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 12.61%
Inflation for August, 2021 9.7%
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 9 counters. The GSE Composite Index (GSE CI) gained 46.81 points (+1.70%) to close at 2,800.36 points, reflecting year-to-date (YTD) gain of 44.23%. The GSE Financial Stocks Index (GSE FI) also gained 29.40 points (+1.52%) to close at 1,959.18 points, reflecting YTD gain of 9.90%.

Market capitalization at the end of the week was GH¢63,430.44 million, representing 0.78% increase from GH¢62,940.06 million at the close of the previous week. This reflects YTD increase of 16.65%.
Trading activity improved for the week relative to the prior week. A total of 4,431,278 shares valued at GH¢5,840,151.12 changed hands for the week compared with 3,428,614 shares, valued at GH¢3,393,946.96 in the preceding week.
MTN Ghana dominated both volume and value of trades for the week, accounting for 97.11% and 92.81% of total volume and value of shares traded respectively.
The market closed the week with 9 price advancers and no decliner as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/Loss (%)
Total Petroleum Ghana Ltd. 4.20 4.62 10.00
Fan Milk Ltd. 1.65 1.76 6.67
Ecobank Ghana Ltd. 7.34 7.80 6.27
Benso Oil Palm Plantation 2.51 2.6 3.59
Standard Chartered Bank 0.87 0.90 3.45
Societe Generale Ghana PLC 0.95 0.97 2.11
Enterprise Group Ltd. 2.06 2.1 1.94
Ghana Oil Company Limited 1.57 1.60 1.91
Scancom PLC (MTNGH) 1.24 1.26 1.61

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
MTN Ghana Ltd. 96.88%
Guinness Ghana Breweries Ltd. 66.67%
Total Petroleum Ghana Ltd. 63.25%
Fan Milk Ltd. 62.96%
Societe Generale Ghana PLC 51.56%

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 strengthened against the USD for the week. It traded at GH¢5.8561/$ on Friday, against GH¢5.8564/$ at week open, reflecting w/w appreciation and YTD depreciation of 0.01% and 1.64% respectively against the USD. This compares with YTD depreciation of 2.86% a year ago.
The Cedi also strengthened against the GBP on the week. It traded at GH¢8.1093/£, compared with GH¢8.1214/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.15% and 2.90% respectively against the GBP. This compares with YTD appreciation of 0.47% a year ago.
The Cedi again strengthened against the Euro for the week. It traded at GH¢6.9271/€, compared with GH¢6.9607/€ at week open, reflecting w/w and YTD appreciations of 0.48% and 1.98% respectively against the Euro. This compares with YTD depreciation of 7.89% a year ago.
The Cedi likewise strengthened against the CAD on the week. It opened at GH¢4.6815/C$ but closed at GH¢4.6340/C$, reflecting w/w appreciation and YTD depreciation of 1.03% and 2.26% respectively against the CAD. This compares with YTD depreciation of 1.21% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 06-09-21 10-09-21
USD/GHS 5.7602 5.8564 5.8561 0.01 -1.64
GBP/GHS 7.8742 8.1214 8.1093 0.15 -2.90
EUR/GHS 7.0643 6.9607 6.9271 0.48 1.98
CAD/GHS 4.5292 4.6815 4.6340 1.03 -2.26
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢2,497.69 million for the week across the 91-Day and 182-Day Treasury Bills and a 6-Year Bond. This compared with GH¢1,522.52 million raised in the previous week.
The 91-Day bill settled flat at 12.45% p.a. whilst the 182-Day bill added 1bp to close at 13.21% p.a. The 6-Year Bond meanwhile lost 45bps to settle at 18.80% 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 03-09-21 10-09-21
91 Day TB 14.10 12.45 12.45 0.01 -11.67
182 Day TB 14.15 13.20 13.21 0.13 -6.63
364 Day TB 16.96 16.10 16.10 0.00 -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 18.80 -2.34 -10.48
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 third straight week supported by a constrained U.S. output occasioned by hurricane Ida. Brent futures traded at US$72.92 a barrel on Friday, reflecting w/w and YTD gains of 0.43% and 40.77% respectively.
Gold prices recorded losses for the week pressured by a stronger U.S. dollar. Gold futures settled at US$1,792.10 per ounce on Friday, reflecting w/w and YTD losses of 2.27% and 5.44% respectively.
Prices of Cocoa also posted losses for the week. Cocoa futures settled at US$2,643.00 per tonne on Friday, reflecting w/w loss and YTD gain of 1.16% and 1.54% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-21 06-09-21 10-09-21
Brent crude oil (USD/bbl)
51.80 72.61 72.92
0.43
40.77

Gold (USD/t oz.)
1,895.10 1,833.70 1,792.10
-2.27
-5.44

Cocoa (USD/MT)
2,603.00 2,674.00 2,643.00
-1.16
1.54
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Overheated Economy: An overheated economy is one that has experienced a prolonged period of good economic growth and activity that has led to high levels of inflation, triggered by increased consumer wealth.
Source: https://www.investopedia.com/terms/o/overheated_economy.asp

ABOUT CIDAN
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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.