BUSINESS NEWS | GHANA AND BEYOND 🌍 12/08/2020

🚩Based on the current trend, the Ghana Cedi is expected to end 2020 with a year-to-date depreciation of less than 5.0%. This would be better than the 8.33% loss over the same period last year. The local currency has since January 1, 2020 lost 24 pesewas to the American ‘green back’, approximately 2.60% in value to the US dollar. Many analysts have attributed the strong performance of the cedi to the Bank of Ghana’s bi-weekly Foreign Forward Auctions and Spot Market interventions, which is supported by healthy secondary reserves, equivalent to about 4.3 months of imports. Also, the loss in the value of the dollar to some global currencies on the external front, amid rise in covid-19 pandemic and political uncertainty in the US has benefited the cedi. Economic and currency analyst with Databank Research, Courage Mantey told Joy Business, “Overall we see foreign portfolio outflows from Ghana’s domestic market as the key risks to the cedi stability which could become pronounced as the elections approach in December 2020.

🚩The Government of Ghana is requesting for a Parliamentary approval to loan US$1.3 billion to finance the purchase of cocoa for the 2020/2021 crop season. This follows the regulator of cocoa, Ghana Cocoa Board (COCOBOD) giving the strongest assurance that its annual cocoa syndication loan facility will go ahead despite the COVID-19 pandemic. The request which was made on Monday, August 10, before the Finance Committee in the House also entails a presentation of an additional GH¢6.5 million in tax waivers. Consequently, after the request was made before the committee, it is expected that members are to debate and approve the request prior to their recess later this week. Meanwhile, government in 2019 signed the US$1.3 billion loan for the purchase of some 850,000 metric tonnes of cocoa beans from farmers for 2019/2020 crop season. The amount was a cocoa syndicated loan signed between COCOBOD and some international financial institutions.

🚩The Institute of Energy Security (IES), a think tank, has cautioned that the country’s power stability may be affected if the companies that owe the Ghana Grid Company (GRIDCo) do not repay their debts soon. The institute said aside from the Electricity Company of Ghana (ECG), the indebtedness of the Northern Electricity Distribution Company (NEDCo), the Volta Aluminum Company (VALCO) and some mining companies to GRIDCo has contributed to the financial woes of the power transmission company. “The debts owed by these companies to GRIDCo is rising to unprecedented levels and may likely render GRIDCo incapable of executing its critical projects that would make the national transmission system robust and improve the reliability of power supply,” the energy think tank told Business24. According to IES, ECG’s debt to GRIDCo has increased by 31 percent to GH¢1.11bn in June 2020 from GH¢850.99m at the end of 2019. NEDCo’s indebtedness increased from GH¢227.33m to GH¢270.47m over the same period, while VALCO’s went up from US$33.92m to US$35.36m.

🚩The Social Security and National Insurance Trust (SSNIT) has introduced the SSNIT Virtual Infozone, an information-sharing platform that allows the Trust to use various digital meeting channels such as Facebook Live, Zoom and WhatsApp to educate its members and the general public about the SSNIT Scheme and its benefits. The first SSNIT Virtual Infozone was live on Facebook on Wednesday, 5th August, 2020 and it will be on, every Wednesday at 4 pm. The SSNIT Virtual Infozone comes off the back of the effect of the novel Covid-19 pandemic which has impacted the Trust’s approach to business including the delivery of public education. Commenting on the SSNIT Virtual Infozone, the Corporate Affairs Manager, Ms. Afua Amankwa Sarkodie, said that it had become necessary for the Trust to conduct public education online, through the Trust’s digital media channels to ensure business continuity as the Trust observes the Covid-19 safety protocols to reduce the spread of infections.

🚩Parliament is considering the report of the Committee on Defence and Interior on the Security and Intelligence Agencies Bill, 2020, which when approved would provide for matters relating to the National Security Council (NSC). It would also lead to the establishment of regional and district security councils and to specify the agencies responsible for the State. Additionally, the Bill seeks to repeal the Security and Intelligence Agencies Act, 1996 (Act 526) to establish the required national security architecture to address emerging national security challenges, taking cognizance of some significant matters not catered for in Act 526.

🚩The 3% levy charged all consumers of electricity for street lighting has generated GH¢273.9million of revenue to government in 2018 and 2019, Energy Minister John Peter Amewu said when he appeared before Parliament to answer questions from members last Thursday. “In summary, a total amount of GH¢273,876,832 was collected by ECG, VRA and NEDCO for the intended purpose as indicated in the Energy Sector Levies (Amendment) Act, 2017, (Act 946) for 2018 and 2019,” Energy Minister John Peter Amewu said when he appeared before Parliament to answer questions from members last Thursday.

