RESEARCH at 19 May, 2017

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1 RESEARCH at 19 May, 2017 MARKET OUTLOOK AS AT 19 MAY 2017 SUMMARY 1. Ghana Cedi depreciates against major currencies. 3. Performance of Mutual Funds in Ghana. 2. T-Bill Rates & Commercial Investment rates fall. 4. African Stock Market Highlights. PLEASE NOTE: In this report, Figures highlighted Green mean an increase in rate, amount, etc. Figures highlighted Red mean a reduction in rate, amount, etc. INFLATION PREVIOUS : March, % CURRENT : April, % All-Time High: March, % All-Time Low: May, % Medium Term Target ( 8 +/- 2)% T-Bill Rates (Mon 15 May, 2017 To Fri 19 May, 2017) SOURCE: Bank of Ghana EXCHANGE RATE (Fri 19 May, 2017) SOURCE: Bank of Ghana 91-Day T-Bill has seen a weekly decrease of Day T-Bill has seen a weekly decrease of Year T-Bill has seen a weekly decrease of Year T-Bill remains unchanged With domestic borrowings reaching GHS 55.2 billion March 2017, Government is intent on borrowing less from the public. This has caused Interest rates to fall. Most Investors are likely to begin to consider investing in stocks and other alternative vehicles. One reason for the depreciation of the Cedi was due to the demand of dollars by companies as they prepare to hold their AGM to pay dividend to foreign shareholders, according to some analysts. Also, a lot of business activities are beginning to pick up and as a result importation has increased. GHANA STOCK EXCHANGE COMPOSITE INDEX (GSECI) (Friday 19 May, ) SOURCE: Ghana Stock Exchange / Trading Economics 1, There has been a marginal increase in the GSE Composite Index and Market cap GSE Financial Index remains unchanged. Volume of shares traded on the market was 6,673,750 Shares. Value (GHS) of shares traded on the market was GHS 11,023,256 FML and Goil Gained on the market. There was no losers. ICPL Research_ Market Outlook_19 May 2017 Page 1 of 5

2 GGSECI increased 0.14% to 1, on Friday 19 May, 2017 from 1, in the previous trading session. Historically, the Ghana Stock Market Composite GSE-CI reached an all-time high of in February 2014 and a record low of in December of 2011 Commodity Prices Ghana COMMODITY PRICES Prices of Crude Oil, Gold, Rice, and sugar increased on the international market.. This means extra Cedis could be earned exports of those commodities. Price of Cocoa and coffee, however, decreased on the international market. Investment Rates (Amts of 5,000 to 50,000) Ghana SOURCE: From sample institutions & other sources The sample investment rates provided below are as quoted by various institutions in each category. Actual rates, however, vary per transaction based on negotiations, among other factors. Generally interest rates have been on the decline. Forinstance the 91 Day treasury bill fell to 13.47% this week. Asset Management Firms COMPANIES AMOUNT 91-Day 182-Day 365-Day Ideal Capital Partners 5,000-50,000 24% 26% 27% Databank Asset Mgt Services 50,000 18% 19% N/A FirstBanc Financial Services 5,000-50, % % % Unisecurities 5,000-50, % % 20-23% Sirius Capital 5,000-50, % % % Biege Capital 5,000-50,000 25% 26% 27% All-Time Capital 5,000-50, % 22-25% 23-27% IFS CAPITAL 5,000-50, % % % SEM CAPITAL 5,000-50,000 21% 22% 23% Goldcoast Securities 5,000-50,000 24% 25% 26% NDK Asset management Ltd 5,000-50, % % % HFC Investment 20,000 & Above 14.50% 16.50% 17% CDH Securities Ltd 5,000-50, % % % Mclottey Capital 5,000-50, % 26-27% % SGL Royal Kapita 5,000-50, % 19-22% 20-24% Apex Capital Pertners 5,000-50,000 21% 22% 23% Brooks Asset Management 5,000-50, % 20-22% 21-23% EDC Investment 5,000-50,000 7% 11% 21% Cal Asset Management 5,000-50,000 16% 17% 18% SAS Investment 5,000-50, % 23-24% 25-26% Ideal Capital Partners (ICPL), All-Time Capital and Beige Capital recorded high rate for the week under review. HFC Investment, EDC Investment, Unisecurities, FirstBanc and Databank recorded low rates for the week under review. Also, due to the fall in T-bill rates, CDH Securities has decreased their rate for 1 year tenor. They explained over the phone that the decision was taken due to their forecast of a further reduction in interest rates. ICPL Research_ Market Outlook_19 May 2017 Page 2 of 5

