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 12.63%
Inflation for June, 2021 7.8%
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 5 counters. The GSE Composite Index (GSE CI) gained 66.38 points (2.50%) to close at 2,717.30 points reflecting year-to-date (YTD) gain of 39.95%. The GSE Financial Stocks Index (GSE FI) on the other hand lost 0.46 points (-0.02%) to close at 1,890.15 points, reflecting YTD gain of 6.02%.

Market capitalization at the end of the week was GH¢62,248.75 representing a 1.13% increase from GH¢61,551.37 million at the close of the previous week. This reflects YTD increase of 14.48%.
A total of 6,966,429 shares valued at GH¢12,211,697.25 changed hands for the week compared with 8,430,330 shares, valued at GH¢11,445,896.4 in the preceding week.
MTN Ghana dominated both volume and value of trades for the week, accounting for 84.70% and 60.39% of total volume and value of shares traded respectively.
The market closed the week with 5 price advancers and a lone decliner as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/Loss (%)
Unilever Ghana Ltd. 2.00 2.20 10.00
Total Petroleum Ghana Ltd. 3.65 4.00 9.59
Guinness Ghana Breweries Ltd. 1.41 1.50 6.38
Scancom PLC (MTNGH) 1.20 1.25 4.17
Fan Milk Ltd. 1.37 1.40 2.19
GCB Bank PLC 5.40 5.39 -0.19

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
MTN Ghana Ltd. 95.31%
Guinness Ghana Breweries Ltd. 66.67%
Societe Generale Ghana PLC 48.44%
Total Petroleum Ghana Ltd. 41.34%
GCB Bank PLC 33.09%

Worst 5 Performing Stocks:
Aluworks Limited -9.09%
SIC Insurance Company Ltd. -12.50%
Access Bank PLC -20.50%
Ecobank Transnational Inc. -25.00%
Unilever Ghana PLC -73.46%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.8011/$ on Friday, against GH¢5.8003/$ at week open, reflecting w/w and YTD depreciations of 0.01% and 0.71% respectively against the USD. This compares with YTD depreciation of 2.54% a year ago.
The Cedi also closed weaker against the GBP on the week. It traded at GH¢8.0633/£, compared with GH¢7.9809/£ at week open, reflecting w/w and YTD depreciations of 1.02% and 2.34% respectively against the GBP. This compares with YTD depreciation of 1.20% a year ago.
The Cedi again closed weaker against the Euro for the week. It traded at GH¢6.8808/€, compared with GH¢6.8280/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.77% and 2.67% respectively against the Euro. This compares with YTD depreciation of 7.22% a year ago.
The Cedi likewise weakened against the CAD on the week. It opened at GH¢4.6135/C$ but closed at GH¢4.6509/C$, reflecting w/w and YTD depreciations of 0.80% and 2.62% respectively against the CAD. This compares with YTD appreciation of 0.99% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD %
01-01-21 26-07-21 30-07-21
USD/GHS 5.7602 5.8003 5.8011 -0.01 -0.71
GBP/GHS 7.8742 7.9809 8.0633 -1.02 -2.34
EUR/GHS 7.0643 6.8280 6.8808 -0.77 2.67
CAD/GHS 4.5292 4.6135 4.6509 -0.80 -2.62
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢2,008.91 million for the week across the 91-Day and 182-Day Treasury Bills and a 2-Year Treasury Note. This compared with GH¢1,856.29 million raised in the previous week.
The 91-Day Bill lost 1bp to settle at 12.55% p.a. whilst the 182-Day Bill gained 1bp to close at 13.37% p.a. The 2-Year Note also shed 35bps to settle at 17.25% 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 23-07-21 30-07-21
91 Day TB 14.10 12.56 12.55 -0.11 -10.98
182 Day TB 14.15 13.36 13.37 0.06 -5.50
364 Day TB 16.96 16.40 16.40 0.00 -3.33
2-Yr FXR TN 18.50 17.60 17.25 -1.99 -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 19.25 0.00 -8.33
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 settled higher for the week following a huge drawdown in U.S. stockpiles. Brent futures traded at US$76.33 a barrel on Friday, reflecting w/w and YTD gains of 3.01% and 47.36% respectively.
Gold prices closed higher for the week supported by a statement by the U.S. Federal Reserve Chairman suggesting that the Central Bank does not intend to raise interest rates in the near term. Gold futures settled at US$1,812.60 per ounce on Friday, reflecting w/w gain and YTD loss of 0.60% and 4.35% respectively.
Prices of Cocoa posted gains for the fourth straight week. Cocoa futures settled at US$2,366.00 per tonne on Friday, reflecting w/w gain and YTD loss of 1.94% and 9.10% respectively.

International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD %
01-01-21 26-07-21 30-07-21
Brent crude oil (USD/bbl) 51.80 74.10 76.33 3.01 47.36
Gold (USD/t oz.) 1,895.10 1,801.80 1,812.60 0.60 -4.35
Cocoa (USD/MT) 2,603.00 2,321.00 2,366.00 1.94 -9.10
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Capital Buffer: A capital buffer is mandatory capital that financial institutions are required to hold in addition to other minimum capital requirements.
Source: https://www.investopedia.com/terms/c/capital-buffer.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.