• On the back of gains in MTNGH (1.67%) and EGH (1.00%), the two major indices on the GSE trended upwards last week.
• Against a target of GHS 1,012.00m which the Government sought to raise from 91 and 182-Day Bills, a total of GHS 1,179.40m was raised from these issuances. Also, a total of GHS 371.72m was raised from the rollover of a maturing 2-Year Bond, falling short of a target of GHS 1,200.00m.

ECONOMIC SCOOP

The Institute for Energy Security (IES) predicts between 3% - 5% increase in fuel prices

• The IES projects this increase to come into effect this week in the first pricing window of the month.
• This rise in prices is projected on the back of a likely extension of the period of production cuts by OPEC+ which could last up to the first quarter of 2021.
• At the end of November 2020, the price of Brent crude oil was up to around $48, the highest level since March this year.

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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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• 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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• 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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