Out of that amount, the minister noted GH¢134,266,116 was collected in 2018, and GH¢139,610,716 collected the following year. Meanwhile, in his account he also indicated that out of the total amount only GH¢64.5million has been utilised by the Ministry of Energy for payment of energy consumed by traffic, streets, and public lights, as well as the investment and maintenance of same as required by the Energy Sector Levies (Amendment) Act, 2017, (Act 946).

🚩Kosmos Energy has reported a second-quarter loss of US$199 million after reporting a profit in the same period a year earlier. The Dallas-based company said it had a loss of 49 cents. Losses adjusted for one-time gains and costs were 23 cents per share. Meanwhile, the independent oil and gas Company posted revenue of US$127.3 million in the same period. The company’s shares closed at US$1.61. A year ago, they were trading at US$5.87. Despite the recent stabilising of oil prices, the

COVID-19 pandemic and its economic impact continue to create a challenging environment for the oil and gas sector. “Kosmos’ response remains focused on safe and reliable operations by protecting the health of our employees and contractors, reducing the risk of the virus spreading in our operations and minimizing the impact on our business.

🚩Loyalty Insurance Company Limited has introduced a digital payment and reward system for the benefit of its clients and intermediaries. The Loyalty Insurance digital platform is a customer relationship management and loyalty reward system that features an instant digital reward scheme through an enjoyable and time-sensitive online platform to interact and build brand affinity. Loyalty Insurance aims at using the digital reward platform to reward and incentivize insurers and intermediaries such as brokers and agents anytime they place Motor Insurance with the company.

🚩Indigenous Insurance firm, Star Assurance has partnered with oil marketing firm, Total Ghana to deepen insurance penetration in Ghana. This collaboration between the two firms is aimed at selling motor insurance and related products to commercial drivers especially members of the Total Troxi Club. To facilitate this process, Star Assurance will set up point of sales at various at various Total Service stations in addition to its existing branches to serve the Troxi Club members and other Total card bearers. Speaking at the launch, Executive Director of Star Assurance, Boatemaa Baffour-Awuah said the initiative is to bring insurance closer to drivers. “We believe the coming together of Star Assurance and Total Petroleum Ghana will bring far reaching added value to our cherished customers and patrons thereby enriching their lives” she added. Also, Sales and Marketing Manager of Total Ghana, Laurent Gouy expressed joy at the initiative which will make acquiring insurance very easy for commercial drivers.

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✴INTERBANK FOREX RATES 💴💰 

US$GH¢ Buy 5.6768 Sell 5.6824

GB£GH¢ Buy 7.4269 Sell 7.4349

AUD$GH¢ Buy 4.0640 Sell 4.0691

CAD$GH¢ Buy 4.2683 Sell 4.2722

JP¥GH¢ Buy 0.0533 Sell 0.0534

ZARGH¢ Buy 0.3236 Sell 0.3238

EU€GH¢ Buy 6.6783 Sell 6.6843

CHN¥GH¢ Buy 0.8173 Sell 0.8180

GH¢CFA Buy 98.1340 Sell 98.2222

GH¢NG₦ Buy 67.7865 Sell 67.7865

    

CRYPTOCURRENCY MARKET      

Bitcoin $11,328.11 🔻-4.31%

Ethereum $374.45 🔻-5.21%

Ripple $0.280532 🔻-4.63%

Bitcoin Cash $279.38 🔻-7.41%

Chainlink $12.85 🔻-3.27%

Bitcoin SV $206.48 🔻-8.32%

Litecoin $53.89 🔻-7.30%

Cardano $0.134981 🔻-5.87%

Binance Coin $21.08 🔻-6.30%

EOS $2.98 🔻-7.80%

Stellar $0.100194 🔻-4.90%

💵Bloomberg USDGHS Cross Rate - *5.7621*

🔼GSE DAILY GAINERS➖%CHANGE➖PRICE 

No gainers for today

🔻GSE DAILY LOSERS➖%CHANGE➖PRICE

UNIL -9.94% ➡Gh¢12.59

FML -9.09% ➡Gh¢1.50

〽Inflation rate in Ghana  ➡  11.20% (-0.88%)

🏦Ghana Reference Rate ➡ 14.75% (-0.34%)

✳Policy Rate in Ghana ➡ 14.50% (-9.38%)

¶ TREASURY BILLS RATE💸 

91 - Day Discount Rate 13.5141% Interest Rate 13.9866%

182 - Day Discount Rate 13.1522% Interest Rate 14.0780%

364 - Day Discount Rate 14.4885% Interest Rate 16.9433%

1 Year Fixed Note Interest Rate 16.5672%

2 Year Fixed Note Interest Rate 18.7500%

3 Year Bond Interest Rate 19.5000%

5 Year Bond Interest Rate 19.2500%

6 Year Bond Interest Rate 19.5000%

10 Year Bond Interest Rate 19.8000%

20 Year Fixed Rate Bond 20.2000%

🐂GHANA GOV'T EUROBOND RATES 🏦

7 Year Bond Coupon Rate 7.8750%

12 Year Bond Coupon Rate 8.1250%

31 Year Bond Coupon Rate 8.9500%

🛢Average Petrol & Diesel Price Per Litre - Gh¢4.82 (🔻-0.30%)