3 MUTUAL FUND SOURCE: Doobia.com & Some company websites MONEY MARKET EDC FIXED INCOME EDC Investment % 28-Apr-2017 FIRSTFUND FirstBanC % 11-May-2017 GALAXY MFUND GALAXY CAPITAL % 12-Apr-2017 HFC UNIT HFC INVESTMENT % 18-May-2017 Mfund Databank Asset Mgmt Services Ltd % 18-May-2017 MyWealth Trust IFS Capital Mgt Ltd % 31-Jan-2017 Omega Income Omega Capital Ltd % 18-May-2017 Richie Rich IFS Capital Mgt Ltd % 31-Jan-2017 SEM MoneyPlus SEM Capital Mgt Ltd % 07-Apr-2017 TTL IncomeHaven TTL Capital Limited % 29-Mar-2017 All-Time Bond All-Time Capital Limited % 25-Apr-2017 EdiFund T1 Databank Asset Mgt Services Ltd % 18-May-2017 EdiFund T2 Databank Asset Mgt Services Ltd % 18-May-2017 Gold Money Gold Coast Fund Mgt % 12-May-2017 Sirius Opportunity Sirius Capital Limited % 01-May-2017 STANLIB Cash STANLIB Ghana Ltd % 18-May-2017 STANLIB Income STANLIB Ghana Ltd May-2017 IDEAL SIKA FUND IDEAL CAPITAL PARTNERS May-2017 Firstfund recorded the highest yield (YTD) of 34.30% for the week under review. This was followed by GalaxyMfund with a yield of 29.94%. RichieRich and MyWealth Trust recorded the lowest yield of 0% for this week IDEAL SIKA FUND Ideal Sikafund has started off with a good performance. It recorded a yield of 18.48% after 51 days from IPO date, beating rates of both inflation and T-bills. Currently Inflation is 13% and 91 & 182 Day T-Bill rates range between 13.47% and 15.32%. ETHICAL FUND ARK Fund Databank Asset Mgt Services Ltd % 18-May-2017 There is only one ethical fund in the Industry REAL ESTATE FUND HFC Reit HFC Investment Services Ltd % 18-May-2017 There is only one real estate fund in the Industry ICPL Research_ Market Outlook_19 May 2017 Page 3 of 5

