KEY HEADLINES & INSIGHTS

The International Monetary Fund is open to renegotiating Ghana’s $3 billion financing program with the incoming administration provided accompanying reforms aren’t jeopardized. (Bloomberg, 2024)

Tullow Oil has confirmed that it is engaged in preliminary discussions with US-based Kosmos Energy for a potential all-share acquisition that could reshape the landscape of oil production in West Africa. (Graphic Online, 2024)

Ghana Gold Coin Pricing Update: 1 oz Now Selling at GH₵41,206.58, with 0.50 oz at GH₵21,004.94 and 0.25 oz at GH₵10,933.94 as of 13th December 2024. (Bank of Ghana, 2024)

PRIMARY DEBT MARKET ISSUANCE WEEK

The yields on Government of Ghana (GoG) Treasury bills have seen a modest increase across all maturities this week. The 91-Day GoG Bill rose by 17.11 basis points to 27.7739%, the 182-Day GoG Bill increased by 17.61 basis points to 28.4920%, and the 364-Day GoG Bill saw a smaller rise of 3.73 basis points, reaching 29.9430%. These increases suggest a general upward trend in short-term interest rates, which may reflect tightening financial conditions, possibly driven by monetary policy adjustments, inflation expectations, or shifting market dynamics. Fixed income investors should monitor these movements as they signal higher borrowing costs in the near term.

Source(s): Bank of Ghana

GHANA FIXED INCOME MARKET VOLUME TRADED

The Ghana Fixed Income Market closed the week with a total volume traded of GH₵ 5.49 billion, an upswing compared to GH₵ 4.11 billion posted last week. A total of 15,862 trades were made of which 98.58% were Treasury bills, and 1.25% were attributed to New GoG Notes & Bonds.

Week's Ghana Fixed Income Market Total Volume Traded

Starting at GH₵1.47 billion on December 9, trading activity was primarily driven by Treasury Bills, Sell/Buy Back trades, and New GoG Notes & Bonds. Volumes dropped sharply to GH₵880 million on December 10, with Treasury Bills and New GoG Notes & Bonds remaining key contributors.

Trading rebounded on December 11 to GH₵1.1 billion, supported by the same instruments, and further increased to GH₵1.042 billion on December 12, led by Treasury Bills and Sell/Buy Back trades. The week ended with a slight dip, closing at a trading volume of GH₵993 million.

EQUITY MARKET

This week, trading on the local stock exchange booked a bearish performance, with total share volume declining by 69.49% to 5,038,065 shares, down from last week's 16,513,095 shares. The total traded value, however, surged by 363%, reaching GH₵ 36.25 million, indicating higher-value transactions. Market capitalization experienced a marginal decline, closing at GH₵ 109.16 billion, down from the previous week's value of GH₵109.22 billion.

In terms of market indices, the GSE Composite Index (GSE-CI) closed at 4,733.62, showing a one-week loss of 0.1%, a one-month gain of 1.84%, and a strong year-to-date gain of 51.22%.

Week's Equities Top Gainers & Laggards

Moreover, the GSE Financial Stocks Index (GSE-FSI) also inched up to 2,370.11 points, posting a week gain of 0.08%, a month rise of 2.98%, and a year-to-date gain of 24.64%.

EQUITY MARKET MOST TRADED STOCKS

Source(s): Ghana Stock Exchange

The equity market saw MTN Ghana (MTNGH) dominate trading activity with a volume of 4,054,938 shares at GHS 2.38, reflecting significant investor interest. Guinness Ghana Breweries Ltd. (GGBL) followed with 300,439 shares traded at GHS 5.10, while Unilever Ghana Ltd. (UNIL) recorded 252,004 shares at GHS 17.99. SIC Insurance (SIC) traded 192,666 shares at GHS 0.27. Ecobank Ghana Ltd. (EGH) rounded out the top five with 69,380 shares at GHS 6.50.

TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Source(s): African Markets

COMMODITY MARKET

The commodities market displayed a surge in performance this week, with gold experiencing significant fluctuations. After an initial decline early in the week, gold prices briefly rebounded mid-week, reaching $2,720.00 per ounce on Wednesday. However, the momentum was short-lived, as prices dipped again on Thursday, eventually settling at $2,647.30 per ounce by the close of trading on Friday.

Brent crude oil futures surged from $71.12 to settle at $74.49 per barrel on Friday, its highest since November 22 and a weekly gain of 4.74%. This rally was sanctions on Russia and Iran, lower interest rate forecasts in the U.S. and Europe, and supportive measures from China’s economy.

Source(s): Trading Economics

Cocoa futures surged to close at $11,268 from $9,622.9 per ton last week, booking a weekly gain of 17.10%, due to a deteriorating outlook for the West African cocoa mid-crop. Dealers noted that the weather in the key producing region has been dry of late, weighing on production expectations, while demand remains high.

CURRENCY MARKET

The exchange rates posted a downward trend compared to the previous week, with the Ghanaian cedi marginally appreciating against the major currencies. For USD/GHS, the rate decreased from 14.87 to 14.74, for GBP/GHS, it dropped from 18.96 to 18.62, and for EUR/GHS, it declined from 15.72 to 15.48. This suggests a strengthening of the cedi, possibly due to improved economic factors, increased foreign exchange inflows, or reduced demand for these currencies.

Source(s): Bank of Ghana

DISCLAIMER: The information contained in this weekly update on the financial markets is intended for informational purposes only and should not be construed as financial, investment or other professional advice. The data are derived from internal and external sources that FFC Research finds reliable. FFC Research assumes no responsibility or liability for any actions taken based on the information contained in this report.

Research Analyst - Cedric Asante

Email: cedric.asante@firstfinancecompany.com