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 12.66%
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 Exchange closed higher for the week supported by gains in 5 counters. The GSE Composite Index (GSE CI) gained 10.54 points (0.37%) to close at 2,868.71 points, reflecting year-to-date (YTD) gain of 47.75%. The GSE Financial Stocks Index (GSE FI) on the other hand shed 2.89 points (-0.14%) to close at 2,052.31 points, reflecting YTD gain of 15.12%.

Market capitalization at the end of the week was GH¢64,315.43 million, representing 0.17% increase from GH¢64,205.11 million at the close of the previous week. This reflects YTD increase of 18.28%.
Trading activity declined for the week relative to activity in the prior week. A total of 2,069,466 shares valued at GH¢3,911,407.05 changed hands for the week compared with 14,118,056 shares, valued at GH¢18,523,692.69 in the preceding week.
MTNGH dominated volume of trades for the week, accounting for 49.14% of total shares traded. Fan Milk Limited also dominated total trades by value, accounting for 50.37% of total value of shares traded.
The market closed the week with 5 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. 3.53 5.08 43.91
Benso Oil Palm Plantation 2.86 3.45 20.63
Guinness Ghana Breweries Ltd. 1.65 1.81 9.70
Cal Bank PLC 0.74 0.77 4.05
NewGold 102.50 104.25 1.71
Scancom PLC (MTNGH) 1.24 1.23 -0.81
Societe Generale Ghana PLC 1.25 1.20 -4.00

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
Fan Milk Ltd. 370.37%
Guinness Ghana Breweries Ltd. 101.11%
MTN Ghana Ltd. 92.19%
Societe Generale Ghana PLC 87.50%
Benso Oil Palm Plantation 72.50%

Worst 5 Performing Stocks:
Mega African Capital Ltd -9.87%
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 fourth straight week. It traded at GH¢5.8688/$ on Friday, against GH¢5.8663/$ at week open, reflecting w/w and YTD depreciations of 0.04% and 1.85% respectively against the USD. This compares with YTD depreciation of 2.97% a year ago.
The Cedi also weakened against the GBP for the week. It traded at GH¢8.0049/£, compared with GH¢7.9462/£ at week open, reflecting w/w and YTD depreciations of 0.78% and 1.68% respectively against the GBP. This compares with YTD depreciation of 1.33% a year ago.
The Cedi however strengthened against the Euro for the week. It traded at GH¢6.7938/€, compared with GH¢6.8024/€ at week open, reflecting w/w and YTD appreciations of 0.13% and 3.98% respectively against the Euro. This compares with YTD depreciation of 7.83% a year ago.
The Cedi weakened against the CAD on the week. It opened at GH¢4.6293/C$ but closed at GH¢4.7098/C$, reflecting w/w and YTD depreciations of 1.71% and 3.83% respectively against the CAD. This compares with YTD depreciation of 1.67% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 04-10-21 08-10-21
USD/GHS 5.7602 5.8663 5.8688 -0.04 -1.85
GBP/GHS 7.8742 7.9462 8.0089 -0.78 -1.68
EUR/GHS 7.0643 6.8024 6.7938 0.13 3.98
CAD/GHS 4.5292 4.6293 4.7098 -1.71 -3.83
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢993.39 million for the week across the 91-Day and 182-Day Treasury Bills. This compares with GH¢808.07 million raised in the previous week.
The 91-Day remained unchanged at 12.47% p.a. whilst the 182-Day bill shed 3bps to settle at 13.15% 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 01-10-21 08-10-21
91 Day TB 14.10 12.47 12.47 0.01 -11.50
182 Day TB 14.15 13.18 13.15 -0.19 -7.05
364 Day TB 16.96 16.21 16.21 0.00 -4.43
2-Yr FXR TN 18.50 17.50 17.50 0.00 -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 seventh straight week fueled by increased demand for the product and supply constraints. Brent futures traded at US$82.39 a barrel on Friday, reflecting w/w and YTD gains of 3.92% and 59.05% respectively.
Gold prices went down marginally for the week. Gold futures settled at US$1,757.40 per ounce on Friday, reflecting w/w and YTD losses of 0.06% and 7.27% respectively.
Prices of Cocoa posted gains for the second straight week. Cocoa futures settled at US$2,750.00 per tonne on Friday, reflecting w/w and YTD gains of 1.48% and 5.65% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-21 04-10-21 08-10-21
Brent crude oil (USD/bbl)
51.80 79.28 82.39
3.92
59.05

Gold (USD/t oz.)
1,895.10 1,758.40 1,757.40
-0.06
-7.27

Cocoa (USD/MT)
2,603.00 2,710.00 2,750.00
1.48
5.65
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Unearned Revenue: Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a "prepayment" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
Unearned revenue is also referred to as deferred revenue and advance payments.
Source: https://www.investopedia.com/terms/u/unearnedrevenue.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.