Market Review February 2017 The month of February was dominated by a highly volatile foreign Market in Brief exchange market resulting from news of a worse-than-expected • • • • • • 2016 budget deficit. The deficit stood at 10.3 per cent of gross domestic product against a target of 5.3 per cent. Policy Rate 25.5% Forex and Money Markets • • • The Ghana cedi recorded a month-on-month depreciation of 4.6 Inflation per cent against the US dollar in the Interbank market, having 13.3% opened the month at 4.2711 per US dollar and closed at 4.4786, (January Y/Y) extending the year’s depreciation to 6.2 per cent. In the money • • • market, yield on 91-day bill remained at 15.94 per cent at close of the month whereas yield on 182-day bill rose marginally to 17.10 Interest Rate per cent from 16.99 per cent in January. 16.3827% (91-day bill) Interbank Exchange Rate (February 2017) • • • Current Previous Change (%) USD/GHS 4.4786 4.2711 -4.60% GBP/GHS 5.5745 5.3488 -4.00% Cedi Performance EUR/GHS 4.7530 4.6073 -3.10% -6.2% Ghana Government Treasury Securities (YTD Return) Current Previous Change (bps) 91-Day T-Bill 15.9438% 15.9376% +1bps GSE Composite Index 182-Day T-Bill 16.9927% 17.0978% -11bps +9.8% (YTD Return) Equities • • • The stock market remained optimistic in February. The benchmark GSE Composite Index gained 78.13 points (representing 4.4 per cent) month-on-month to close February at 1,854.53 points, www.pentassets.com 050-153-0246 extending year-to-date return to 9.8 per cent. Overall, the market GSE Composite Index Statistics Current Previous Change (%) Level 1,854.53 1,776.40 4.4% News in Brief Market Cap (GH¢ m) 49,060.25 54,048.70 -9.2% • • • • • • YTD Return 9.8% 5.2% No. of Gainers 13 11 Sovereign Bank offers No. of Losers 4 4 highest interest rate on deposits, according to recorded 13 gainers and 4 losers during the month. Cocoa the Bank of Ghana’s Processing Company, UT Bank Limited and Ghana Commercial latest Annual Percentage Bank Limited were the top winners with 50 per cent, 33.3 per cent Rates (APR) and Average Interest (AI) report. The and 22.6 per cent month-on-month appreciations, respectively. bank’s rate on deposit Tullow Oil Plc (Ghana), Ecobank Transnational Incorporated and stood at 19.5 percent, HFC Bank Limited were the worst performers with 20.9 per cent, about 7.6 percentage 14.3 per cent and 5.6 per cent month-on-month losses, points above the industry respectively. average of 11.9 percent as at end of January 2017. Capital Bank follows with Top Gainers 18.7 percent. On the Price Gains Change (%) other hand, Standard Cocoa Processing Comp. 0.03 0.01 50% Chartered Bank was UT Bank Ltd. 0.04 0.01 33.3% named as the bank with GCB Bank Ltd. 4.88 0.90 22.6% the lowest interest on Top Losers customer deposits, Price Loss Change (%) offering 4.3 per cent per Tullow Oil Plc. 21.25 -5.63 -20.94% annum. Ecobank Transnational Inc. 0.12 -0.02 -14.29% • • • HFC Bank Ltd. 0.68 -0.04 -5.56% Annual consumer price YTD Equity Performance inflation fell to 13.3 percent in January from 15.4 percent the previous Year-to-date (YTD) market index performance stood at 9.8 per month, according to a cent at close of February, with 14 winners and 5 losers. Top release from the Ghana winners were Cocoa Processing Company, Ghana Commercial Statistical Service on Bank Limited and UT Bank Limited with 50 per cent, 37.1 per cent February 15. and 33.3 per cent YTD appreciations, respectively. Top losers were Tullow Oil Plc (Ghana), Ayrton Drugs Manufacturing Limited and HFC Bank Limited with 20.1 per cent, 16.7 per cent, and 9.3 per www.pentassets.com 050-153-0246 cent losses, respectively. GSE Top Gainers (Year-to-date) Price Gains Change (%) Upcoming Cocoa Processing Comp. 0.03 0.01 50% • • • • • • GCB Bank Ltd. 4.88 1.32 37.1% UT Bank Ltd. 0.04 0.01 33.3% GSE Top Losers (Year-to-date) Bank of Ghana’s Price Loss Change (%) Monetary Policy Committee (MPC) Tullow Oil Plc. 21.25 -5.63 -20.94% Meeting -March 24, 2017 Ayrton Drug Mfg Ltd. 0.10 -0.02 -16.67% HFC Bank Ltd. 0.68 -0.07 -9.33% Sources: Bank of Ghana, Ghana Stock Exchange and Ghana Statistical Service. Disclaimer: 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 having regard to their objectives, financial situation, or needs, and should seek independent advice on the suitability or otherwise of a particular investment. Pent Asset and Wealth Management: Pent Assets aim at bringing people, capital and ideas together to give the best of financial services to our clients and our communities. We are licensed by Ghana’s Securities and Exchange Commission as an Investment Advisor & Fund Manager. www.pentassets.com 050-153-0246 .