflects YTD increase of 15.75%.
A total of 3,428,614 shares valued at GH¢3,393,946.96 changed hands for the week compared with 3,351,046 shares, valued at GH¢5,048,548.19 in the preceding week.
CAL Bank PLC dominated both volume and value of trades for the week, accounting for 58.08% and 42.25% of total volume and value of shares traded respectively.
The market closed the week with 6 price advancers and no decliner as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/Loss (%)
Fan Milk Ltd. 1.40 1.65 17.86
Ecobank Transnational Inc. 0.06 0.07 16.67
Unilever Ghana Ltd. 5.64 5.90 4.61
Enterprise Group Ltd. 1.99 2.06 3.52
Ghana Oil Company Limited 1.55 1.57 1.29
Ecobank Ghana Ltd. 7.33 7.34 0.14

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
MTN Ghana Ltd. 93.75%
Guinness Ghana Breweries Ltd. 66.67%
Fan Milk Ltd. 52.78%
Societe Generale Ghana PLC 48.44%
Total Petroleum Ghana Ltd. 48.41%

Worst 5 Performing Stocks:
SIC Insurance Company Ltd. -12.50%
Ecobank Transnational Inc. -12.50%
Access Bank Ghana PLC -20.50%
Unilever Ghana PLC -28.83%
Cocoa Processing Co. Ltd. -33.33%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.8564/$ on Friday, against GH¢5.8502/$ at week open, reflecting w/w and YTD depreciations of 0.11% and 1.64% respectively against the USD. This compares with YTD depreciation of 2.82% a year ago.
The Cedi also weakened against the GBP on the week. It traded at GH¢8.1214/£, compared with GH¢8.0449/£ at week open, reflecting w/w and YTD depreciations of 0.94% and 3.04% respectively against the GBP. This compares with YTD depreciation of 2.66% a year ago.
The Cedi again weakened against the Euro for the week. It traded at GH¢6.9607/€, compared with GH¢6.8984/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.89% and 1.49% respectively against the Euro. This compares with YTD depreciation of 7.47% a year ago.
The Cedi likewise weakened against the CAD on the week. It opened at GH¢4.6303/C$ but closed at GH¢4.6815/C$, reflecting w/w and YTD depreciations of 1.09% and 3.25% respectively against the CAD. This compares with YTD depreciation of 1.59% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 30-08-21 03-09-21
USD/GHS 5.7602 5.8502 5.8564 -0.11 -1.64
GBP/GHS 7.8742 8.0449 8.1214 -0.94 -3.04
EUR/GHS 7.0643 6.8984 6.9607 -0.89 1.49
CAD/GHS 4.5292 4.6303 4.6815 -1.09 -3.25
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,522.52 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,207.80 million raised in the previous week.
The 91-Day and 182-Day bills lost 1bp and 2bps each to close at 12.45% p.a. and 13.20% p.a. respectively. The 364-Day Bill also lost 1bp to settle at 16.10% 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 27-08-21 03-09-21
91 Day TB 14.10 12.46 12.45 -0.10 -11.68
182 Day TB 14.15 13.22 13.20 -0.22 -6.75
364 Day TB 16.96 16.11 16.10 -0.09 -5.10
2-Yr FXR TN 18.50 17.25 17.25 0.00 -6.76
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 19.75 19.75 0.00 -0.25
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 posted gains for the second straight week due to a weaker demand outlook. Brent futures traded at US$72.61 a barrel on Friday, reflecting w/w and YTD gains of 1.37% and 40.17% respectively.
Gold prices tallied gains for the fourth straight week following a less than impressive U.S. jobs data for August. Gold futures settled at US$1,833.70 per ounce on Friday, reflecting w/w gain and YTD loss of 0.74% and 3.24% respectively.
Prices of Cocoa recovered to post gains for the week. Cocoa futures settled at US$2,674.00 per tonne on Friday, reflecting w/w and YTD gains of 3.95% and 2.73% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD %

01-01-21
30-08-21
03-09-21
Brent crude oil (USD/bbl)
51.80 71.63 72.61
1.37
40.17

Gold (USD/t oz.)
1,895.10 1,820.25 1,833.70
0.74
-3.24

Cocoa (USD/MT)
2,603.00 2,572.50 2,674.00
3.95
2.73
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Dirty Price: Dirty price is when a bond price includes interest that has accrued since the latest coupon payment. It is seen as “dirty” because the accrued interest included in the bond price goes to the seller.
Source: https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/dirty-price/

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).

Email: info@cidaninvestmens.com
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.