BUSINESS NEWS | GHANA AND BEYOND 🌍 13/08/2020

 

🚩The national year-on-year inflation rate was 11.4% in July 2020, which is 0.2 percentage points higher than last month the Ghana Statistical Service (GSS) has announced. Month-on-month inflation between June 2020 and July 2020 was 0.5%. This is lower than the 1.0% recorded between May and June, the 1.7% recorded between April and May and 3.2% between March and April 2020. The average month-on-month inflation recorded in October 2019 to March 2020 was 0.7%. Only two of the thirteen Divisions had higher than average inflation rates; Housing, Water, Electricity and Gas (20.3%) and Food and Non-Alcoholic Beverages (13.7%). At the regional level, the overall year-on-year inflation ranged from 4.2% in the Volta Region to 16.2% in Greater Accra. 

🚩A recent competitor analysis indicates that Ghana earned US$1.8 million from the export of Rock Lobsters in 2019 as China absorbed 99 percent of the product from Ghana whereas the remaining went to Hong Kong market. China’s global imports of rock lobsters grew annually by 34 percent between 2015 and 2019, however, Ghana recorded a decline in both quantity and value between 2015 and 2020. Analysts of the report insist that the country needs to assess its strategy in the Chinese market given the decline in both quantity and value in the last five years. In effect, the Chinese market imported about US$942 million of the product in 2019 and it is ranked number one in the world amongst the importers of rock lobsters globally as key suppliers to the Chinese market being Australia (55 percent), New Zealand (21 percent) and Mexico (10.6 percent).

🚩Credit to the private sector declined by GH¢1.24 billion in May 2020, according to the latest Bank of Ghana (BoG) Statistical Bulletin. This occurred during the peak of the coronavirus pandemic in the wake of government’s partially lockdown of the economy’s two biggest hubs for three weeks. According to the data, banks and other financial institutions loaned GH¢17.09 billion, GH¢15.59 billion and GH¢14.35 billion to consumers in March, April and May 2020 respectively. But the consecutive monthly drop in credit from March to May 2020 is largely attributed to banks tough stance on credit, amid the coroanvirus pandemic. Instructively, most of the banks in Ghana began revising downwards their budget for loans and advances to consumers immediately COVID-19 started creating global uncertainty, according to some credit analysts.

🚩Parliament has approved a loan agreement to enable the Ghana Cocoa Board (COCOBOD) purchase cocoa beans in the 2020/2021 cocoa season. Presenting to parliament the details of the loan facility, the Chairman of the finance committee, Dr Mark Asibbey-Yeboah, requested the house to adopt his committee's report on the terms of a receivables-backed trade finance facility between Ghana Cocoa Board and a Consortium of bank and financial institutions with the government of Ghana as guarantor for an amount of up to US$1.3 billion to finance the purchase of cocoa for the 2020/2021 crop season. Seconding the motion moved by Dr Assibey-Yeboah, the Minority MP for Adaklu, Kwame Governs Agbodza, expressed worry as to why a report which was supposed to be presented by COCOBOD on the suspension and audit of the cocoa roads in 2017, was not ready.

🚩Ghana’s Non-Traditional Exports (NTEs) earnings increased from $2.813 billion in 2018 to $2.899 billion, representing an increase of 3.10 per cent. This came up during the 2019 NTE statistics launch by the Ghana Export Promotion Authority in Kumasi. NTEs continue to contribute only about 18 per cent of the national export which is mainly of natural raw materials. National export grew by 8.53 per cent over 2018 compared to a slower rate in NTE for the same period According to the report, the top 10 products contributed about $1.66bn that is 57 percent of the revenue. These include, cocoa butter, cashew nuts, cocoa cake, cocoa paste and articles of plastic. Canned tuna, palm oil, iron and steel products, cocoa powder and aluminum products form the rest.

🚩Government of Ghana yesterday started the process for the issuance of seven-year treasury bonds with the opening of the book-build. This follows the release of an initial pricing guidance for the bond issuance through the Ghana Stock Exchange, yesterday. According to an announcement made by the Bank of Ghana on Friday, August 7, 2020, the Bonds will mature in 2027. Per the government’s debt issuance calendar for June to August 2020, an amount of GHc 1,000 million in seven year bonds is expected to be issued this month. Of the GH¢17.84 billion domestic debt securities to be issued during the three month period, GH¢5.99 billion is planned for the month of August.

