WEEKLY MARKET REVIEW FOR WEEK ENDING
NOVEMBER 12, 2021
|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||12.63%|
|Inflation for October, 2021||11.00%|
|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 39.42 points (+1.34%) to close at 2,971.00 points, reflecting a year-to-date (YTD) gain of 53.09%. The GSE Financial Stocks Index (GSE FI) on the other hand lost 5.62 points (-0.27%) to close at 2,073.46 points, reflecting a year-to-date (YTD) gain of 16.31%.
Market capitalization at the end of the week was GH¢65,387.14 million, representing a 0.63% increase from GH¢64,974.60 million at the close of the previous week. This reflects YTD increase of 20.25%.
Trading activity increased for the week relative to activity in the prior week. A total of 5,904,116 shares valued at GH¢7,085,184.54 changed hands for the week compared with 2,325,589 shares, valued at GH¢3,558,010.97 in the preceding week.
MTN dominated both volume and value of trades for the week, accounting for 65.75% and 70.7% 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||6.05||6.65||9.92%|
|Cal Bank PLC||0.78||0.82||5.13%|
|Enterprise Group PLC.||2.52||2.53||0.40%|
|Unilever Ghana PLC||5.90||5.89||-0.17%|
|Access Bank PLC||3.49||3.15||-9.74%|
|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%|
The Cedi weakened against the USD for the week. It traded at GH¢5.9031/$ on Friday, against GH¢5.9015/$ at week open, reflecting w/w and YTD depreciations of 0.03% and 2.42% respectively against the USD. This compares with YTD depreciation of 3.12% a year ago.
The Cedi on the other hand strengthened against the GBP for the reporting week. It traded at GH¢7.9182/£, compared with GH¢7.9550/£ at week open, reflecting w/w appreciation and YTD depreciation of 0.46% and 0.56% respectively against the GBP. This compares with YTD depreciation of 2.66% a year ago.
The Cedi also strengthened against the Euro for the week. It traded at GH¢6.7599/€, compared with GH¢6.8111/€ at week open, reflecting w/w and YTD appreciations of 0.76% and 4.50% respectively against the Euro. This compares with YTD depreciation of 8.02% a year ago.
The Cedi likewise strengthened against the CAD on the week. It opened at GH¢4.7348/C$ but closed at GH¢4.7031/C$, reflecting w/w appreciation and YTD depreciation of 0.68% and 3.70% respectively against the CAD. This compares with YTD depreciation of 1.84% a year ago.
|Weekly Interbank Foreign Exchange Rates|
|Currency Pair||Year Open||Week Open||Week Close||Change%||YTD %|
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,236.61 million for the week across the 91-Day and 182-Day Treasury Bills, compared to GH¢2,752.63 million raised in the previous week.
The 91-Day bill settled at 12.48% p.a., recording no change for the week whilst the 182-Day bill added 6bps to settle at 13.22% p.a.
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 (%)|
|91 Day TB||14.10||12.48||12.48||0.01||-11.44|
|182 Day TB||14.15||13.16||13.22||0.40||-6.60|
|364 Day TB||16.96||16.29||16.29||0.00||-3.99|
|2-Yr FXR TN||18.50||20.00||20.00||0.00||8.11|
Source: Bank of Ghana
Oil prices fell on Friday, wiping out gains from the previous session, on the back of concerns on the Federal Reserve accelerating plans to boost interest rates to tame inflation. The Commodity settled lower for the second straight week. Brent futures traded at US$82.17 a barrel on Friday, reflecting w/w loss and YTD gain of 0.22% and 58.63% respectively.
Gold prices eased on Friday, following pressure from a strong dollar but closed higher for the week boosted by inflation concerns. Gold futures settled at US$1,868.50 per ounce on Friday, reflecting w/w gain and YTD loss of 2.67% and 1.40% respectively.
Prices of Cocoa appreciated for the week. Cocoa futures settled at US$2,470.00 per tonne on Friday, reflecting w/w appreciation and YTD loss of 2.90% and 5.11% respectively.
International Commodity Prices
|Commodities||Year Open||Week Open||Week Close||Chg
|Brent crude oil (USD/bbl)||51.80||82.35||82.17||-0.22||58.63|
|Gold (USD/t oz.)||1,895.10||1,819.95||1,868.50||2.67||-1.40|
BUSINESS TERM OF THE WEEK
Accretion: Accretion is the gradual and incremental growth of assets and earnings due to business expansion, a company’s internal growth, or a merger or acquisition.
In finance, accretion is also the accumulation of the additional income an investor expects to receive after purchasing a bond at a discount and holding it until maturity. The most well-known applications of financial accretion include zero-coupon bonds or cumulative preferred stock.
CIDAN Investments Limited is an investment and fund management company licensed by the Securities & Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA).
Name: Ernest Tannor
Tel:+233 (0) 20 881 8957
Name: Audrey Asiedua Wiafe
Tel:+233 (0) 57 840 2700
CIDAN Investments Limited
Plot No. 169 Block 6
Haatso, North Legon – Accra
Tel: +233 (0) 26171 7001/ 26 300 3917
Fax: +233 (0)30 254 4351
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.