MACROECONOMIC INDICATORS
Q2, 2021 GDP Growth 3.9%
Average GDP Growth for 2021 3.5%
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) – July, 2021 6.1%
2021 Budget Deficit Target (%GDP) 9.5%
Public Debt (billion GH¢) – July, 2021 335.9
Debt to GDP Ratio – July, 2021 76.4%

STOCK MARKET REVIEW
The Ghana Stock Exhange closed weaker for the week following declines in the stock prices of Republic Bank (Ghana) PLC and MTNGH. The GSE Composite Index (GSE CI) lost 118.04 points (-4.22%) to close at 2,677.88 points, reflecting year-to-date (YTD) loss of 37.92%. The GSE Financial Stocks Index (GSE FI) on the other hand gained 23.45 points (+1.18%) to close at 2,006.00 points, reflecting YTD gain of 12.52%.

Market capitalization at the end of the week was GH¢62,314.15 million, representing 1.94% decrease from GH¢63,549.56 million at the close of the previous week. This reflects YTD decline of 14.60%.
A total of 5,065,892 shares valued at GH¢7,666,730.42 changed hands for the week compared with 9,777,266 shares, valued at GH¢13,327,264.51 in the preceding week.
CAL Bank PLC dominated both volume and value of trades for the week, accounting for 58.38% and 28.55% of total volume and value of shares traded respectively.
The market closed the week with 4 price advancers and 2 decliners as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/Loss (%)
Fan Milk Ltd. 1.92 2.74 42.71
Societe Generale Ghana PLC 1.04 1.25 20.19
Benso Oil Palm Plantation 2.60 2.86 10.00
Ecobank Ghana Ltd. 7.8 7.81 0.13
Republic Bank (Ghana) PLC 0.45 0.43 -4.44
Scancom PLC (MTNGH) 1.24 1.12 -9.68

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
Fan Milk Ltd. 153.70%
Societe Generale Ghana PLC 95.31%
Guinness Ghana Breweries Ltd. 83.33%
MTN Ghana Ltd. 75.00%
Total Petroleum Ghana Ltd. 63.25%

Worst 5 Performing Stocks:
Aluworks Limited -9.09%
SIC Insurance Company Ltd. -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¢5.8643/$ on Friday, against GH¢5.8630/$ at week open, reflecting w/w and YTD depreciations of 0.02% and 1.78% respectively against the USD. This compares with YTD depreciation of 2.95% a year ago.
The Cedi meanwhile strengthened against the GBP for the second straight week. It traded at GH¢8.0159/£, compared with GH¢8.0643/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.60% and 1.77% respectively against the GBP. This compares with YTD appreciation of 1.04% a year ago.
The Cedi also strengthened against the Euro for the week. It traded at GH¢6.8680/€, compared with GH¢6.8805/€ at week open, reflecting w/w and YTD appreciations of 0.18% and 2.86% respectively against the Euro. This compares with YTD depreciation of 6.25% a year ago.
The Cedi weakened against the CAD on the week. It opened at GH¢4.5990/C$ but closed at GH¢4.6207/C$, reflecting w/w and YTD depreciations of 0.47% and 1.98% respectively against the CAD. This compares with YTD appreciation of 0.36% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 20-09-21 24-09-21
USD/GHS 5.7602 5.8630 5.8643 -0.02 -1.78
GBP/GHS 7.8742 8.0643 8.0159 0.60 -1.77
EUR/GHS 7.0643 6.8805 6.8680 0.18 2.86
CAD/GHS 4.5292 4.5990 4.6207 -0.47 -1.98
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢2,077.99 million for the week across the 91-Day and 182-Day Treasury Bills and a 2-Year Treasury Note. This compares with GH¢1,207.26 million raised in the previous week.
The 91-Day bill remained unchanged at 12.49% whilst the 182-Day bill and the 2-Year Note added 5bps and 25bps each to settle at 13.22% p.a. and 17.50% p.a. respectively.
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 17-09-21 24-09-21
91 Day TB 14.10 12.49 12.49 -0.02 -11.37
182 Day TB 14.15 13.17 13.22 0.32 -6.60
364 Day TB 16.96 16.14 16.14 0.00 -4.88
2-Yr FXR TN 18.50 17.25 17.50 1.45 -5.41
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 18.80 18.80 0.00 -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 fifth straight week assisted by shortages in supply. Brent futures traded at US$78.09 a barrel on Friday, reflecting w/w and YTD gains of 3.65% and 50.75% respectively.
Gold prices were largely unchanged for the week. Gold futures settled at US$1,751.70 per ounce on Friday, reflecting w/w gain and YTD loss of 0.02% and 7.57% respectively.
Prices of Cocoa eased for the week. Cocoa futures settled at US$2,591.00 per tonne on Friday, reflecting w/w and YTD losses of 2.78% and 0.46% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-21 20-09-21 24-09-21
Brent crude oil (USD/bbl)
51.80 75.34 78.09
3.65
50.75

Gold (USD/t oz.)
1,895.10 1,751.40 1,751.70
0.02
-7.57

Cocoa (USD/MT)
2,603.00 2,665.00 2,591.00
-2.78
-0.46
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Impact investing: Impact investing is an investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains. Impact investments may take the form of numerous asset classes and may result in many specific outcomes. The point of impact investing is to use money and investment capital for positive social results.
Source: https://www.investopedia.com/terms/i/impact-investing.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.