RESEARCH at 18 th August, 2017

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1 RESEARCH at 18 th August, 2017 MARKET OUTLOOK AS AT 18 AUGUST 2017 SUMMARY 1. Market Performance on the Ghana Stock Exchange. 3. Prices of major commodities fall. 2. Cedi performance against major currencies. 4. Performance of Mutual Funds in Ghana 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. MARKET PERFORMANCE (GSECI) (Friday 18 August, 2017) Indices and Market Cap Level Previous Level Change % Change GSE Composite Index 2, , % GSE Financial Index 2, , % Market Cap (GHS'mn) 57, , % Gainers EQUITY PRICE (GHS) SOURCE: Ghana Stock Exchange % Change EGL % BOPP % SCB % MARKET INDICES TREND Performance YTD (35.28%) MARKET SUMMARY SOURCE: Doobia.com 2, At the close of the day (18 August 2017), the Ghana Stock Exchange Composite Index (GSECI) extended gains, as the benchmark index advanced 0.46% to close at 2, The performance was from sustained interest in EGL, BOPP and SCB which moved the GSE-CI to a current YTD of 35.28% The Ghana Stock Market Composite Index (GSE-CI) reached an all-time high of in February 2014 and a record low of in December of 2011 GAINERS (As at Friday, 18 Aug, 2017) Investors gained as market capitalization increased by 0.12% to GHS 57, million. Volume traded on Friday 18 August 2017 was 217,074 valued at GHS 591,412.Activity levels increased on the market with volumes traded as SOGEGH accounting for 56% of the total volume traded with ETI accounting for 15% of total volume traded for the day. Value traded on Friday 18 August 2017 was GHS 591,412. Activity levels increased on the market with value traded as SCB accounting for 59% of the total value traded with SOGEGH accounting for 14% of total value traded for the day. There were 3 gainers and no losers at the end of the day. Performance across all indices was positive. The financial indices, GSE-CI and GSE-FI increased by 0.46% and 0.66% respectively. STOCK MARKET OUTLOOK FOR NEXT WEEK Investor interest is expected to increase in GCB on the back of the acquisition of two banks (UT Bank and Capital Bank). ICPL Research_ Market Outlook_18 August 2017 Page 1 of 5

2 T-Bill Rates (Mon 14 August, 2017 To Fri 18 August, 2017) 91-Day T-Bill has seen a weekly increase of Day T-Bill has seen a weekly increase of 0.08 PERIOD 14/8/2017 7/8/2017 Interest Rate (This week) Interest Rate (Last week) 1-Year T-Bill & 2- Year T- Bill remains the same. SOURCE: Bank of Ghana Weekly Ch 91-Day % Day % Year % Year Fixed Note % EXCHANGE RATE (Fri 18 August, 2017) SOURCE: Bank of Ghana Currency Pairs Code Buy Sell Average Day %Ch U. S. Dollar USDGHS % Pound GBPGHS % Sterling Euro EURGHS % Canadian CADGHS Dollar % CFA Franc GHSXOF (BCEAO) % Chinese CNYGHS Renminbi % NAIRA GHSNGN % South ZARGHS % African Rand INFLATION PREVIOUS : June, % CURRENT : July, % All-Time High: March, % All-Time Low: May, % Medium Term Target ( 8 +/- 2)% The inflation rate in Ghana declined to 11.9 percent in July of 2017 from 12.1 percent in June. The inflation rate fell for the third consecutive month to the lowest inflation rate since September of 2013, on the back of a stable cedi and easing non-food prices, namely transport. The country is committed to lowering inflation to 11.2 percent by the end of the year to restore restore macroeconomic stability under a three year assistance programme with the IMF. MONETARY POLICY RATE (MPR) SOURCE: Bank of Ghana / Trading Economics PREVIOUS : May, % CURRENT : June, % All-Time High: March, % All-Time Low: Dec, % The Bank of Ghana lowered its monetary policy rate (MPR) by 150bps to 21 percent on 24th July 2017, relative to market expectations of 100bps cut. ICPL Research projected a reduction in the MPR between 50bps and 100bps. The actual rate of reduction, however, always entirely depends on the Bank of Ghana, considering their assessment of performance of the key indicators and their outlook on the market. BOG reduced the MPR on the back of an improvement in crude oil production and reduction in inflation which is expected to slow down further. The Governor of the Bank of Ghana, Dr Ernest Addison, assured the general public that lending rates will soon follow in the line with the reduction in the benchmark (MPR). Banks and analysts blame the slow pace of reduction of lending rates mainly on the high incidence of Non Performing Loans (NPL) in the system. ICPL Research_ Market Outlook_18 August 2017 Page 2 of 5

