MACROECONOMIC INDICATORS

Q4, 2021 GDP Growth	7.0%
Average GDP Growth for 2021	5.4%
2022 Projected GDP Growth	5.5%
BoG Policy Rate	19.0%
Weekly Interbank Interest Rate	19.65%
Inflation for April, 2022	23.6%
End Period Inflation Target – 2022	8.0%
Budget Deficit (% GDP) – Mar, 2022	2.6%
2022 Budget Deficit Target (%GDP)	7.4%
Public Debt (billion GH¢)  – Mar, 2022	391.9
Debt to GDP Ratio – Mar, 2022	78.0%

 

STOCK MARKET REVIEW

The Ghana Stock Exchange weakened for the week on the back of a decline in Calbank PLC’s share price. The GSE Composite Index (GSE CI) lost 3.81 points (-0.15%) to close at 2,550.98 points, reflecting year-to-date (YTD) loss of 8.55%. The GSE Financial Stocks Index (GSE FI) also lost 6.93 points (-0.32%) to close at  2,185.64points, reflecting year-to-date (YTD) gain of 1.57%.

 

Market capitalization declined  by 0.06% to close the week at GH¢62,236.68 million, from GH¢62,276.58 million at the close of the previous week. This reflects YTD decline of 3.50%.

Trading activity registered a total of 10,552,896 shares valued at GH¢9,573,403.22 changing hands, compared with  4,796,801 shares, valued at GH¢4,288,986.32 in the preceding week.

MTN dominated both volume and value of trades for the week, accounting for 82.38% and 81.73% of volume and value of shares traded respectively.  

The market ended the week with 2 leaders and 1 laggard as indicated on the table below. `

Price  Movers for the Week
Equity	Opening Price	Closing Price	Gain/Loss       (%)
SIC	0.28	0.3	?7.14%
GLD	143.6	144.5	?0.63%
CAL	0.87	0.8	?8.05%

 

 

 

 

 

CURRENCY MARKET

The Cedi depreciated against the USD for the week. It traded at GH¢7.1461/$, compared with GH¢7.1413/$ at week open, reflecting w/w and YTD depreciations of 0.07% and 15.95% respectively. This compares with YTD appreciation of 0.23% a year ago.       

The Cedi appreciated against the GBP for the week. It traded at GH¢8.9416/£, compared with GH¢9.0020/£ at week open, reflecting w/w appreciation  and YTD depreciation of 0.67% and 9.11% respectively. This compares with YTD depreciation of 3.30% a year ago.

The Cedi  also lost  against  the Euro for the week. It traded at GH¢7.6604/€, compared with GH¢7.6440/€ at week open, reflecting w/w and YTD depreciations of 0.21% and 10.86% respectively. This compares with YTD appreciation of 1.02% a year ago.        

The Cedi further depreciated against the Canadian Dollar for the week. It opened at GH¢5.5951/C$ but closed at GH¢5.6792/C$, reflecting w/w and YTD depreciations of 1.48% and 16.51% respectively. This compares with YTD depreciation of 4.27% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair	Year Open	Week Open	Week Close	Change %	YTD %
	01/01/22	30/05/22	03/06/22
USD/GHS	6.0061	7.1413	7.1461	?0.07	?15.95
GBP/GHS	8.1272	9.0020	8.9416	?0.67	?9.11
EUR/GHS	6.8281	7.6440	7.6604	?0.21	?10.86
CAD/GHS	4.7416	5.5951	5.6792	?1.48	?16.51

 Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET

Government raised a sum of GH¢1,393.70 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,124.50 million raised in the previous week.

The 91-Day Bill settled at 22.57% p.a from 19.94% p.a. last week whilst the 182-Day Bill settled at 24.41% p.a from  22.95% 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 (%)
	01/01/22	30/05/22	03/06/22
91 Day TB	12.53	19.94	22.57	?13.22	?80.23
182 Day TB	13.21	22.95	24.41	?6.36	?84.77
364 Day TB	16.64	24.46	24.46	0.00	46.98
2-Yr FXR TN	19.75	21.50	21.50	0.00	8.86
3-Yr Bond	20.50	25.00	25.00	0.00	21.95
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 rose after U.S. crude inventories fell more than expected amid high demand for fuel, shrugging off OPEC+'s agreement to boost crude output to compensate for a drop in Russian production. Brent futures traded at US$119.72 a barrel on Friday, compared to US$119.43 at week open. This reflects w/w and YTD gains of 0.24% and 53.92% respectively.

Gold closed lower for the week, with the yellow metal caught between support from slightly lower U.S. Treasury yields and pressure from a firm dollar. Gold settled at US$1,850.20, from US$1,851.30 last week, reflecting w/w  loss and YTD  gain of 0.06% and 1.18% respectively.

Prices of Cocoa also inched up for the week. The commodity traded at US$2,469.00 per tonne on Friday, from US$2,462.00 last week, reflecting  w/w gain and YTD losses of 0.28% and 2.02% respectively.

International Commodity Prices

Commodities	Year Open	Week Open	Week Close	Chg %	YTD %
	01/01/22	30/05/22	03/06/22
Brent crude oil (USD/bbl)	77.78	119.43	119.72	?0.24	?53.92
Gold (USD/t oz.)	1,828.60	1,851.30	1,850.20	?0.06	?1.18
Cocoa (USD/MT)	2,520.00	2,462.00	2,469.00	?0.28	?2.02

Source: www.investing.com

 

BUSINESS TERM OF THE WEEK

Carry Trade: A carry trade is a trading strategy that involves borrowing at a low-interest rate and investing in an asset that provides a higher rate of return. A carry trade is typically based on borrowing in a low-interest rate currency and converting the borrowed amount into another currency. Generally, the proceeds would be deposited in the second currency if it offers a higher interest rate. The proceeds also could be deployed into assets such as stocks, commodities, bonds, or real estate that are denominated in the second currency.

Source:https://www.investopedia.com/carry-trade-definition-4682656

 

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.