• Losses in GGBL, MTNGH and CAL resulted in declines on the two major indices, with the GSE-CI closing at 1,806.94 points and the GSE-FSI ending the week at 1,622.81 points.
• Last week’s treasury auction closed with a success rate of 95.80%, with issuances across all Treasury Bill tenors as well as a 3-Year Bond issuance.

ECONOMIC SCOOP

Bank of Ghana (BoG) maintains policy rate at 14.50%    

• On account of a steady recovery in economic activity and easing in inflationary pressures in Q3 2020 the BoG has maintained the policy rate at 14.50% p.a.
• The BoG Composite Index of Economic Activity (CIEA) which witnessed contraction during Q2 2020 recorded a rebound in Q3 2020, closing the quarter with 10.50% y/y rise in September.
• However, Government continues to face limited fiscal space for the next couple of quarters as debt-to-GDP ratio reached 71% in October 2020.

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• There was little shift on the local bourse as the GSE-CI moved up by 0.01% while the GSE-FSI was unchanged during the week, following an uptick of 0.93% in FML.
• At last week's auction Government missed its target by 21.45%, raising GHS 773.71m from 91 and 182-Day Bills.

ECONOMIC SCOOP

Bank of Ghana to update the market on its decisions from the MPC meeting today.

• The Monetary Policy Committee (MPC) of the Bank of Ghana is expected to announce the outcome of its 97^th meeting held last week to review developments in the Ghanaian economy today.
• We expect the Policy Rate to be maintained at 14.50% as the Central Bank looks to create an enabling environment to spur economic activity.

Government approves partial bailout for Customers of collapsed Fund Management companies which are yet to be liquidated.

• The Securities and Exchange Commission has announced the Government’s directive to proceed with a partial refund for customers of the 27 remaining Fund Management firms which are yet to be formally liquidated.
• The exercise comes with a cap of GHS 50,000.00 for 92,460 claims against these firms.

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• The GSE-CI and GSE-FSI made week-on-week gains of 0.44% and 0.91% respectively, as the market closed with a year-to-date return of -19.29%.
• At last week's auction, Government raised GHS 2,160.65m from Cedi denominated securities and US$ 388.90m from a 3-Year USD Bond.

ECONOMIC SCOOP

Inflation drops for the third straight month to 10.10% for October 2020

• Ghana’s inflation rate declined to 10.10% in October 2020 from 10.40% in September 2020.  
• However, Food inflation increased to 12.60% from 11.20%, while inflation on Non-Food items dropped to 8.30% from 9.80%.
• The Greater Accra Region recorded the highest inflation rate of 15.20% whereas the Upper West Region had the lowest inflation rate of 1.60%.

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• The two major indicies, GSE-CI and GSE-FSI recorded significant drops last week as the market closed with no gainers, helping deepen the impact of the losses on EGH and SOGEGH stocks.
• Government raised a total of GHS 1,924.00m at last week's auction, out of which GHS 1,155.92m was through 91, 182 and 364-Day Bills and the remaining GHS 768.08m raised through a 2-Year issuance.

ECONOMIC SCOOP

Gold production in Ghana in 2021 is expected to grow by about 9 percent, the biggest growth rate in years.

• This is expected to push the volume of gold produced in Ghana to 4.65 million ounces next year according to a report by Global market analysis outfit Fitch Solutions.
• The increase in gold production will help Ghana maintain its position as Africa’s largest gold producer in 2021, after surpassing South Africa in terms of gold production in 2019.
• According to Fitch Solutions, significant growth in Gold production in Ghana will be driven by the Phase 2 completion of AngloGold Ashanti’s Obuasi Project.

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