BUSINESS NEWS | GHANA AND BEYOND 🌍 17/07/2020
🚩The National Pensions Regulatory Authority, NPRA, says the impact of COVID-19 on the pensions industry globally is a reminder to developing countries such as Ghana to institute and implement long-term sustainable plans for the aged. According to the NPRA, most pension funds have suffered a setback because some of the major financial assets where pension funds were invested witnessed a huge dip in returns due to uncertainties caused by the pandemic. Like all other sectors, COVID-19 has also hit the pensions industry, reducing the returns of fund managers. Typically, pension funds are invested in long term instruments due to their nature. In developed economies, pension funds serve as a pool of money to invest in the real sectors to generate returns upon which part is given to pension contributors when they retire.
🚩The Institute for Energy Security (IES) has predicted that fuel prices may go up slightly. Going by the 3.68% surge in price of Brent crude oil, in addition to the 5.59% and 5.31% rise in the prices of Gasoline and Gasoil respectively on the international market; the IES foresees prices of fuel on the domestic market going up marginally even though the Cedi appreciated against the US dollar by 0.17%. However, the IES said, competition between Oil Marketing Companies (OMCs) to control and gain more market shares, and mounting pressure on government to reduce prices of fuel may result in fuel prices remaining largely stable within the second Pricing-window of July 2020.
🚩A Research article by the Institute for Energy Security (IES) has made a case for the strong consideration of Solar and Wind energy sources in Ghana and Africa’s post-COVID recovery plan. In an article authored by IES Research and policy Analyst Raymond Nuworkpor citing multiple authorities, The IES said not only does the adoption reduce pressure on the national grid because of “its unreliability in terms of power supply”, but “provides cheaper sources of energy at more stable generation and use levels, that enable businesses to adequately plan and grow.” The institute added further: “The green energy sources are rapidly becoming cheaper than fossil fuel powered plants. 56 percent of capacity additions for utility-scale renewable power in 2019 achieved lower electricity costs than cheapest coal plants. There will also be 23 billion annual potential savings if the costliest 500 GW of existing coal were replaced by solar and wind. Also, 1.8 gigatons of carbon dioxide reduction annually possible, equalling to 5 percent of the total global carbon dioxide emissions last year. And lastly, a cumulative global GDP will grow by US$98 trillion, according to IRENA.”
🚩A swiss based Engineering Company NEK has stated its readiness to construct 1,000 megawatts of wind power for the Country as part of efforts to implement the Renewable Energy Act (Act 832). The Project which is in two phases, will see 150 megawatts of wind power constructed and a second phase of 75 megawatts constructed once Government gives the go-ahead for the construction. NEK’s wind farms will produce electricity on a much cheaper level in a sustainable manner. The Ayitepa Wind Farm, for instance will offer ECG an amount of 8.9 cent per kilowatt per hour which is much less than any other electricity Producers can offer.
🚩The government has reiterated its commitment to improving the livelihood of small and micro business operators, especially among the youth to help minimize unemployment. Mr Dennis Armah-Frempong, the Agona East District Chief Executive (DCE), said government’s priority was to initiate mentorship for business growth and to provide funding opportunities for businesses in rural and urban communities to reduce poverty. Mr Armah-Frempong said this in an address at a training workshop for small and micro businesses at Nsaba in the Agona East District of the Central Region. The workshop was initiated by the Ministry of Business Development in collaboration with the Agona East District Assembly and the National Entrepreneurship and Innovative Programme of the Office of the President.
🚩Exactly a week after commercial airlines resumed flight services on Lagos-Abuja route, local airlines are struggling to sustain operations and meet cost as load factor hovers around 40 per cent. The day-one optimism of about 70 per cent traffic across some of the local carriers has waned. Some of the operators complained about traveler apathy, attendant low patronage and imminent collapse without government support. To cover cost of operation and improve traffic flow, local airlines have urged the Federal Government to fast-track the release of bailout funds and reopen international routes.