4 MUTUAL FUNDS (BALANCED FUND & EQUITY FUND) SOURCE: doobia.com SOURCE: Doobia.com & Some Company websites EQUITY FUND Anidaso Fund New Generation Investment % 06-Apr-2017 Dalex Vision Dalex Capital % 09-May-2017 EPAcK Databank % 18-May-2017 Gold Fund Gold Coast % 12-May-2017 HeritageFund FirstBanC % 10-May-2017 HFC Equity HFC Investment Services Limited % 18-May-2017 Legacy Trust IFS Capital Management Ltd % 31-Jan-2017 NTHC Horizon NTHC Limited % 18-Jan-2017 Omega Equity Omega Capital Limited % 18-May-2017 SAS Fortune SAS Investment Mgt Limited % 19-May-2017 SEM ALL- AFRICA SEM Capital Management Limited % 7-Apr-17 SAS Fortune recorded the highest yield of 15.32% for the week under review followed by Anidaso fund with a yield of 10.93% Legacy Trust recorded the lowest yield of 0% for the week under review most likely due to lack of information to update the fund s performance. BALANCED FUND Fund Fund Manager Bid Price Offer Price YTD Last Updated BFUND Databank Asset Management Servi % 18-May-2017 CAMPUSFUND SDC Capital Limited % 30-Apr-2017 CCMF Black Star Advisors % 18-Apr-2017 CDH BALANCED CDH Asset Management Ltd % 04-May-2017 EDC BALANCED EDC Investments Limited % 28-Apr-2017 Freedom Fund Liberty Asset Mgt Ltd % 07-Apr-2017 GalaxyBfund Galaxy Capital Ltd % 12-Apr-2017 HFC F Plan HFC Investment Services Limited % 18-May-2017 Kiddifund EDC Investments Limited % 28-Apr-2017 McTrust McOttley Capital Limited % 17-May-2017 MET Wealth MET Capital Group Limited % 02-Feb-2017 Nordea Income Nordea Capital Limited % 02-May-2017 SEM Income SEM Capital Mgt Ltd % 07-Apr-2017 CDH Balanced recorded the highest yield of 13.17% for the week under review. METWealth recorded the lowest yield of 0% for this week since its launch on 30 April This is most likely due to lack of information to update the fund s performance. ICPL Research_ Market Outlook_19 May 2017 Page 4 of 5

5 AFRICAN STOCK & FOREIGN EXCHANGE MARKET STOCK MARKET OF SOME AFRICAN COUNTRIES COUNTRY INDEX LEVEL DAY CHANGE WEEKLY CHANGE MONTHLY CHANGE YEARLY CHANGE DATE Ghana GGSECI 1, % 0.86% 2.47% 7.79% 19-May-17 Nigeria NSE-ALL Share 28, % -0.28% 11.17% 3.63% 19-May-17 South Africa JALSH - ALL Share 54, % 0.67% 3.68% 3.40% 19-May-17 Egypt Egypt EGX 30 12, % 0.35% 0.44% 72.71% 19-May-17 Kenya Nairobi 20 3, % 1.26% 4.32% % 19-May-17 Bostwana Gaborone 9, % % % -8.13% 19-May-17 Tunisia TUN 5, % -0.67% 1.34% 4.05% 19-May-17 Namibia NSXOverall 1, % -0.67% 1.34% 4.05% 19-May-17 The African Stock Markets recorded a mixed outcome for equity investors the week under review. The Kenya Stock Market recorded the weekly highest gain of 1.26% followed by Ghana Stock Market with a weekly gain of 0.86%. The Tunisia and Namibia Stock Markets recorded the week s lowest loss of FOREIGN EXCHANGE MARKET - AFRICA COUNTRY INDEX PRICE DAY CHANGE WEEKLY CHANGE MONTHLY CHANGE YEARLY CHANGE DATE Ghana USDGHS % 4.21% 7.88% 14.44% 19-May-17 Nigeria USDNGN % 3.43% 3.26% 58.45% 19-May-17 South Africa USDZAR % -0.84% 0.75% % 19-May-17 Egypt USDRGP % 0.53% 0.25% % 19-May-17 Kenya USDKES % -0.08% -0.27% 2.20% 19-May-17 Bostwana USDBWP % % -7.71% 19-May-17 Tunisia USDTND % -2.39% 0.30% 15.84% 19-May-17 Namibia USDNAD % -0.99% 0.66% % 19-May-17 Most African countries currencies depreciated against the United State Dollar due to fall in prices of most traditional exports. The Namibian dollar appreciated the highest against the dollar (-0.99%) followed by South African Rand of (-0.84) for the week under review. The Ghanaian Cedi depreciated the highest against the United State Dollar (4.21%) for the week under review. Prepared by: Peter Nii Odoi Charway Head, Research & Strategy peter@idealcapitalpartnersgh.com Eugene Amponsah-Asiamah Research Officer eugene@idealcapitalpartnersgh.com ICPL Research_ Market Outlook_19 May 2017 Page 5 of 5