info@businessghana.com
|
Q3, 2021 GDP Growth |
6.6% |
|
Average GDP Growth for 2021 |
4.5% |
|
2021 Projected GDP Growth |
5.0% |
|
BoG Policy Rate |
14.50% |
|
Weekly Interbank Interest Rate |
12.63% |
|
Inflation for December, 2021 |
12.60% |
|
End Period Inflation Target – 2021 |
8.0% |
|
Budget Deficit (% GDP) – Sep, 2021 |
7.7% |
|
2021 Budget Deficit Target (%GDP) |
9.5% |
|
Public Debt (billion GH¢) – Sep, 2021 |
341.8 |
|
Debt to GDP Ratio – Sep, 2021 |
77.8% |
STOCK MARKET REVIEW
The Ghana Stock Exchange improved for the week on the back of movements by 5 counters. The GSE Composite Index (GSE CI) gained 19.67 points (+0.72%) to close at 2,762.03 points, reflecting a year-to-date (YTD) loss of 0.98%. The GSE Financial Stocks Index (GSE FI) however lost 5.09 points (-0.24%) to close at 2,146.76 points, reflecting a year-to-date (YTD) loss of 0.24%.
Market capitalization inched up by 0.32% to close the week at GH¢64,213.36 million, from GH¢64,007.49 million at the close of the previous week. This reflects YTD decrease of 0.44%.
Trading activity witnessed a total of 1,521,398 shares valued at GH¢2,393,280.56 changing hands for the week compared with 25,055,278 shares, valued at GH¢26,515,940 in the preceding week.
MTN dominated both volume and value of trades for the week, accounting for 82.86% and 57.11% respectively of total shares traded.
The market closed the week with 2 price gainers and 3 decliners as indicated on the table below.
|
Price Movers for the Week |
|||
|
Equity |
Opening Price |
Closing Price |
Gain/Loss (%) |
|
Trust Bank Gambia Ltd |
0.34 |
0.35 |
?2.94% |
|
Scancom PLC |
1.07 |
1.09 |
?1.87% |
|
Fan Milk PLC. |
4.00 |
3.95 |
?1.25% |
|
Cal Bank PLC |
0.87 |
0.82 |
?5.75% |
|
PBC Ltd. |
0.03 |
0.02 |
?33.33% |
CURRENCY MARKET
The Cedi recorded no change against the USD for the second consecutive week. It traded at GH¢6.0063/$ on Friday, compared to GH¢6.0064/$ at week open, reflecting w/w and YTD depreciations of 0.00% and 0.00% respectively. This compares with YTD depreciation of 0.01% a year ago.
The Cedi recorded marginal depreciation against the GBP for the week as it traded at GH¢8.2181/£, compared with GH¢8.12575/£ at week open, reflecting w/w and YTD depreciations of 1.12% and 1.11% respectively. This compares with YTD appreciation of 0.53% a year ago.
The Cedi also lost against the Euro for the week as it traded at GH¢6.8630/€, compared with GH¢6.7939/€ at week open, reflecting w/w and YTD depreciations of 1.01% and 0.51% respectively. This compares with YTD appreciation of 1.43% a year ago.
The Cedi again depreciated on the week against the Canadian Dollar. It opened at GH¢4.7065/C$ but closed at GH¢4.7922/C$, reflecting w/w and YTD depreciations of 1.79% and 1.06 respectively. This compares with YTD appreciation of 0.24% a year ago.
|
Weekly Interbank Foreign Exchange Rates |
|||||
|
Currency Pair |
Year Open |
Week Open |
Week Close |
Change % |
YTD % |
|
|
01/01/22 |
10/01/22 |
14/01/22 |
|
|
|
USD/GHS |
6.0061 |
6.0064 |
6.0063 |
?0.00 |
?0.00 |
|
GBP/GHS |
8.1272 |
8.1258 |
8.2181 |
?1.12 |
?1.11 |
|
EUR/GHS |
6.8281 |
6.7939 |
6.8630 |
?1.01 |
?0.51 |
|
CAD/GHS |
4.7416 |
4.7065 |
4.7922 |
?1.79 |
?1.06 |
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,065.41 billion for the week across the 91-Day and 182-Day Treasury bills, compared to GH¢982.73 million raised in the previous week.
The 91-Day bill remained unchanged at 12.52% p.a whiles 182-Day bill gained 1bp to settle at 13.21% p.a. from 13.20% 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 (%) |
|
|
01/01/21 |
10/01/22 |
14/01/22 |
|
|
|
91 Day TB |
14.10 |
12.52 |
12.52 |
-0.03 |
-11.17 |
|
182 Day TB |
14.15 |
13.20 |
13.21 |
0.08 |
-6.65 |
|
364 Day TB |
16.96 |
16.64 |
16.64 |
0.00 |
-1.89 |
|
2-Yr FXR TN |
18.50 |
19.75 |
19.75 |
0.00 |
6.76 |
|
3-Yr Bond |
19.25 |
20.50 |
20.50 |
0.00 |
6.49 |
|
5-Yr Bond |
19.85 |
21.00 |
21.00 |
0.00 |
5.79 |
|
6-Yr Bond |
19.50 |
18.80 |
18.80 |
0.00 |
-3.59 |
|
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
Crude settled higher on Friday, notching a fourth positive week, as global demand seems to be holding up despite the surge in Omicron cases while supply remains tight. Brent futures traded at US$86.06 a barrel on Friday, reflecting w/w and YTD gains of 5.72% and 10.65%
Gold futures came under pressure amid a rise in Treasury yields on prospects of U.S. interest rate hikes and a recovery in the U.S. Dollar, following a two-week beat down.The yellow metal settled at $1,816.50 from US$1,797.40 last week, reflecting w/w gain and YTD loss of 1.06% and 0.66% respectively.
Prices of Cocoa inched up for the week as the commodity traded at US$2,659.00 per tonne on Friday, from US$2,521.00 last week ,reflecting w/w and YTD appreciation of 5.47% and 5.52% respectively.
International Commodity Prices
|
Commodities |
Year Open |
Week Open |
Week Close |
Chg % |
YTD % |
|
|
01/01/22 |
10/01/22 |
14/01/22 |
|
|
|
Brent crude oil (USD/bbl) |
77.78 |
81.75 |
86.06 |
?5.27 |
?10.65 |
|
Gold (USD/t oz.) |
1,828.60 |
1,797.40 |
1,816.50 |
?1.06 |
?0.66 |
|
Cocoa (USD/MT) |
2,520.00 |
2,521.00 |
2,659.00 |
?5.47 |
?5.52 |
Source: www.investing.com
BUSINESS TERM OF THE WEEK
Flat Yield Curve: The flat yield curve is a yield curve in which there is little difference between short-term and long-term rates for bonds of the same credit quality. This type of yield curve flattening is often seen during transitions between normal and inverted curves. The difference between a flat yield curve and a normal yield curve is that a normal yield curve slopes upward.
Source: https://www.investopedia.com/terms/f/flatyieldcurve.asp https://www.investopedia.com/terms/s/shadow-market.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.
