Download MARKET SUMMARY REPORT 30th April 2015

MARKET SUMMARY REPORT
30th April 2015
TABLE OF CONTENT
Economy Highlight
 Ghana’s economy grew by 4 percent in 2014
 Africa records growth in macroeconomic performance
Top Business
 Government finances $80m electrification project
 Economist warns Ghana against rushing to adopt Islamic
Banking
Foreign Bids
 Brent crude prices slip away from five-month highs as Japan's
industry stutters
 Europe’s Debt Selloff Erases $61 Billion in Value in One Day
Market Information
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Treasury Bill Rate
Bank of Ghana Indicative rate
GSE Summary
Commodity News
Investment Fund Rates
Economy Highlight
Ghana’s economy grew by 4 percent in 2014
Source: Myjoyonline
Ghana‟s economy grew by four percent for last year. That‟s according to the final GDP
estimates released by the Ghana Statistical Service. The 4 percent is the final growth for 2014
after it projected a 4.2 percent growth when it gathered about 70 percent of data for
calculating the GDP estimates. According to the Government Statistician, Dr. Philomena
Nyarko, the reduction was influenced by declining import. “The indications are that there
were lower imports volumes in 2014 than earlier estimated. Marine fishing output also
declined considerably," Dr. Nyarko said.
The services sector had highest share of the annual GDP with 49. 6 percent, followed by
industry with 28.4 percent, and agriculture with the least share of 22 .0 percent. However, in
terms of growth, services had a 5.7 percent growth, agriculture 4.6 percent, and industry, 0.9
percent. For quarter on quarter bases, the economy grew by 1.2 percent just for the fourth
quarter of last year. This however, represents a marginal reduction of 2.6 percent recorded in
the third quarter of 2014. The Ghana Statistical Service said the country is now worth 113
billion Ghana cedis. However the country‟s per capita GDP is now 4,165 Ghana cedis.
Africa records growth in macroeconomic performance
Source: Ghana Web
Ms. Antoinette Sayeh, Director of the International Monetary Fund (IMF) African Department,
says sub-Sahara Africa has experienced rapid growth and better macro-economic
performance. She said sub-Sahara Africa‟s Gross Domestic Product per capita growth
accelerated toward the end of the 1990s to average 4.3 per cent per year over the 2000s,
compared with 2.9 per cent a decade earlier. Ms. Sayeh attributed the growth to increased
political stability, better micro-economic management and access to financing, as well an
improved business climate, supported investment efforts, which has improved the capacity in
the region. Speaking at the launch of IMF Africa Regional Outlook on Tuesday in Accra, Ms.
Sayeh said increased trade integration also played a role not only via higher demand for
exported goods, but by fostering competition and enabling some transfer of technology and
efficiency gains from imported goods.
Highlighting on the outlook, she said the current global environment and the risks of global
financial volatility would be more challenging than in the recent past and the environment
provided an opportunity to refocus policies on economic diversification and fostering
structural transformation. Ms. Sayeh noted that despite the strong growth in trade flows, SubSahara Africa still trades below its potential, both in terms of total flows and of positioning in
global value chains. She said some countries have started to leverage their comparative
advantage either in agriculture and agro-business or in some cases in manufacturing. She
said addressing the barrier to trade, could therefore unlock untapped productivity gains,
bringing with it more jobs, higher income levels, more diversified economies and more
sustainable growth. Ms. Sayeh said supporting the development of regional trade flows
would better shelter the region from exogenous external shocks stressing that insufficient
infrastructure comes out as one of the most important impediments to trade flows.
Top Business
Government finances $80m electrification project
Source: Ghana Web
The Tain District in the Brong-Ahafo Region is benefiting from Peri-Urban Rural Electrification
Project funded by the Government through the Energy Ministry. The estimated USD $80 Million
project is being executed by Ibbeco Company Limited, an Accra-based Ghanaian
electrical engineering firm, with Tech-Consult, also an electrical engineering consulting firm in
Accra as the project consultants. Mr. Gyan-Tutu, the Member of Parliament (MP) for Tain,
who initiated the project, explained to the Media on Tuesday at Nsawkaw in the BrongAhafo Region that, the project had become necessary because most of the big towns in the
district had expanded and therefore needed additional supply of electricity.
