1. Art and Diseño

MARKET SUMMARY REPORT
30th January 2015
TABLE OF CONTENT
Economy Highlight
 BoG to issue GHȻ630million bond in February
 Government to decouple Economic Planning from Finance Ministry
Top Business
 Producer Price Inflation falls by 34.2%
 Tullow-led TEN project 'more than 50% complete
Foreign Bids
 Cocoa Enters Bear Market as Chocolate Addiction Tempers
 Cheap Oil Burns $390 Billion Hole in Investors' Pockets
Market Information
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Treasury Bill Rate
Bank of Ghana Indicative rate
GSE Summary
Commodity News
Investment Funds
Economy Highlight
BoG to issue GHȻ630million bond in February
Source: Myjoyonline
The Bank of Ghana has scheduled February 19 next month to auction government's 3- year fixed
rate bond to raise GHȻ630 million from the capital market to refinance government's debts
maturing in the first half of this year. The amount to be raised next month is the first of two 3-year
fixed rate bonds government has planned to issue this year. The coupon rate for the bond is
expected to reflect the highest competitive bid accepted at the auction for the security. Aside
from paying its maturing debts, the funds raised from the bond issuance next month will also be
used to finance government's liquidity challenges.
The Bank of Ghana further explained that raising the GHȻ630 million has become necessary
because of the need to "rollover maturities, restructure government debts, and also for liquidity
management". Earlier this year, the Bank of Ghana revealed government's intention to borrow
GHȻ25.42 billion from the domestic market within the first six months of the year: an amount that
is twice the GHȻ12.72 billion it borrowed through the issuance of government securities in the
same period last year. According to the government's debt issuance plan for the first half of this
year, in February alone it is expected to raise about GHȻ4.15 billion through various securities
including Treasury bills, 1-year and 2- year fixed notes.
Government to decouple Economic Planning from Finance Ministry
Source: Myjoyonline
The Government is to decouple Economic Planning functions from the Ministry of Finance and
Economic Planning, to strengthen development management by more closely linking plans with
budgets. The decoupling will ensure that the National Development Planning Commission
(NDPC) takes over the economic planning functions of the State. The transfer of functions,
according to Dr. Nii Moi Thompson, NDPC Director-General, will also ensure that ultimately all
Ministries, Departments and Agencies (MDAs), as well as Municipal, Metropolitan, and District
Assemblies (MMDAs), will work with the Commission, to align their plans with national
development priorities before they are funded by the Ministry of Finance.
NDPC statement signed by Mr David Owusu-Amoah, Head of Public Affairs, and copied to the
Ghana News Agency in Accra on Wednesday, explained that President John Dramani Mahama
had already given directives for the decoupling. The statement said the two institutions have
met several times to determine the scope and nature of the transfer. He cautioned, however,
that the country’s development efforts would be futile without “extensive institutional reforms.” In
this regard, he said, the Commission has incorporated “soft issues,” such as work attitudes, and
“core national values,” into its medium-term development framework which are being
implemented by government. According to the statement, the decoupling process was
disclosed to Heads of Development Cooperation Agencies in Ghana, during a working visit to
the NDPC headquarters to familiarize themselves with the work of the Commission.
Top Business
Producer Price Inflation falls by 34.2%
Source: Ghana Web
The Producer Price Inflation (PPI) rate for December 2014 fell to 34.2 per cent, down from a
revised 37.6 per cent recorded in November 2014, the Deputy Government Statistician Mr Baah
Wadieh said on Wednesday. The PPI measures the average change over time in the prices
received by domestic producers for the production of their goods and services. Mr Wadieh said
the fall in global oil prices accounted for the decline in the PPI. The rate in the petroleum subsector fell to 30.9 per cent in December from 61.1 per cent in November as a result of reduction
in prices of petroleum products.
The Mining and Quarrying sub-sector increased by 2.7 percentage points to 43.3 per cent over
the November 2014 rate of 40.6 per cent. On the other hand, manufacturing, which constitutes
more than two-thirds of total industry, fell by 6.1 percentage points to record 33.1 per cent. The
utilities sub-sector recorded producer price inflation rate of 27.5 per cent, a marginal decrease
of 0.1 percentage point over the November 2014 rate of 27.6 per cent.
