MACROECONOMIC INDICATORS
Q3, 2022 GDP Growth |
2.9% |
Average GDP Growth for 2022 |
3.5% |
2022 Projected GDP Growth |
3.7% |
BoG Policy Rate |
27.00% |
Weekly Interbank Interest Rate |
25.21% |
Inflation for Dec, 2022 |
54.1% |
End Period Inflation Target – 2022 |
28.5% |
Budget Deficit (% GDP) – Sep, 2022 |
6.4% |
2022 Budget Deficit Target (%GDP) |
6.6% |
Public Debt (billion GH¢) – Sep, 2022 |
467.4 |
Debt to GDP Ratio – Sep, 2022 |
75.9% |
STOCK MARKET REVIEW
The Ghana Stock Exchange closed lower for the week on the back of price declines by 4 counters. The GSE Composite Index (GSE CI) lost 4.30 points (-0.18%) to close at 2,434.44 points, reflecting a year-to-date (YTD) loss of 0.39%. The GSE Financial Stocks Index (GSE FI) lost 2.17 points (-0.11%) to close the week at 2,044.98 points, reflecting a YTD loss of 0.37%.
Market capitalization decreased by 0.08% to close the week at GH¢64,553.59 million, from GH¢64,607.91 million at the close of the previous week. This reflects a YTD appreciation of 0.07%.
Trading activity recorded a total of 693,771 shares valued at GH¢1,535,678.12 changing hands, compared with 264,276 shares, valued at GH¢430,743.65 in the preceding week.
MTN dominated volume of trades for the week whiles GCB dominated value of trades, accounting for 47.48% and 67.51% of shares traded respectively.
The market ended the week with 1 advancer and 4 laggards as indicated on the table below. `
Price Movers for the Week |
|||
Equity |
Opening Price |
Closing Price |
Gain/Loss (%) |
BOPP |
7.65 |
8.00 |
?4.58% |
UNIL |
3.5 |
2.85 |
?18.57% |
CAL |
0.6 |
0.58 |
?3.33% |
GLD |
250 |
246.75 |
?1.30% |
GOIL |
1.72 |
1.71 |
?0.58% |
Source: Ghana Stock Exchange
CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢10.3559/$, compared with GH¢10.3357/$ at week open, reflecting w/w and YTD depreciations of 0.20% and 17.19% respectively. This compares with YTD depreciation of 0.06% a year ago.
The Cedi similarly weakened against the GBP for the week. It traded at GH¢12.7979/£, compared with GH¢12.6184/£ at week open, reflecting w/w and YTD depreciations of 1.40% and 19.43% respectively. This compares with YTD depreciation of 0.26% a year ago.
The Cedi again lost against the Euro for the week. It traded at GH¢11.2026/€, compared with GH¢11.1915/€ at week open, reflecting w/w and YTD depreciations of 0.10% and 18.36% respectively. This compares with YTD appreciation of 0.13% a year ago.
The Cedi meanwhile strengthened against the Canadian Dollar for the week. It opened at GH¢7.7052/C$ but closed at GH¢7.6866/C$, reflecting w/w gain and YTD depreciation of 13.49% and 17.95% respectively. This compares with YTD depreciation of 1.06% a year ago.
Weekly Interbank Foreign Exchange Rates |
|||||
Currency Pair |
Year Open |
Week Open |
Week Close |
Change % |
YTD % |
|
01-01-22 |
16-01-23 |
20-01-23 |
|
|
USD/GHS |
8.5760 |
10.3357 |
10.3559 |
?0.20 |
?17.19 |
GBP/GHS |
10.3118 |
12.6184 |
12.7979 |
?1.40 |
?19.43 |
EUR/GHS |
9.1457 |
11.1915 |
11.2026 |
?0.10 |
?18.36 |
CAD/GHS |
6.3222 |
7.7052 |
7.6866 |
?0.24 |
?17.75 |
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,930.74 million for the week across the 91-Day , 182-Day and 364-Day Treasury Bills. This compared with GH¢1,713.41 million raised in the previous week.
The 91-Day Bill settled at 35.63% p.a from 35.46% p.a. last week whilst the 182-Day Bill settled at 35.81% p.a from 35.83% p.a. last week. The 364-Day Bill settled at 35.56% p.a from 35.92% p.a. last week
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 (%) |
|
01-01-23 |
16-01-23 |
20-01-23 |
|
|
91 Day TB |
35.36 |
35.46 |
35.63 |
?0.48 |
?0.77 |
182 Day TB |
35.98 |
35.83 |
35.81 |
?0.07 |
?0.48 |
364 Day TB |
35.89 |
35.92 |
35.56 |
?0.99 |
?0.93 |
Source: Bank of Ghana
COMMODITY MARKET
Oil prices edged higher for the week on hopes the ending of COVID restrictions in China will result in a sharp increase in economic activity and thus demand for energy from the world’s largest crude importer. Brent futures traded at US$87.63 a barrel, compared to US$85.28 at week open, reflecting w/w and YTD appreciations of 2.76% and 2.00% respectively.
Gold prices maintained their luster for a fifth week in a row as bullish investors pushed toward a test of the $1,950 an ounce level at week end. Gold settled at US$1,928.20, from US$1,921.70 last week, reflecting w/w and YTD appreciations of 0.34% and 5.59% respectively.
The price of Cocoa recorded a decrease for the week. The commodity traded at US$2,569.00 per tonne on Friday, from US$2,651.00 last week, reflecting w/w and YTD depreciations of 3.09% and 1.19% respectively.
International Commodity Prices
Commodities |
Year Open |
Week Open |
Week Close |
Chg % |
YTD % |
|
01-01-23 |
16-01-23 |
20-01-23 |
|
|
Brent crude oil (USD/bbl) |
85.91 |
85.28 |
87.63 |
?2.76 |
?2.00 |
Gold (USD/t oz.) |
1,826.20 |
1,921.70 |
1,928.20 |
?0.34 |
?5.59 |
Cocoa (USD/MT) |
2,600.00 |
2,651.00 |
2,569.00 |
?3.09 |
?1.19 |
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Price Skimming: Price skimming is a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price-sensitive segment of the population.
Source: https://www.investopedia.com/terms/p/priceskimming.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).
RESEARCH TEAM
Name: Ernest Tannor
Email:etannor@cidaninvestments.com
Tel:+233 (0) 20 881 8957
Name: Moses Nana Osei-Yeboah
Email:moyeboah@cidaninvestments.com
Tel:+233 (0) 24 499 0069
CORPORATE INFORMATION
CIDAN Investments Limited
CIDAN House
Plot No. 169 Block 6
Haatso, North Legon – Accra
Tel: +233 (0) 26171 7001/ 26 300 3917
Fax: +233 (0)30 254 4351
Email: info@cidaninvestmens.com
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.