He said work had commenced on the project, mentioning that some of the beneficiary
communities were Nsawkaw, Seikwa, Badu, Menji, Brohani and Kwame Tenten. Mr. GyanTutu added that, the project covered 28 communities, saying the first- phase of it, comprising
14 communities included the seven-listed above. In a related development, another Rural
Electrification Project being executed by China Water, a Ghanaian-based Chinese electrical
engineering company for 20 towns and villages in the District had already started a week
earlier. Mr. Gyan-Tutu, who did not indicate the cost of that project, cited some of the
beneficiary towns as Koguaa, Konkonte, Dagadu, Agyanwiam, Kojowologo, Kwame
Mensakrom, Adamu, Akore and Adadease.
Economist warns Ghana against rushing to adopt Islamic Banking
Source: Citifmonline
Economist and the Head of the Finance Department at the University of Ghana Business
School, Dr. Godfred Bokpin has advised the Bank of Ghana not to rush in okaying Islamic
Banking in Ghana. He adds that authorities must engage in broad based discussions with
relevant stakeholders to see the feasibility of adopting such a banking system in Ghana. ”In
principle, there is no interest of „Riba‟ in Islamic Banking but there is no capital that is free in
this world so we have to look at the mode of compensation that they derive by trading off
consumption so that people get the understanding that they are not getting interest but they
go more in terms of profit sharing or partnership arrangements which may involve trading of
ownership for the level of investment that they are bringing in” explained Dr Bokpin.
Adoption of Islamic Banking in non-Islamic states came up strongly for discussion at the just
ended IMF Spring meetings in Washington where industry players were divided on its
implications for economies. Unlike conventional banking, Islamic banking operates in line
with the principles of the Shari‟ah law which prohibits the payment or acceptance of interest
charges for the lending and accepting of money. This means that all loans contracted from
such banks are interest free. But Dr Bokpin is of the view that there must be a thorough
discussion on Islamic banking owing to the challenges with access to credit in Ghana. He is
of the view that ”the discussions must be broad within a proper context so that we all have
an understanding of Islamic banking so that when we are adopting it, we will know what
exactly we are adopting.”
Foreign Bids
Brent crude prices slip away from five-month highs as Japan's
industry stutters
Source: Reuters
Oil prices slipped away from five-month highs in early Asian trading on Thursday as Japanese
factory output weakened for the second straight month. Japanese industrial output fell 0.3
percent in March adding to mounting evidence of an export-driven economy struggling to
regain momentum amid slowing global growth. Brent crude futures dropped to a low of
$65.37 a barrel before recovering to $65.76 a barrel by 0715, down 8 cents from their last
settlement. WTI crude, however, was up 22 cents at $58.81 a barrel on bullish U.S. stocks data.
The drops followed a session in which prices hit five-month highs after the first crude stock
draw in almost half a year at the U.S. Cushing hub.
"Brent and WTI prices closed at the highest level in nearly five months as U.S. crude oil
inventories rose by just 1.9 million barrels (compared to more than 5.5 million barrels the
previous week)," ANZ bank said on Thursday. "WTI prices outperformed Brent as crude oil
stocks at key U.S storage hub Cushing fell for the first time in five months," it added. Analysts
also said prices would unlikely chase new highs before fundamentals in the market change.
Singapore-based brokerage Phillip Futures said it expected "more range-bound movements
moving forward because fundamentals have remained unchanged." Despite prices
hovering close to half-year highs, analysts warned against investment into certain oil sectors,
even if prices continued to rise.
Europe’s Debt Selloff Erases $61 Billion in Value in One Day
Source: Bloomberg
Investors revolting against negative yields in Europe wiped 55 billion euros ($61 billion) off the
value of the region‟s government bonds in one day. The value of European debt dropped to
5.844 trillion euros on Wednesday, the lowest level since March 30, in Bank of America Merrill
Lynch‟s Euro Government Index. Signs of inflation in the 19-nation economy choked off
demand at a German government-debt auction as investors contended with a flood of
supply from simultaneous sales by Italy and Portugal. The European Central Bank‟s 1.1 trillioneuro quantitative-easing program gives cause to avoid the region‟s government bonds, said
Steven Wieting, global chief investment strategist in New York at Citigroup Inc.‟s private
bank.
Wieting said on April 29 the bank cut allocation to German bunds in favor of U.S. Treasuries in
the five- to seven-year range. “There is no reason to accept negative yields for the same
reasons that institutional investors might,” said Wieting, whose funds hold a smaller amount of
bunds than indexes recommend. Since his bank advises some of the world‟s most affluent
families, with assets that total $374 billion, Wieting isn‟t required to hold easy-to-trade
sovereign debt. “Private-wealth clients don‟t need to follow that particular herd.” Germany
got bids of 3.649 billion euros at the five-year note auction, short of its 4 billion-euro sales goal.
