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Market Review Market Review January 2017 Forex and Money Markets Market in Brief • • • • • • The economy continued to show signs of recovery during the month of January. Prices of government securities generally increased with Policy Rate yield on weekly 91-day bill easing to 15.94%, from 16.43% in 25.5% December. (Prices increase when yields fall). This development was • • • supported by the gradual decline of consumer inflation from a peak of 19.2% in March 2016 to a 29-month low of 15.4% in December. Inflation The cedi depreciated by about 1.7% in January to close at 4.2711 per 15.4% US Dollar in the interbank market. (December 2016, Y/Y) • • • Interbank Exchange Rate (January 2017) Current Previous Change (%) Interest Rate USD/GHS 4.2711 4.2002 -1.7% 15.94% p.a. GBP/GHS 5.3488 5.1964 -2.8% (91-day bill) EUR/GHS 4.6073 4.4367 -3.7% • • • Ghana Government Treasury Securities Current Previous Change(bps) Cedi Performance 91-Day T-Bill 15.94% 16.43% -49bps -1.7% (USDGHS YTD Return) 182-Day T-Bill 17.10% 17.64% -54bps • • • 1-Yr Note 19.50% 21.00% -150bps GSE Composite Index Equities +5.2% (YTD Return) The stock market was optimistic in the first month of 2017. The GSE Composite Index (GSE:CI) gained 5.2% to close [the month] at • • • 1,776.40 points, powered by the financial services sector. Market capitalization rose 2.6% to 54.05 billion cedis. Overall, the market recorded 11 gainers and 4 losers during the month. Ecobank Transnational Incorporated was the lead gainer with 40% month-on- month appreciation, followed by SIC Insurance Company with 25%, www.pentassets.com 050-153-0246 GSE Composite Index Statistics Current Previous Change (%) Level (GH¢) 1,776.40 1,689.09 5.2% Market Cap (GH¢ m) 54,048.70 52,690.99 2.6% YTD Return 5.2% News in Brief • • • • • • No. of Gainers 11 No. of Losers 4 The Monetary Policy Committee of the Bank of Societe Generale Ghana with 14.5% and GCB Bank with 11.8%. Ayrton Ghana maintained its Drugs Manufacturing Limited was the worst decliner with month- policy rate at 25.5% on-month loss of 16.7%, followed by PZ Cussons Ghana with 9.1%, during its review on Guinness Ghana Breweries with 7.4% and HFC Bank with 4.0%. January 23. The Committee viewed Top Gainers the declining trends Price Gains Change (%) observed in headline Ecobank Transnational Inc. 0.14 0.04 40.0% inflation, core inflation SIC Insurance Company Ltd 0.15 0.03 25.0% and inflation expectations Societe Generale (Gh) Ltd 0.71 0.09 14.5% as positive. However, the Top Losers Committee’s decision was Price Loss Change (%) influenced by concerns Ayrton Drugs Mfg Ltd. 0.10 0.02 -16.7% regarding inflation PZ Cussons Ghana Ltd 0.20 0.02 -9.1% outlook, which could be Guinness Ghana Breweries 1.51 0.12 -7.4% impacted by the pass- through effects of the recent exchange rate Sources: Bank of Ghana, Ghana Stock Exchange and Ghana Statistical Service. volatility, persistent increases in food inflation Disclaimer: and the fiscal outturn. This report is for general information purposes only and is not • • • intended as a recommendation or an offer or solicitation for the purchase or sale of any security. Any person considering an investment should consider the appropriateness of the investment Annual consumer price having regard to their objectives, financial situation, or needs, and inflation fell marginally to should seek independent advice on the suitability or otherwise of a 15.4 percent in December particular investment. 2016 from 15.5 percent the previous month, according to a release from the Ghana Statistical Service on January 11. www.pentassets.com 050-153-0246 .
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