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The 2nd InvestinGh webinar comes off on 15th August, 2020 @ 17:00GMT. Mr. Akwasi Adu-Boahene, Head of Fidelity Securities Ltd., will speak on the topic *"How to choose a Mutual Fund"*. Visit *www.investingh.info* to register for free.

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The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child's fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv

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✴INTERBANK FOREX RATES 💴💰 

US$GH¢ Buy 5.6778 Sell 5.6834

GB£GH¢ Buy 7.4078 Sell 7.4158

AUD$GH¢ Buy 4.0698 Sell 4.0750

CAD$GH¢ Buy 4.2889 Sell 4.2930

JP¥GH¢ Buy 0.0531 Sell 0.0531

ZARGH¢ Buy 0.3270 Sell 0.3271

EU€GH¢ Buy 6.6972 Sell 6.7038

CHN¥GH¢ Buy 0.8186 Sell 0.8192

GH¢CFA Buy 97.8485 Sell 97.9450

GH¢NG₦ Buy 66.8943 Sell 67.2464

    

CRYPTOCURRENCY MARKET      

Bitcoin $$11,558.12 🔼2.04%

Ethereum $396.99 🔼6.50%

Ripple $0.284990 🔼2.83%

Bitcoin Cash $396.99 🔼1.04%

Chainlink $16.65 🔼28.58%

Bitcoin SV $208.68 🔼2.65%

Litecoin $55.11 🔼3.45%

Cardano $0.140263 🔼8.37%

Binance Coin $21.66 🔼4.15%

EOS $3.08 🔼4.06%

Stellar $0.101807 🔼3.63%

💵Bloomberg USDGHS Cross Rate - *5.7613* (YTD - ⬆️ +0.88%)

🔼GSE DAILY GAINERS➖%CHANGE➖PRICE 

CAL +8.33% ➡Gh¢0.65

🔻GSE DAILY LOSERS➖%CHANGE➖PRICE

No losers for today

〽Inflation rate in Ghana  ➡  11.40% (+1.79%)

🏦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¢4.85 (🔼+4.30%)

 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

GGBL -28.99% ➡Gh¢1.20

RBGH -28.57% ➡Gh¢0.40

CAL -26.97% ➡Gh¢0.65

GCB -25.49% ➡Gh¢3.80

🏧 MARKET INDEXES 

*Dow Jones Index🚂⛽ 27,976.84 +289.93 +1.05%

*S&P 500 🏦 3,380.35 +46.66 +1.40%

*Nasdaq Index📲💻  11,012.24 +229.42 +2.13%

* NYSE Composite Index 12,974.82 +125.45 +0.98%

*London FTSE 100 6,280.12 +125.78 +2.04%

*Germany DAX 13,058.63 +111.74 +0.86%

*Japan NIKKEI 225 22,843.96 +93.72 +0.41%

*Hong Kong HANG SENG  25,244.02 +353.34 +1.42%

*Shanghai Shenzhen 300 4,647.64 -34.14 -0.73%

*S&P/ASX 200 Index 6,132.05 -6.60 -0.11%

*Bloomsberg EU 500 247.97 +2.77 +1.13%

*MOEX Russia Index 3,053.99 +48.36 +1.61%

*FTSE/JSE South Africa Top40 53,126.54 +294.93 +0.56%

*Nairobi SE 20 Share 1,751.39 +18.25 +1.05%

*Nigeria SE Main-Board Index 25,141.48 +257.78 +1.04%

*GSE Composite Index 1876.41 3.02 (+0.16%)

*GSE Financial Index 1725.21 5.57 (+0.32%)

GSE INDEXES ⏸ 2020 YTD RETURNS% 

*GSE Composite Index 1,876.41 🔻-16.87%

*GSE Financial Index 1,725.21 🔻-14.58%

💧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⛽ $45.43 +0.93 +2.09%

*Natural Gas 🏭 $/million BTUS $2.15 +0.00 +0.09%

*Gold 👑 $/troy ounce $1,929.80 -19.20 -0.99%

*Silver 💍 $/troy ounce $25.76 -0.22 -0.84%

*Corn 🌽 $/bushel $327.25 +3.75 +1.16%

*Cocoa 🍫 $/metric ton $2,465.00 +17.00 +0.69%

*Coffee ☕ ¢/pound  $114.25 +0.65 +0.57%

*Sugar🎂 ¢/pound $12.84 +0.10 +0.78%

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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