|Q2, 2021 GDP Growth||3.9%|
|Average GDP Growth for 2021||3.5%|
|2021 Projected GDP Growth||5.0%|
|BoG Policy Rate||14.50%|
|Weekly Interbank Interest Rate||12.63%|
|Inflation for November, 2021||12.20%|
|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 dropped for the week on the back of movements by 2 counters. The GSE Composite Index (GSE CI) dropped 28.40 points (-1.01%) to close at 2,789.34 points, reflecting a year-to-date (YTD) gain of 43.66%. The GSE Financial Stocks Index (GSE FI) remained flat to close the year at 2,151.85 points, reflecting a year-to-date (YTD) gain of 20.70%.
Market capitalization at the end of the week was GH¢64,495.20 million, representing a drop of 0.46% from GH¢64,792.47 million at the close of the previous week. This reflects YTD increase of 18.61%.
Trading activity saw a total of 5,081,846 shares valued at GH¢6,716,737.26 changing hands for the week compared with 5,029,660 shares, valued at GH¢7,175,040.35 in the preceding week.
MTN dominated both volume and value of trades for the week, accounting for 86.57% and 74.00% respectively of total shares traded.
The market closed the week with no price gainers and 2 decliners as indicated on the table below.
|Price Movers for the Week|
|Equity||Opening Price||Closing Price||Gain/Loss (%)|
|Total Petroleum Ghana Ltd.||5.48||5.02||▼ 8.39|
|Scancom PLC||1.13||1.11||▼ 1.77|
The Cedi continued its downward trend against the USD for the week as it traded at GH¢6.0061/$ on Friday, compared to GH¢5.9809/$ at week open, reflecting w/w and YTD depreciations of 0.42% and 4.09% respectively against the USD. This compares with YTD depreciation of 3.93% a year ago.
The Cedi also recorded a dip against the GBP for the week as it traded at GH¢8.1272/£, compared with GH¢8.0572/£ at week open, reflecting w/w and YTD depreciations of 0.86% and 3.11% respectively against the GBP. This compares with YTD depreciation of 7.08% a year ago.
The Cedi also lost some grounds against the Euro for the week. It traded at GH¢6.8281/€, compared with GH¢6.7813/€ at week open, reflecting w/w depreciation and YTD appreciation of 0.69% and 3.46% respectively against the Euro. This compares with YTD depreciation of 12.07% a year ago.
Against the CAD, the Cedi depreciated on the week as it opened at GH¢4.6677/C$ but closed at GH¢4.6677/C$, reflecting w/w and YTD depreciation of 1.56% and 4.48% respectively against the CAD. This compares with YTD depreciation of 5.76% a year ago.
|Weekly Interbank Foreign Exchange Rates|
|Currency Pair||Year Open||Week Open||Week Close||Change
Source: Bank of Ghana
GOVERNMENT SECURITIES MARKET
Government raised a sum of GH¢1,476.02 billion for the week across the 91-Day, 182-Day and 364-Day Treasury bills and 3 Year FXR Bond, compared to GH¢540.57 million raised in the previous week.
The 91-Day gained 2bps to close at 12.53% p.a. from 12.51% last week. The 182-Day bill also inched up by 2bps to settle at 13.21% p.a. from 13.19% p.a last week. The 364-Day bill and3 Year FXR Bond settled at 16.64% p.a and 20.50% p.a, representing gains of 7bps and 150bps 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 (%)|
|91 Day TB||14.10||12.51||12.53||0.11||-11.14|
|182 Day TB||14.15||13.19||13.21||0.19||-6.63|
|364 Day TB||16.96||16.57||16.64||0.47||-1.89|
|2-Yr FXR TN||18.50||19.75||19.75||0.00||6.76|
Source: Bank of Ghana
Oil prices dipped on Friday against a mix of global economic recovery and production restraints, even as COVID-19 infections reached record highs around the world. Brent futures traded at US$77.78 a barrel on Friday, reflecting w/w loss and YTD gain of 1.04% and 50.15% respectively.
Gold prices settled at US$1,828.60 per ounce on Friday, reflecting w/w gain and YTD loss of 1.09% and 3.51% respectively. The yellow metal’s gains for the week was boosted by drops in U.S. Treasury yields and global stock markets.
Prices of Cocoa went up as the commodity traded at US$2,520.00 per tonne on Friday, reflecting w/w appreciation and YTD losses of 2.40% and 3.19% respectively.
International Commodity Prices
|Commodities||Year Open||Week Open||Week Close||Chg
|Brent crude oil (USD/bbl)||51.80||78.60||77.78||▼1.04||▲50.15|
|Gold (USD/t oz.)||1,895.10||1,808.80||1,828.60||▲1.09||▼3.51|
BUSINESS TERM OF THE WEEK
Money Laundering: Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.
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
Name: Moses Nana Osei-Yeboah
Tel:+233 (0) 24 499 0069
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.