Tullow-led TEN project 'more than 50% complete
Source: Ghana Web
Ghana’s second major oil development, the Tullow Oil-led TEN Project has passed the 50%
overall completion stage, according to release by the oil exploration giant. The project, which is
developing the Tweneboa, Enyenra and Ntomme (TEN) oil fields off the coast of Ghana’s
Western Region, is on track for First Oil in mid-2016. The floating production, storage and
offloading (FPSO) vessel, which will receive and store the oil, is under construction in Singapore
and remains on schedule to arrive in Ghanaian waters in February 2016. Key parts of the FPSO
were fabricated by various Ghanaian companies and have been installed on the FPSO. The TEN
fields are expected to produce oil for around 20 years. The project achieved another significant
milestone in the second week of January with the drilling of the 10th well.
This production well, through which crude oil will flow from the Enyenra reservoir, is the final well
required for start-up in mid-2016.The drilling of the 10 start-up wells has therefore been
completed ahead of the March 2015 schedule. Minister for Energy and Petroleum, Emmanuel
Armah-Kofi Buah, said he was delighted to see the country's next big oil project on to achieve its
mid-2016 target for first oil. “I commend Tullow and its partners on progress to date and implore
them to maintain this momentum for the second half of the project”, he said. TEN Project
Director, Terry Hughes, said: “It’s fantastic that we have passed these two important milestones
ahead of schedule. However, we’re only halfway through and we still have a lot to do, so we will
not be resting on our laurels and I am confident we will deliver the project on time for Ghana.”
General Manager of Tullow Ghana, Charles Darku, reiterated the commitment of the TEN
partners to ensuring the timely and complete delivery of another world class oil and gas fields to
support Ghana’s socio-economic development.
Foreign Bids
Cocoa Enters Bear Market as Chocolate Addiction Tempers
Source: Bloomberg News
The world’s chocolate addiction is finally showing signs of easing, sending cocoa futures
tumbling into a bear market. Slowing global economies mean that consumers are looking for
ways to trim disposable spending, and that could leave chocolate off the menu, according to
Jack Scoville, a vice president of Price Futures Group. Cocoa-bean processing, a gauge of
demand, fell in Asia, Europe and North America in the fourth quarter, industry reports showed this
month. Cocoa futures are down about 21 percent since touching a three-year high in
September after an outbreak of Ebola didn’t hamper shipments from West Africa, which
produces 70 percent of global supply. Three straight years of price gains are also encouraging
farmers to increase output.
“Demand is actually slackening, and is not nearly as good as many people had expected,”
Scoville said in a telephone interview from Chicago. “The high prices are doing their job and will
probably bring better-than-expected production. Next year, we may even have a surplus, and
Ebola has not been much of an issue. We have a changed situation.” Cocoa for March delivery
dropped 1.1 percent to settle at $2,686 a metric ton on Jan. 29 on ICE Futures U.S. in New York.
The price is down 20 percent from its $3,371 settlement on Sept. 24, meeting the common
definition of a bear market. Futures surged 38 percent in the previous three years as Asian
consumers led global demand growth, eroding inventories.
Cheap Oil Burns $390 Billion Hole in Investors' Pockets
Source: Bloomberg News
Investors have a message for suffering U.S. oil drillers: We feel your pain. They’ve pumped more
than $1.4 trillion into the oil and gas industry the past five years as oil prices averaged more than
$91 a barrel. The cash infusion helped push U.S. crude production to the highest in more than 30
years, according to data compiled by Bloomberg. Now that oil prices have fallen below $45,
any euphoria over cheaper energy will be tempered by losses that are starting to show up in
investment funds, retirement accounts and bank balance sheets.
The bear market has wiped out a total of $393 billion since June -- $353 billion from the shares of
76 companies in the Bloomberg Intelligence North America Exploration & Production index, and
almost $40 billion from high-yield energy bonds, issued by many shale drillers, according to a
Bloomberg index. “The only thing people are noticing now is that gas prices are dropping,” said
Sean Wheeler, the Houston-based co-chairman of the oil and gas industry team for law firm
Latham & Watkins LLP. “People haven’t noticed yet that it’s also hitting their portfolios.” The
money flowing into oil and gas companies around the world in the last five years came from a
variety of sources. The industry completed $286 billion in joint ventures, investments and spinoffs,
raised $353 billion in initial public offerings and follow-on share sales, and borrowed $786 billion in
bonds and loans.