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✴INTERBANK FOREX RATES 💴💰
US$GH¢ Buy 5.6682 Sell 5.6738
GB£GH¢ Buy 7.1447 Sell 4.1920
CAD$GH¢ Buy 4.1880 Sell 4.1920
JP¥GH¢ Buy 0.0529 Sell 0.0530
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EU€GH¢ Buy 6.4787 Sell 6.4843
CHN¥GH¢ Buy 0.8122 Sell 0.8129
GH¢CFA Buy 101.1608 Sell 101.2482
GH¢NG₦ Buy 67.0958 Sell 67.1839
CRYPTOCURRENCY MARKET
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Ethereum $233.18 🔻-2.19%
Tether $1.00 🔻-0.17%
Ripple $0.193840 🔻-1.57%
Bitcoin Cash $223.72 🔻-1.53%
Binance Coin $17.04 🔻-3.05%
Litecoin $41.92 🔻-3.10%
EOS $2.49 🔻-1.63%
Cardano $0.102501 🔻-7.65%
Stellar $0.124898 🔼+4.65%
💵Bloomberg USDGHS Cross Rate – 5.7505
🔼GSE DAILY GAINERS➖%CHANGE➖PRICE
No gainers for today
🔻GSE DAILY LOSERS➖%CHANGE➖PRICE
ETI -14.29% ➡Gh¢0.06
〽Inflation rate in Ghana ➡ 11.20% (-0.88%)
🏦Ghana Reference Rate ➡ 14.75% (-0.34%)
✳Policy Rate in Ghana ➡ 14.50% (-9.38%)
¶ TREASURY BILLS RATE💸
91 – Day Discount Rate 13.5162% Interest Rate 13.9889%
182 – Day Discount Rate 13.1019% Interest Rate 14.0204%
364 – Day Discount Rate 14.4685% Interest Rate 16.9160%
1 Year Fixed Note Interest Rate 16.5672%
2 Year Fixed Note Interest Rate 18.7500%
3 Year Bond Interest Rate 19.5000%
5 Year Bond Interest Rate 19.2500%
6 Year Bond Interest Rate 21.0000%
10 Year Bond Interest Rate 19.8000%
20 Year Fixed Rate Bond 20.2000%
🐂GHANA GOV’T EUROBOND RATES 🏦
7 Year Bond Coupon Rate 7.8750%
12 Year Bond Coupon Rate 8.1250%
31 Year Bond Coupon Rate 8.9500%
🛢Average Petrol & Diesel Price Per Litre – Gh¢4.85 (🔼+4.30%)
GSE 2020 GAINERS ➖ YTD% ➖ PRICE
SIC +25.00% ➡Gh¢0.10
CMLT +22.22% ➡Gh¢0.11
ALW +10.00% ➡Gh¢0.11
DASPHARMA +2.56% ➡Gh¢0.40
🔻GSE 2020 LOSERS ➖ YTD% ➖ PRICE
FML -57.52% ➡Gh¢1.75
GGBL -28.99% ➡Gh¢1.20
RBGH -28.57% ➡Gh¢0.40
CAL -26.97% ➡Gh¢0.65
GCB -26.67% ➡Gh¢3.74
🏧 MARKET INDEXES
*Dow Jones Index🚂⛽ 26,734.71 -135.39 -0.50%
*S&P 500 🏦 10,473.83 -76.66 -0.73%
*Nasdaq Index📲💻 3,215.57 -10.99 -0.34%
- NYSE Composite Index 12,350.11 -41.21 -0.33%
*London FTSE 100 6,250.69 -41.96 -0.67%
*Germany DAX 12,874.97 -56.01 -0.43%
*Japan NIKKEI 225 22,830.16 +59.80 +0.26%
*Hong Kong HANG SENG 24,970.69 -510.89 -2.00%
*Shanghai Shenzhen 300 4,516.25 -228.22 -4.81%
*S&P/ASX 200 Index 6,016.40 +5.53 +0.09%
*Bloomsberg EU 500 246.60 -0.93 -0.38%
*FTSE/JSE South Africa Top40 51,363.49 -243.21 -0.47%
*Nairobi SE 20 Share 1,906.43 -7.14 -0.37%
*Nigeria SE Main-Board Index 24,330.06 +197.76 +0.82%
*GSE Composite Index 1874.21 -7.24 -0.38%
*GSE Financial Index 1722.38 -13.38 -0.77%
GSE INDEXES ⏸ 2020 YTD RETURNS%
*GSE Composite Index 1,874.21 🔻-16.97%
*GSE Financial Index 1,722.38 🔻-14.72%
💧MUTUAL FUNDS IN GHANA♣
📈EQUITY FUNDS ➰YTD%
Anidaso Fund 🔻-4.56%
EPAcK 🔻-17.08%
Republic Equity 🔻-2.43%
SAS Fortune 🔻-3.42%
⚖BALANCED FUNDS ⏸YTD%
Bfund 🔻-1.04%
CCMF 🔼+8.60%
CM Fund 🔼+7.04%
Dalex Vision 🔼+7.14%
EDC Balanced 🔻-6.05%
Kiddifund 🔼+0.30%
Fidelity Balanced Trust 🔼+2.60%
EdiFund T2 🔼+2.74%
Plus Balanced Fund 🔼+6.59%
Republic F Plan 🔼+0.06%
UMB Balanced 🔼+4.45%
⚙FIXED INCOME FUNDS 🛡YTD%
EDC Fixed Income 🔼+8.09%
Fidelity Fixed Income Trust 🔼+8.81%
Fixed Income Alpha Plus 🔼+11.52%
Plus Income Fund 🔼+8.84%
SEM Income 🔼+8.20%
STANLIB Income 🔼+9.39%
🏦MONEY MARKET FUNDS ⏱YTD%
EdiFund T1 🔼+7.88%
Mfund 🔼+8.63%
Republic Unit 🔼+5.55%
SEM MoneyPlus 🔼+7.17%
STANLIB Cash 🔼+8.79%
✴ COMMODITIES MARKET
*Brent Crude $/barrel⛽ $43.40 +0.03 +0.07%
*Natural Gas 🏭 $/million BTUS $1.72 0.00 -0.06%
*Gold 👑 $/troy ounce $1,798.50 -1.80 -0.10%
*Silver 💍 $/troy ounce $19.55 -0.02 -0.12%
*Corn 🌽 $/bushel $332.50 +2.25 +0.68%
*Cocoa 🍫 $/metric ton $2,161.00 +26.00 +1.22%
*Coffee ☕ ¢/pound $98.35 +1.15 +1.18%
*Sugar🎂 ¢/pound $11.79 -0.03 -0.25%
Sources: Bank of Ghana, Bloomberg, GSE, Reuters, Citifm, Myjoyonline, Ghanaweb, Doobia, BBC, Graphic Business, B&FT, StarFmonline.
Compiled By:
Prince Henry Danquah
Bora Capital Advisors Ltd.
+233(0)50-002-3155