KEY HEADLINES
BoG Closes Dek-Nock Investment for Unauthorized Deposit-taking (BoG, 2024)
Government is set to launch a Growth and Opportunity Programme to offer coordinated support for the growth of small and medium-sized enterprises in Ghana. (Ministry of Finance, 2024)
CalBank PLC Reports Strong Recovery in Half-Year Unaudited Results. (CitiNewsroom, 2024)
PRIMARY DEBT MARKET ISSUANCE
Interest rates on 91-day and 182-day Government of Ghana bills have stayed constant from last week at 24.7899% and 26.7468%, respectively. Nevertheless, the 364-day bill displayed a slight rise from 27.7879% to 27.7880%. The stability of the market ensures that investments in government securities with short-term maturities may count on steady profits.
| Security | Current % | Previous % |
|---|---|---|
| 91-Day GoG Bill | 24.7899 | 24.7899 |
| 182-Day GoG Bill | 26.7468 | 26.7468 |
| 364-Day GoG Bill | 27.7880 | 27.7879 |
Source(s): GSS, BoG
The slight rise in the longer-term rate may indicate minor adjustments in market expectations, but overall, the economic environment appears stable and favorable for investment in government securities.
GHANA STOCK EXCHANGE MARKET
This week, the Ghana Stock Exchange has demonstrated favorable performance in important financial indicators. The Ghana Stock Exchange Composite Index (GSE-CI) experienced a 5.72% rise, climbing from 4,086.54 to 4,320.07.
The Financial Stock Index (GSE-FSI) recorded a slight increase by 0.27%, rising from 2,083.94 to 2,089.63. In addition, the market capitalization increased by 2.89%, from GHS 88.877 billion to GHS 91.447 billion. The numbers demonstrate a consistent rising trajectory in the market, indicating favorable investor sentiment and a stable market.
Twelve listed equities were traded in total, resulting in four gainers and no losers. With a 4.76% increase in share price, MTN Ghana closed at GHS 2.20 per share, leading the gainers. GCB Bank (+1.82%), NewGold ETF (+0.51%), and Standard Chartered Bank (+0.25%) were next.
MOST TRADED STOCKS
| Ticker | Traded Volume | Price(GHS) |
|---|---|---|
| MTNGH | 21,517,375 | 2.20 |
| EGL | 4,828,115 | 1.37 |
| EGH | 100,088 | 6.10 |
| IIL | 62,453 | 0.05 |
| CAL | 50,744 | 0.34 |
Source(s): GSE
EGH, IIL, and CAL saw volumes of 100,088, 62,453, and 50,744 shares, respectively, with prices of GHS 6.10, GHS 0.05, and GHS 0.34. These figures highlight MTNGH as the dominant stock in terms of trading volume during the week.
| Country | Index | Level | YTD % |
|---|---|---|---|
| Ghana | GSE-CI | 4,320.07 | ▲ 38.01 |
| Nigeria | NGX ASI | 100,539.40 | ▲ 34.46 |
| Zambia | LuSE ASI | 14,496.11 | ▲ 33.87 |
| Uganda | USE ASI | 1,043.28 | ▲ 19.57 |
| Tanzania | DSE ASI | 2,085.38 | ▲ 19.12 |
Source(s): AFX Kwayisi, African Markets
GHANA FIXED INCOME MARKET VOLUME TRADED
The Ghana Fixed-Income Market experienced notable fluctuations in trading volumes over the past week. Monday started with a modest GHS 235.5 million, increasing by 21.19% from the previous week. Trading volumes peaked on Tuesday and Wednesday at GHS 869.9 million and GHS 865.4 million, respectively, with significant gains of 32.19% and 68.60%.
Source(s): GFIM
Thursday saw a sharp decline to GHS 384.3 million, dropping by 25.58%, while Friday’s volume fell further to GHS 648.9 million, down by 40.82%. Domestic Debt Exchange Program (DDEP) volumes were recorded midweek, peaking at GHS 9.4 million on Thursday.
COMMODITY MARKET
This week saw declines across various commodities. Brent Crude oil prices fell from $85.03 to $82.62 per barrel, marking a decrease of 2.83%. Similarly, WTI Crude oil dropped from $82.21 to $78.64 per barrel, a decline of 4.34%.
| Country | Index | Previous | Wk Change% |
|---|---|---|---|
| Brent Crude USD/Bbl | 82.62 | 85.03 | ▼ 2.83 |
| WTI Crude Oil USD/Bbl | 78.64 | 82.21 | ▼ 4.34 |
| Gold USD/t.oz | 2,395.0 | 2,411.60 | ▼ 0.69 |
| Cocoa USD/T | 7,736.50 | 8,354.10 | ▼ 7.39 |
Source(s): Trading Economics
Gold prices also saw a reduction, decreasing from $2,411.60 to $2,395.00 per troy ounce, which represents a 0.69% drop. The most significant decrease was in cocoa, with prices falling from $8,354.10 to $7,736.50 per metric ton, reflecting a decline of 7.39%.
CURRENCY EXCHANGE
The Ghanaian cedi showed a fluctuating performance against major currencies over the examined period. The exchange rate for USD/GHS climbed slightly from GHS 14.7172 to GHS 14.7811, showing a year-to-date (YTD) gain of 24.39%. Similarly, the EUR/GHS rate jumped from GHS 16.0457 to GHS 16.0938, showing a YTD gain of 23.53%.
Source(s): BoG
Conversely, the GBP/GHS rate saw an insignificant dip from GHS 19.1096 to GHS 19.1009, but still displaying a considerable YTD appreciation of 27.24%. Overall, the cedi has undergone significant depreciation against these major currencies year-to-date, albeit the weekly movements were rather minimal.
OUTLOOK
Fan Milk Limited last dividends payment is expected on August 6. In the meantime, the Ghanaian economy takes center stage as the Bank of Ghana’s Monetary Policy Committee convenes its 119th regular sessions from July 23rd to 26th to examine recent developments. A news conference on July 29th will reveal their decisions. The Minister of Finance and Economic Planning is expected to present the Mid-year budget next week Tuesday to parliament.