Adding to the supply pressure, Italy auctioned 8.25 billion euros of debt on Wednesday, while
Portugal sold 2.5 billion euros of 10- and 30-year bonds via banks.
Market Information
Treasury Bill Rate
Monday 27th April, 2015 to Friday 01st May, 2015
Period
Previous Rates
Discount Rates
Interest Rates
Weekly Change in
Rate
91 - Day
25.2039%
23.6337%
25.1178%
0.0861%
182 - Day
25.9074%
22.8605%
25.8107%
0.0967%
1 – Yr. Note
22.5000%
-%
22.5000%
-%
2 – Yr. Fixed Rate Note
23.0000%
-%
23.0000%
-%
Source: Bank of Ghana
Bank of Ghana Indicative Rate
Thursday 30th April, 2015
Currency
Pairs Code
Buying
Selling
U.S Dollar
USDGHS
3.8474
3.8512
Pound Sterling
GBPGHS
5.9450
5.9516
Swiss Franc
CHFGHS
4.1023
4.1054
Australian Dollar
AUDGHS
3.0985
3.1050
Canadian Dollar
CADGHS
3.2149
3.2173
Danish Kroner
DKKGHS
0.5750
0.5753
Japanese Yen
JPYGHS
0.0324
0.0324
New Zealand Dollar
NZDGHS
2.9731
2.9776
Norwegian Kroner
NOKGHS
0.5136
0.5138
Swedish Kroner
SEKGHS
0.4624
0.4627
S/African Rand
ZARGHS
0.3265
0.3267
Euro
EURGHS
4.2896
4.2938
Chinese Reminbi
CNYGHS
0.6207
0.6212
BCEAO
GHSXOF
152.77
152.92
Dalasi
GHSGMD
11.19
11.20
Ouguiya
GHSMRO
80.45
80.53
Naira
GHSNGN
51.65
51.70
Leone
GHSSLL
1133.11
1134.23
WAUA
WAUGHS
0.1006
0.1006
Source: Bank of Ghana
GSE Summary
GSE STOCK INDICES
GSE-CI
GSE-FSI
Previous 28/4/2015
2,263.79
2,286.65
Current 29/4/2015
2,268.53
2,291.76
4.74
5.1
0.33%
2.14%
CYTD
01/01/15 -29/4/2015
Source: Ghana Stock Exchange
The GSE-Composite Index (GSE –CI), the benchmark measure of performance of the Ghana
Stock Exchange gained 4.74 points from 2,263.79 to close at 2,268.53, representing a
year-to-date gain of 0.33%.
The GSE-Financial Stocks (GSE-FSI), which tracks the performance of listed financial stocks,
also gained 5.1 points from 2,286.65 to close at 2,291.76 representing a year-to-date gain
of 2.14%.
COMMODITY FUTURES
Commodity
Price
% Change
$65.79
-0.08%
$1,202.67
-0.17%
$368.75
+0.27%
SUGAR /MT
$374.90
-1.60%
COCOA /MT
$2,941.00
+0.58%
CRUDE OIL (BRENT)
GOLD T/OZ
CORN /BU
Source: Bloomberg
Investment Funds
Unit Trust and Mutual Funds
Liberty Freedom Fund
as at 29/04/15
Offer
GHC 0.221
Bid
GHC 0.2188
Year to Date
2.68%
SAS Fortune Fund
as at 28/04/15
Price
GHC 0.5099
Price Change
GHC 0.0005
Year To Date
-0.02%
HFC Equity Fund
as at 28/04/15
Price
GHC 0.4524
Price Change
GHC 0.0011
Year To Date
4.92%
HFC Unit Trust
as at 28/04/15
Offer
GHC 0.2886
Bid
GHC 0.2915
Year To Date
7.66%
HFC REIT
as at 28/04/15
Offer
GHC 2.0185
Bid
GHC 2.0378
Year To Date
5.11%
M-Fund
as at 28/04/15
Bid Price
GHC 0.6180
Offer Price
GHC 0.6242
Year To Date
8.21%
BFund
as at 28/04/15
Bid Price
GHC 0.3678
Offer Price
GHC 0.3715
Year To Date
-1.54%
Source: Business Ghana
Excellence quote
Desire is the key to motivation, but it's the determination and
commitment to unrelenting pursuit of your goal - a commitment to
excellence - that will enable you to attain the success you seek.
Mario Andretti
Thank you.