3 COMMODITY PRICES (Fri 18 August, 2017) COMMODITIES CURRENT PRICE(USD) PREVIOUS PRICE (USD) WEEKLY CH Crude Oil % Gold 1, , % Cocoa 1, , % Rice % Coffee % Sugar % Prices of sugar increased on the international market. This means extra dollars could be earned by exporting those commodities. Prices of crude oil, gold, cocoa, rice and coffee however, decreased on the international market. INVESTMENT RATES FOR ASSET MANAGEMENT FIRMS 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. COMPANIES AMOUNT 91-Day 182-Day 365-Day HIGHLIGHTS Ideal Capital Partners 5,000-50, % 26.00% 27.00% Databank Asset Mgt Services 50, % 13.08% 15.00% FirstBanc Financial Services 5,000-50, % 20.00% 21.00% Unisecurities 5,000-50, % 22.00% 23.00% Sirius Capital 5,000-50, % 17.00% 18.00% Biege Capital 5,000-50, % 31.00% 32.00% All-Time Capital 5,000-50, % 26.00% 26.50% IFS CAPITAL 5,000-50, % 20.50% 22.50% SEM CAPITAL 5,000-50, % 21.00% 22.00% Goldcoast Securities 5,000-50, % 25.00% 26.00% NDK Asset management Ltd 5,000-50, % 21.50% 22.50% HFC Investment 20,000 & Above 11.50% 12.50% 13.50% CDH Securities Ltd 5,000-50, % 26.50% 24.00% Mclottey Capital 5,000-50, % 24.50% 25.00% SGL Royal Kapita 5,000-50, % 18.00% 21.00% Apex Capital Pertners 5,000-50, % 22.00% 23.00% Brooks Asset Management 5,000-50, % 18.50% 20.50% EDC Investment 5,000-50, % 11.00% 21.00% Cal Asset Management 5,000-50, % 17.00% 18.00% SAS Investment 5,000-50, % 23.00% 25.00% The SOURCE: general Doobia.com public & Some is still company pushing websites for a reduction in lending rates by the commercial banks, consistent with the reduction in the benchmark MPR (21%). The Governor of Bank of Ghana, Dr Ernest Addison on 24 th July 2017, assured the general public that lending rates will soon follow in the line with the benchmark (MPR). Some analysts are of the view that a reduction of rates on the market, consistent with the YTD reduction in the benchmark monetary policy rate (MPR) by 3% to 21% on 24 July, 2017, will take some time due to the high incidence of non-performing loans (NPL), among others. Ideal Capital Partners (ICPL), All-Time Capital and Beige Capital still recorded relatively high rate for the week under review, whiles EDC and CAL recorded relatively lower rates with the aim of discouraging investment in fixed deposit to focus on their mutual funds. ICPL Research_ Market Outlook_18 August 2017 Page 3 of 5

