WEEKLY MARKET REVIEW FOR WEEK ENDING AUGUST 20, 2021?

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 12.61%
Inflation for July, 2021 9.0%
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 strengthened for the week supported by gains in Unilever Ghana PLC and Enterprise Group PLC. The GSE Composite Index (GSE CI) gained 10.67 points (+0.39%) to close at 2,754.92 points, reflecting year-to-date (YTD) gain of 41.89%. The GSE Financial Stocks Index (GSE FI) also gained 0.30 points (+0.02%) to close at 1,909.91 points, reflecting YTD gain of 7.13%.

Market capitalization at the end of the week was GH¢62,787.14 million, representing 0.18% increase from GH¢62,675.43 million at the close of the previous week. This reflects YTD increase of 15.47%.
Trading activity improved for the week relative to the prior week. A total of 7,264,947 shares valued at GH¢10,424,148.79 changed hands for the week compared with 2,483,897 shares, valued at GH¢4,099,877.22 in the preceding week.
MTN Ghana dominated both volume and value of trades for the week, accounting for 87.42% and 76.76% of total volume and value of shares traded respectively.
The market closed the week with 2 price advancers and no decliners as indicated on the table below.
Price Movers for the Week
Equity Opening Price Closing Price Gain/Loss (%)
Unilever Ghana PLC. 2.92 4.68 60.27
Enterprise Group PLC. 1.95 1.96 0.51

5 Best & Worst Performing Stocks
Best 5 Performing Stocks: YTD Return
MTN Ghana Ltd. 96.88%
Guinness Ghana Breweries Ltd. 66.67%
Societe Generale Ghana PLC 48.44%
Total Petroleum Ghana Ltd. 48.41%
Enterprise Group Ltd. 40.00%

Worst 5 Performing Stocks:
SIC Insurance Company Ltd. -12.50%
Access Bank Ghana PLC -20.50%
Ecobank Transnational Inc. -25.00%
Cocoa Processing Co. Ltd. -33.33%
Unilever Ghana PLC -43.55%

CURRENCY MARKET
The Cedi weakened against the USD for the week. It traded at GH¢5.8336/$ on Friday, against GH¢5.8221/$ at week open, reflecting w/w and YTD depreciations of 0.20% and 1.26% respectively against the USD. This compares with the YTD depreciation of 2.63% a year ago.
The Cedi meanwhile strengthened against the GBP on the week. It traded at GH¢7.9439/£, compared with GH¢8.0674/£ at week open, reflecting w/w appreciation and YTD depreciation of 1.55% and 0.88% respectively against the GBP. This compares with YTD depreciation of 1.68% a year ago.
The Cedi also strengthened against the Euro for the week. It traded at GH¢6.8127/€, compared with GH¢6.8685/€ at week open, reflecting w/w and YTD appreciations of 0.82% and 3.69% respectively against the Euro. This compares with YTD depreciation of 7.23% a year ago.
The Cedi again strengthened against the CAD on the week. It opened at GH¢4.6535/C$ but closed at GH¢4.5387/C$, reflecting w/w appreciation and YTD depreciation of 2.53% and 0.21% respectively against the CAD. This compares with YTD depreciation of 0.84% a year ago.
Weekly Interbank Foreign Exchange Rates
Currency Pair Year Open Week Open Week Close Change
% YTD
%
01-01-21 16-08-21 20-08-21
USD/GHS 5.7602 5.8221 5.8336 -0.20 -1.26
GBP/GHS 7.8742 8.0674 7.9439 1.55 -0.88
EUR/GHS 7.0643 6.8685 6.8127 0.82 3.69
CAD/GHS 4.5292 4.6535 4.5387 2.53 -0.21
Source: Bank of Ghana

GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢642.33 million for the week across the 91-Day and 182-Day Treasury Bills. This compared with GH¢1,316.55 million raised in the previous week.
The 91-Day and 182-Day Bills lost 5bps each to settle at 12.42% p.a. and 13.21% p.a respectively.
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 13-08-21 20-08-21
91 Day TB 14.10 12.47 12.42 -0.38 -11.87
182 Day TB 14.15 13.26 13.21 -0.36 -6.66
364 Day TB 16.96 16.11 16.11 0.00 -5.01
2-Yr FXR TN 18.50 17.25 17.25 0.00 -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 slumped for the week as investors anticipate weakened demand for oil on the back of rising Covid-19 cases. Brent futures traded at US$65.18 a barrel on Friday, reflecting w/w loss and YTD gain of 7.66% and 25.83% respectively.
Gold prices tallied gains for the second straight week on the back of the takeover of the Afghan Government by the Talibans and increasing cases of the Delta variant. Gold futures settled at US$1,784.00 per ounce on Friday, reflecting w/w gain and YTD loss of 0.33% and 5.86% respectively.
Prices of Cocoa posted gains for the seventh straight week. Cocoa futures settled at US$2,580.00 per tonne on Friday, reflecting w/w gain and YTD loss of 1.34% and 0.88% respectively.
International Commodity Prices
Commodities Year Open Week Open Week Close Chg
% YTD
%
01-01-21 16-08-21 20-08-21
Brent crude oil (USD/bbl)
51.80 70.59 65.18
-7.66
25.83

Gold (USD/t oz.)
1,895.10 1,778.20 1,784.00
0.33
-5.86

Cocoa (USD/MT)
2,603.00 2,546.00 2,580.00
1.34
-0.88
Source: www.investing.com

BUSINESS TERM OF THE WEEK
Bootstrapping: Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when they attempt to found and build a company from personal finances or the operating revenues of the new company. Bootstrapping also describes a procedure used to calculate the zero-coupon yield curve from market figures.
Source: https://www.investopedia.com/terms/b/bootstrapping.asp

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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.