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 12.65%
Inflation for September, 2021 10.6%
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 posted by 5 counters. The GSE Composite Index (GSE CI) gained 67.28 points (+2.53%) to close at 2,931.58 points, reflecting year-to-date (YTD) gain of 50.99%. The GSE Financial Stocks Index (GSE FI) on the other hand lost 3.05 points (-0.15%) to close at 2,079.08 points, reflecting year-to-date (YTD) gain of 16.62%.

Market capitalization at the end of the week was GH¢64,974.60 million, representing 1.10% increase from GH¢ 64,270.46 million at the close of the previous week. This reflects YTD increase of 19.49%.
Trading activity declined for the week relative to activity in the prior week. A total of 2,325,589 shares valued at GH¢7,131,381.41 changed hands for the week compared with 2,365,079 shares, valued at GH¢3,558,010.97 in the preceding week.
GCB dominated both volume and value of trades for the week, accounting for 47.23% and 81.3% respectively of total 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 (%)
Benso Oil Palm Plantation 5.00 6.05 21.00%
Scancom PLC 1.21 1.27 4.96%
NewGold 104.25 108.60 4.17%
Cal Bank PLC 0.76 0.78 2.63%
Enterprise Group Ltd. 2.51 2.52 0.40%
GCB Bank PLC 5.37 5.25 -2.23%
Fan Milk Ltd. 4.50 4.05 -10.00%

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
Fan Milk Ltd. 275.00%
Benso Oil Palm Plantation 202.50%
Guinness Ghana Breweries Ltd. 101.11%
MTN Ghana Ltd. 98.44%
Societe Generale Ghana PLC 87.50%

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 marginally against the USD for the week. It traded at GH¢5.9015/$ on Friday, against GH¢5.9009/$ at week open, reflecting w/w and YTD depreciations of 0.01% and 2.39% respectively against the USD. This compares with YTD depreciation of 3.10% a year ago.
The Cedi meanwhile strengthened against the GBP for the second straight week. It traded at GH¢7.9550/£, compared with GH¢8.0816/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.59% and 1.02% respectively against the GBP. This compares with YTD depreciation of 2.22% a year ago.
The Cedi also strengthened against the Euro for the week. It traded at GH¢6.8111/€, compared with GH¢6.8231/€ at week open, reflecting w/w and YTD appreciations of 0.18% and 3.72% respectively against the Euro. This compares with YTD depreciation of 8.24% a year ago.
The Cedi again strengthened against the CAD on the week. It opened at GH¢4.7601/C$ but closed at GH¢4.7348/C$, reflecting w/w appreciation and YTD depreciation of 0.53% and 4.34% respectively against the CAD. This compares with YTD depreciation of 2.34% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 01-11-21 05-11-21
USD/GHS 5.7602 5.9009 5.9015 -0.01 -2.39
GBP/GHS 7.8742 8.0816 7.9550 1.59 -1.02
EUR/GHS 7.0643 6.8231 6.8111 0.18 3.72
CAD/GHS 4.5292 4.7601 4.7348 0.53 -4.34
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢2,752.63 million for the week across the 91-Day, 182-Day and 364-Day Treasury Bills, 2-Year Treasury Note and a Tap-Issue of the July 2026 6-Year Bond. This compares with GH¢563.34 million raised in the previous week.
The 91-Day, 182-Day and 364-Day bills added 3bps, 4bps and 5bps each to settle at 12.48% p.a., 13.16% p.a. and 16.29% p.a. respectively. The 2-Year Note also added 250bps to settle at 20.00% p.a. whilst the re-opened 6-Year Bond settled at a price range of 97.9735 – 96.8178.
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 29-10-21 05-11-21
91 Day TB 14.10 12.45 12.48 0.29 -11.44
182 Day TB 14.15 13.12 13.16 0.34 -6.97
364 Day TB 16.96 16.24 16.29 0.28 -3.99
2-Yr FXR TN 18.50 17.50 20.00 14.29 8.11
3-Yr Bond 19.25 19.00 19.00 0.00 -1.30
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 edged higher on Friday amid expectations that supplies will remain tight despite OPEC+ voting earlier in the week to keep production steady. The Commodity however settled lower for the second straight week. Brent futures traded at US$82.35 a barrel on Friday, reflecting w/w loss and YTD gain of 2.41% and 58.98% respectively.
Gold prices firmed up for the week following a decision by the U.S. Federal Reserve to begin its asset tapering program in November. Gold futures settled at US$1,819.95 per ounce on Friday, reflecting w/w gain and YTD loss of 2.02% and 3.97% respectively.
Prices of Cocoa traded losses for the week. Cocoa futures settled at US$2,400.50 per tonne on Friday, reflecting w/w and YTD losses of 5.64% and 7.78% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-21 01-11-21 05-11-21
Brent crude oil (USD/bbl)
51.80 84.38 82.35
-2.41
58.98
Gold (USD/t oz.)
1,895.10 1,783.90 1,819.95
2.02
-3.97
Cocoa (USD/MT)
2,603.00 2,544.00 2,400.50
-5.64
-7.78
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Acceleration Clause: An acceleration clause is a contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain requirements are not met. An acceleration clause outlines the reasons that the lender can demand loan repayment and the repayment required. It is also known as acceleration covenant.
Source: https://www.investopedia.com/terms/a/acceleration-clause.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.