4 MUTUAL FUNDS IN GHANA SOURCE: Doobia.com MONEY MARKET (Annualized Yield) Fund Fund Manager Bid Price Offer Price ANNU. YIELD Last Updated EDC FIXED INCOME EDC Investment % 14-Aug-2017 FIRSTFUND FirstBanC % 07-Aug-2017 GALAXY MFUND GALAXY CAPITAL % 07-Aug-2017 HFC UNIT HFC INVESTMENT % 17-Aug-2017 Mfund Databank Asset Mgmt Services Ltd % 15-Aug-2017 MyWealth Trust IFS Capital Mgt Ltd N/A 31-Jan-2017 Omega Income Omega Capital Ltd % 16-Aug-2017 Richie Rich IFS Capital Mgt Ltd N/A 31-Jan-2017 SEM MoneyPlus SEM Capital Mgt Ltd % 14-Aug-2017 TTL IncomeHaven TTL Capital Limited % 29-Jun-2017 IDEAL SIKA FUND IDEAL CAPITAL PARTNERS % 18-Aug-17 MONEY MARKET ( Year To Date) All-Time Bond All-Time Capital Limited % 10-Aug-2017 EdiFund T1 Databank Asset Mgt Services Ltd % 15-Aug-2017 EdiFund T2 Databank Asset Mgt Services Ltd % 15-Aug-2017 Gold Money Gold Coast Fund Mgt % 16-Aug-2017 Sirius Opportunity Sirius Capital Limited % 14-Aug-2017 STANLIB Cash STANLIB Ghana Ltd % 17-Aug-2017 STANLIB Income STANLIB Ghana Ltd % 17-Aug-2017 IDEAL SIKA FUND IDEAL CAPITAL PARTNERS % 18-Aug-17 Firstfund recorded the highest yield of 31.13% for the week under review followed by GalaxyMfund with a yield of 29.02% RichieRich and MyWealth Trust recorded the lowest yield of 0% for this week. This may be due to a lack of information to update the funds current performance. Ideal Sikafund current annualized yield of 18.31%, is above inflation of 11.90% (July) and the benchmark 91-Day T-bills rate of 12.62% as at 11 th August Ideal Sika Fund s annualized performance of 18.31% compares with Omega Income s performance of 19.6% and MFunds performance of 20.03%. We estimate an average Annualized Yield of 23.5%, per list in table above. Also, Ideal Sika Fund s YTD performance of 8% is the lowest as shown in the table above. Ideal Sika Fund was launched on 9 March, We estimate an average YTD performance of 13.4% per the list in table above. ETHICAL FUND ARK Fund Databank Asset Mgt Services Ltd % 15-Aug-2017 There is only one ethical fund in the Industry REAL ESTATE FUND HFC Reit HFC Investment Services Ltd % 17-Aug-2017 There is only one real estate fund in the Industry SOURCE: doobia.com SOURCE: Doobia.com & Some Company websites ICPL Research_ Market Outlook_18 August 2017 Page 4 of 5

5 EQUITY FUND Anidaso Fund New Generation Investment % 17-Aug-2017 Dalex Vision Dalex Capital % 18-Aug-2017 EPAcK Databank % 15-Aug-2017 Gold Fund Gold Coast % 16-Aug-2017 HeritageFund FirstBanC % 07-Aug-2017 HFC Equity HFC Investment Services Limited % 17-Aug-2017 Legacy Trust IFS Capital Management Ltd N/A 31-Jan-2017 NTHC Horizon NTHC Limited % 18-Jan-2017 Omega Equity Omega Capital Limited % 16-Aug-2017 SAS Fortune SAS Investment Mgt Limited % 17-Aug-2017 SEM ALL- AFRICA SEM Capital Management Limited % 14-Aug-2017 SAS Fortune recorded the highest yield of 33.10% for the week under review followed by SEM ALL- AFRICA with a yield of 31.02% Legacy Trust recorded the lowest yield of 0% for this week. This may be due to a lack of information to update the funds current performance. BALANCED FUND Fund Fund Manager Bid Price Offer Price YTD Last Updated BFUND Databank Asset Management Servi % 15-Aug-2017 CAMPUSFUND SDC Capital Limited % 20-Jul-2017 CCMF Black Star Advisors % 16-Aug-2017 CDH BALANCED CDH Asset Management Ltd % 16-Aug-2017 EDC BALANCED EDC Investments Limited % 14-Aug-2017 Freedom Fund Liberty Asset Mgt Ltd % 07-Apr-2017 GalaxyBfund Galaxy Capital Ltd % 07-Aug-2017 HFC F Plan HFC Investment Services Limited % 17-Aug-2017 Kiddifund EDC Investments Limited % 15-Aug-2017 McTrust McOttley Capital Limited % 16-Aug-2017 Nordea Income Nordea Capital Limited % 16-Aug-2017 SEM Income SEM Capital Mgt Ltd % 14-Aug-17 Galaxy Bfund recorded the highest yield of 26.45% for the week followed by EDC Balanced with 24.77% for the week under review. Freedom Fund recorded the lowest yield of 3.25% for this week. Prepared by: Peter Nii Odoi Charway Head, Research & Strategy peter@idealcapitalpartnersgh.com Eugene Amponsah-Asiamah Research Officer eugene@idealcapitalpartnersgh.com ICPL Research_ Market Outlook_18 August 2017 Page 5 of 5