 GSE 2020 GAINERS ➖ YTD% ➖ PRICE 

SIC +25.00% ➡Gh¢0.10

CMLT +22.22% ➡Gh¢0.11

ALW +10.00% ➡Gh¢0.11

DASPHARMA +2.56% ➡Gh¢0.40

🔻GSE 2020 LOSERS ➖ YTD% ➖ PRICE

FML -63.59% ➡Gh¢1.50

CAL -32.58% ➡Gh¢0.60

GGBL -28.99% ➡Gh¢1.20

RBGH -28.57% ➡Gh¢0.40

GCB -25.49% ➡Gh¢3.80

🏧 MARKET INDEXES 

*Dow Jones Index🚂⛽ 27,791.44 +357.96

+1.30%

*S&P 500 🏦 3,333.69 -26.78

-0.80%

*Nasdaq Index📲💻  10,782.82 -185.53

-1.69%

* NYSE Composite Index 12,849.37 +5.35

+0.04%

*London FTSE 100 6,154.34 +103.75

+1.71%

*Germany DAX 12,946.89 +259.36

+2.04%

*Japan NIKKEI 225 22,750.24 +420.30

+1.88%

*Hong Kong HANG SENG  24,890.68 +513.25

+2.11%

*Shanghai Shenzhen 300 4,681.79 -43.08

-0.91%

*S&P/ASX 200 Index 6,138.65 +28.45

+0.47%

*Bloomsberg EU 500 245.20 +4.15

+1.72%

*MOEX Russia Index 3,005.63 +44.85

+1.51%

*FTSE/JSE South Africa Top40 52,831.61 +395.96

+0.76%

*Nairobi SE 20 Share 1,733.14 -28.29

-1.61%

*Nigeria SE Main-Board Index 24,883.70 -143.91

-0.57%

*GSE Composite Index 1873.39 

-10.06 (-0.53%)

*GSE Financial Index 1719.64 

0.00 (0.00%)

GSE INDEXES ⏸ 2020 YTD RETURNS% 

*GSE Composite Index 1,873.39 🔻-17.00%

*GSE Financial Index 1,719.64 🔻-14.85%

💧MUTUAL FUNDS IN GHANA♣

📈EQUITY FUNDS ➰YTD%

Anidaso Fund 🔻-3.89%

EPAcK 🔻-16.91%

NTHC Horizon 🔻-0.25%

SAS Fortune 🔻-6.96%

Republic Equity 🔻-1.36%

⚖BALANCED FUNDS ⏸YTD%

Bfund 🔼+0.12%

CCMF 🔼+9.93%

CM Fund 🔼+8.74%

Dalex Vision 🔼+8.17%

EDC Balanced 🔻-4.42%

EdiFund T2 🔼+3.87%

Fidelity Balanced Trust 🔼+3.69%

Kiddifund 🔼+0.30%

Plus Balanced Fund 🔼+7.79%

UMB Balanced 🔼+5.31%

⚙FIXED INCOME FUNDS 🛡YTD%

EDC Fixed Income 🔼+9.35%

Fidelity Fixed Income Trust 🔼+10.29%

Fixed Income Alpha Plus 🔼+13.34%

NIMED Fixed Income Fund Tier 1 🔼+2.37%

SEM Income 🔼+9.72%

STANLIB Income 🔼+10.71%

🏦MONEY MARKET FUNDS ⏱YTD%

EdiFund T1 🔼+9.04%

Mfund 🔼+9.93%

NGIS Mfund 🔼+9.04%

Republic Unit 🔼+6.30%

SEM MoneyPlus 🔼+8.38%

STANLIB Cash 🔼+10.33%

✴ COMMODITIES MARKET 

*Brent Crude $/barrel⛽ $41.61 -0.33

-0.79%

*Natural Gas 🏭 $/million BTUS $2.15 0.00

-0.05%

*Gold 👑 $/troy ounce $1,921.80 -117.90

-5.78%

*Silver 💍 $/troy ounce $24.86 -4.40

-15.04%

*Corn 🌽 $/bushel $323.75 +0.75

+0.23%

*Cocoa 🍫 $/metric ton $2,448.00 -40.00

-1.61%

*Coffee ☕ ¢/pound  $113.60 -1.70

-1.47%

*Sugar🎂 ¢/pound $12.74 +0.19

+1.51%

Sources: Bank of Ghana, Bloomberg, GSE, Reuters, Citifm, Myjoyonline, Ghanaweb, Doobia, BBC, Graphic Business, B&FT, StarFmonline.

Compiled By:

Prince Henry Danquah

Bora Capital Advisors Ltd.

+233(0)50-002-3155

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