info@businessghana.com
MACROECONOMIC INDICATORS
|
Q1, 2022 GDP Growth |
3.3% |
|
Average GDP Growth for 2022 |
3.3% |
|
2022 Projected GDP Growth |
3.7% |
|
BoG Policy Rate |
19.0% |
|
Weekly Interbank Interest Rate |
21.92% |
|
Inflation for Jul, 2022 |
31.7% |
|
End Period Inflation Target – 2022 |
28.5% |
|
Budget Deficit (% GDP) – May, 2022 |
5.0% |
|
2022 Budget Deficit Target (%GDP) |
6.6% |
|
Public Debt (billion GH¢) – Jun, 2022 |
393.4 |
|
Debt to GDP Ratio – Jun, 2022 |
78.3% |
STOCK MARKET REVIEW
The Ghana Stock Exchange strengthened for the week on the back of price gains by 4 counters. The GSE Composite Index (GSE CI) gained 163.96 points (+6.84%) to close at 2,560.49 points, reflecting year-to-date (YTD) loss of 8.20%. The GSE Financial Stocks Index (GSE FI) however lost 7.50 points (-0.36%) to close at 2,085.40 points, reflecting YTD loss of 3.09%.
Market capitalization inched up by 3.14% to close the week at GH¢64,802.35 million, from GH¢62,827.57 million at the close of the previous week. This reflects YTD increase of 0.48%.
Trading activity recorded a total of 4,660,329 shares valued at GH¢14,758,112.92 changing hands, compared with 66,164,780 shares, valued at GH¢50,649,299.41 in the preceding week.
MTN dominated volume of trades, accounting for 50.82% of shares traded for the week whiles New Gold dominated value of trades for the week, accounting for 53.80% of volumes traded.
The market ended the week with 4 advancers and 2 decliners as indicated on the table below. `
|
Price Movers for the Week |
|||
|
Equity |
Opening Price |
Closing Price |
Gain/Loss (%) |
|
MTNGH |
0.8 |
0.95 |
?18.75% |
|
SOGEGH |
0.96 |
1 |
?4.17% |
|
GLD |
157.2 |
163.5 |
?4.01% |
|
CAL |
0.75 |
0.76 |
?1.33% |
|
ETI |
0.15 |
0.14 |
?6.67% |
|
GCB |
5.00 |
4.99 |
?0.20% |
CURRENCY MARKET
The Cedi depreciated against the USD for the week. It traded at GH¢8.0571/$, compared with GH¢8.0001/$ at week open, reflecting w/w and YTD depreciations of 0.71% and 25.46% respectively. This compares with YTD depreciation of 1.06% a year ago.
The Cedi also weakened against the GBP for the week. It traded at GH¢9.7841/£, compared with GH¢9.6341/£ at week open, reflecting w/w and YTD loss of 1.53% and 16.94% respectively. This compares with YTD depreciation of 2.39% a year ago.
The Cedi also lost against the Euro for the week. It traded at GH¢8.2170/€, compared with GH¢8.1243/€ at week open, reflecting w/w and YTD depreciations of 1.77% and 17.44% respectively. This compares with YTD appreciation of 2.85% a year ago.
The Cedi again weakened against the Canadian Dollar for the week. It opened at GH¢6.1811/C$ but closed at GH¢6.3063/C$, reflecting w/w and YTD depreciations of 1.99% and 24.81% respectively. This compares with YTD depreciation of 2.67% a year ago.
|
Weekly Interbank Foreign Exchange Rates |
|||||
|
Currency Pair |
Year Open |
Week Open |
Week Close |
Change % |
YTD % |
|
|
01-01-22 |
08-08-22 |
12-08-22 |
|
|
|
USD/GHS |
6.0061 |
8.0001 |
8.0571 |
?0.71 |
?25.46 |
|
GBP/GHS |
8.1272 |
9.6341 |
9.7841 |
?1.53 |
?16.94 |
|
EUR/GHS |
6.8281 |
8.1243 |
8.2710 |
?1.77 |
?17.44 |
|
CAD/GHS |
4.7416 |
6.1811 |
6.3063 |
?1.99 |
?24.81 |
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,860.97 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills. This compared with GH¢1,301.71 million raised in the previous week.
The 91-Day Bill settled at 27.34% p.a from 27.04% p.a. last week whilst the 182-Day Bill settled at 28.73% p.a from 28.51% p.a. last week. The 364-Day Bill settled at 28.83% from 28.40% at last issue. 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 (%) |
|
|
01-01-22 |
08-08-22 |
12-08-22 |
|
|
|
91 Day TB |
12.53 |
27.04 |
27.34 |
?1.11 |
?118.29 |
|
182 Day TB |
13.21 |
28.51 |
28.73 |
?0.79 |
?117.49 |
|
364 Day TB |
16.64 |
28.40 |
28.83 |
?1.48 |
?73.19 |
|
2-Yr FXR TN |
19.75 |
21.50 |
21.50 |
0.00 |
8.86 |
|
3-Yr Bond |
20.50 |
29.85 |
29.85 |
0.00 |
45.61 |
|
5-Yr Bond |
21.00 |
22.30 |
22.30 |
0.00 |
6.19 |
|
6-Yr Bond |
18.80 |
21.75 |
21.75 |
0.00 |
15.69 |
|
7-Yr Bond |
18.10 |
18.10 |
18.10 |
0.00 |
0.00 |
|
10-Yr Bond |
19.75 |
19.75 |
19.75 |
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
Crude Oil prices settled up more than 3% after the International Energy Agency raised its oil demand growth forecast for this year, as soaring natural gas prices had some consumers switching to oil. Brent futures traded at US$98.15 a barrel on Friday, compared to US$94.92 at week open. This reflects a w/w and YTD gain of 3.40% and 26.19% respectively.
Gold prices drifted higher on the back of a drop in U.S. Treasury yields. Gold settled at US$1,815.50, from US$1,791.20 last week, reflecting w/w gain and YTD loss of 1.36% and 0.72% respectively.
Prices of Cocoa declined for the week. The commodity traded at US$2,352.00 per tonne on Friday, from US$2,305.00 last week, reflecting w/w gain and YTD loss of 2.04% and 6.67% respectively.
International Commodity Prices
|
Commodities |
Year Open |
Week Open |
Week Close |
Chg % |
YTD % |
|
|
01-01-22 |
08-08-22 |
12-08-22 |
|
|
|
Brent crude oil (USD/bbl) |
77.78 |
94.92 |
98.15 |
?3.40 |
?26.19 |
|
Gold (USD/t oz.) |
1,828.60 |
1,791.20 |
1,815.50 |
?1.36 |
?0.72 |
|
Cocoa (USD/MT) |
2,520.00 |
2,305.00 |
2,352.00 |
?2.04 |
?6.67 |
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Bank Run: A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency.
Source: https://www.investopedia.com/terms/b/bankrun.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
DisclaimerThe 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.