Market Information
Treasury Bill Rate
Monday 26th January, 2015 to Friday 30th January, 2015
Period
Previous Rates
Discount Rates
Interest Rates
Weekly Change in
Rate
91 - Day
25.8426%
24.2663%
25.8335%
0.0091%
182 - Day
26.4121%
23.3296%
26.4103%
0.0018%
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
Friday 30th January, 2015
Currency
Pairs Code
Buying
Selling
U.S Dollar
USDGHS
3.2385
3.2418
Pound Sterling
GBPGHS
4.8950
4.9022
Swiss Franc
CHFGHS
3.5190
3.5230
Australian Dollar
AUDGHS
2.5146
2.5202
Canadian Dollar
CADGHS
2.5762
2.5789
Danish Kroner
DKKGHS
0.4928
0.4933
Japanese Yen
JPYGHS
0.0274
0.0275
New Zealand Dollar
NZDGHS
2.3530
2.3580
Norwegian Kroner
NOKGHS
0.4159
0.4160
Swedish Kroner
SEKGHS
0.3932
0.3936
S/African Rand
ZARGHS
0.2809
0.2812
Euro
EURGHS
3.6689
3.6721
Chinese Reminbi
CNYGHS
0.5184
0.5190
BCEAO
GHSXOF
178.63
178.79
Dalasi
GHSGMD
13.29
13.30
Ouguiya
GHSMRO
93.73
93.82
Naira
GHSNGN
58.26
58.32
Leone
GHSSLL
1325.15
1326.50
WAUA
WAUGHS
0.1420
0.1420
Source: Bank of Ghana
GSE Summary
GSE STOCK INDICES
GSE-CI
GSE-FSI
Previous 28/1/2015
2,166.76
2,128.99
Current 29/1/2015
2,161.14
2,122.43
5.62
6.56
-4.42%
-5.40%
CYTD
01/01/15 -29/1/2015
Source: Ghana Stock Exchange
The GSE-Composite Index (GSE –CI), the benchmark measure of performance of the Ghana
Stock Exchange gained 5.62 points from 2,166.76 to close at 2,161.14, representing a year-todate gain of -4.42%.
The GSE-Financial Stocks (GSE-FSI), which tracks the performance of listed financial stocks, also
gained 6.56 points from 2,128.99 to close at 2,122.43 representing a year-to-date gain of 5.40%.
COMMODITY FUTURES
Commodity
Price
% Change
$48.91
-0.45%
$1,262.69
+0.43%
CORN /BU
$371.50
0.00%
SUGAR /MT
$384.60
-7.30%
COCOA /MT
$2,686.00
-1.07%
CRUDE OIL (BRENT)
GOLD T/OZ
Source: Bloomberg
Investment Funds
Unit Trust and Mutual Funds
Liberty Freedom Fund
as at 27/01/15
Offer
GHC 0.2167
Bid
GHC 0.2146
Year to Date
0.69%
SAS Fortune Fund
as at 28/01/15
Price
GHC 0.4827
Price Change
GHC 0.0002
Year To Date
-5.35%
HFC Equity Fund
as at 28/01/15
Price
GHC 0.4280
Price Change
GHC -0.0019
Year To Date
-0.74%
HFC Unit Trust
as at 28/01/15
Offer
GHC 0.2729
Bid
GHC 0.2757
Year To Date
1.80%
HFC REIT
as at 28/01/15
Offer
GHC 1.9417
Bid
GHC 1.9613
Year To Date
1.11%
M-Fund
as at 28/01/15
Bid Price
GHC 0.5837
Offer Price
GHC 0.5895
Year To Date
1.73%
BFund
as at 28/01/15
Bid Price
GHC 0.3486
Offer Price
GHC 0.3521
Year To Date
0.32%
Source: Business Ghana
Excellence quote
If you are going to achieve excellence in big things, you develop the habit in
little matters. Excellence is not an exception, it is a prevailing attitude.
Colin Powell
Thank you.