MACROECONOMIC INDICATORS

2019 GDP 6.5%
Projected GDP for 2019 7.1%
BoG Policy Rate – May 2020 14.50%
Weekly Interbank Interest Rate 13.84%
Inflation for Apr, 2020 10.6%
End Period Inflation Target - 2020 8.0%
Budget Deficit (% GDP) – Mar, 2020 3.4%
2020 Budget Deficit Target (%GDP) 7.8%
Public Debt (billion GH¢) – Mar, 2020 236.1
Debt to GDP Ratio – Mar, 2020 59.3%

STOCK MARKET REVIEW
The stock market closed stronger in the review week on the back of a lone advancer. The GSE Composite Index (GSE CI) gained 19.60 points (1.01%) to close at 1,960.63 points, compared to 1,941.03 points at the close of the previous week. This translates into a year-to-date (YTD) loss of 13.14%. The GSE Financial Stocks Index shed 6.31 points to close the week at 1,836.79 points, translating into YTD loss of 9.05%.

Market capitalization increased by 0.38% for the week from GH¢53,542.60 million at the close of the previous week to GH¢53,745.96 million at the close of the week. This represents YTD decline of 5.36%.
There was less activity on the market compared with that of the preceding week. A total of 17,567,772 shares, valued at GH¢11,727,955.70 changed hands for the week, compared with 35,404,330 shares valued at GH¢21,112,450.95 recorded in the preceding week. MTNGH dominated both volume and value of shares traded for the week. MTNGH accounted for 95.04% (16,695,574 shares) of total volume of shares traded and 80.85% (GH¢9,482,275.42) of total value of shares traded for the week.
The market closed on Friday with four laggards and a lone gainer. Fan Milk Ltd. led the laggards for the week after closing trading at GH¢2.45 from GH¢3.38 (-27.51%) at week open. MTN Ghana Ltd., the sole advancer, closed at GH¢0.58 from GH¢0.55 (+5.45%) at week open.
Thirty-five (35) counters remained flat at the closing bell on Friday.
The graphs and table below highlight activity on the market during the week.

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Best 5 &Worst 5 Performing Stocks
Best Performing Stocks: YTD Return
SIC Insurance Company Ltd. 25.00%
Camelot Ghana Ltd. 22.22%
Dannex Ayrton Starwin Plc. 2.56%
SCB Preference Share 1.16%

Worst Performing Stocks:
Fan Milk Ltd. -40.53%
Intraveneous Infusion Ltd -40.00%
CAL -21.35%
Total Petroleum Ghana Ltd. -20.00%
Guinness Ghana Breweries Ltd. -17.16%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.6230/$ on Friday, compared with GH¢5.6203/$ at week open, reflecting w/w and YTD depreciations of 0.05% and 1.59% respectively against the USD. This compares with YTD depreciation of 7.77% a year ago.
The Cedi also weakened against the Euro for the week. It traded at GH¢6.3605/€, compared with GH¢6.2406/€ at week open, reflecting w/w and YTD depreciations of 1.89% and 2.34% respectively against the Euro. This compares with YTD depreciation of 6.95% a year ago.
The Cedi likewise weakened against the GBP on the week. It traded at GH¢7.1415/£, compared with GH¢6.9186/£ at week open, reflecting w/w depreciation and YTD appreciation of 3.12% and 2.45% respectively against the GBP. This compares with YTD depreciation of 7.32% a year ago.
The Cedi again weakened against the CAD for the week. It opened trading at GH¢4.0689/C$ but closed at GH¢4.1927/C$, reflecting w/w depreciation and YTD appreciation of 2.95% and 1.80% respectively against the CAD. This compares with YTD depreciation of 10.10% a year ago.

Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01/01/20 01/06/20 05/06/20
USD/GHS 5.5337 5.6203 5.6230 -0.05 -1.59
GBP/GHS 7.3164 6.9186 7.1415 -3.12 2.45
EUR/GHS 6.2114 6.2406 6.3605 -1.89 -2.34
CAD/GHS 4.2681 4.0689 4.1927 -2.95 1.80
Source: Bank of Ghana

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GOVERNMENT SECURITIES MARKET
Government raised a total of GH¢921.23 million in the week under review across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,327.10 million raised in the previous week.
The 91–Day and 182-Day Bills shed 7bps and 1bp to settle at 13.95% and 14.06% respectively.
Please see below for more details.
Security Year Open Previous Yield % Current Yield % Chg % YTD %
01/01/20 29/05/20 05/06/20
91 Day TB 14.70 14.02 13.95 -0.49 -5.07
182 Day TB 15.15 14.07 14.06 -0.12 -7.20
364 Day TB 17.90 16.88 16.88 0.00 -5.69
2-Yr FXR TN 20.95 18.75 18.75 0.00 -10.50
3-Yr Bond 19.7 18.85 18.85 0.00 -4.31
5-Yr Bond 19.50 21.70 21.70 0.00 11.28
6-Yr Bond 21.00 21.00 21.00 0.00 0.00
7-Yr Bond 16.25 16.25 16.25 0.00 0.00
10-Yr Bond 19.8 19.8 19.8 0.00 0.00
15-Yr Bond 19.75 19.75 19.75 0.00 0.00
20-Yr Bond 20.2 20.2 20.2 0.00 0.00
Source: Bank of Ghana

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COMMODITY MARKET
Gold prices closed higher on the week supported by a positive U.S. jobs data for the month of May. Gold futures settled at US$1,683.00 per ounce on Friday, reflecting w/w loss and YTD gain of 3.92% and 10.65% respectively.
Oil prices tallied gains on the week following an agreement by OPEC and its allies to extend production cuts till July 2020. Brent futures traded at US$42.30 a barrel on Friday, reflecting w/w gain and YTD loss of 19.73% and 35.91% respectively.
Prices of Cocoa posted losses for the week. Cocoa futures settled at US$2,398.00 per tonne on Friday, reflecting w/w and YTD losses of 2.28% and 5.599% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg% YTD %
01/01/20 01/06/20 05/06/20
Brent crude oil (USD/bbl)
66.00 35.33 42.30
19.73
-35.91
Gold (USD/t oz.)
1,520.95 1,751.70 1,683.00
-3.92
10.65
Cocoa (USD/MT)
2,540.00 2,454.00 2,398.00
-2.28
-5.59
Source: www.investing.com

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BUSINESS TERM OF THE WEEK
Key Performance Indicators (KPIs): A set of measures that help a company determine if it is reaching its performance and operational goals. Indicators can be both financial and non-financial, and there is no one set of indicators used by all companies. An example of a financial indicator is same store sales for a retail clothing chain, while an example of a non-financial indicator is the benefits created by hiring new executives.
Source: www.investorwords.com

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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.