KEY HEADLINES & INSIGHTS
Atlantic Lithium grants performance rights to directors and senior employees. The terms and conditions of the performance rights are by the Atlantic Lithium Limited Rights Plan (“Rights Plan”) and are set out in the Explanatory Memorandum (Ghana Stocks Exchange, 2024)
International accounting and audit firm Deloitte is projecting the economy to end the year with a 4.9% growth rate, with further expansion of 5.1% projected in 2025. (Daily Graphic, 2024)
Ghana Gold Coin Pricing Update: 1 oz Now Selling at GH₵40,245.05, with 0.50 oz at GH₵20,524.59 and 0.25 oz at GH₵10,694.23 as of 27th December 2024. (Bank of Ghana, 2024)
PRIMARY DEBT MARKET ISSUANCE WEEK
The yields on Ghana's Government of Ghana (GoG) Treasury Bills increased across all tenors during the current week. The 91-Day Bill rose by 18.42 basis points to 28.0363%, reflecting stronger investor demand for short-term securities. Similarly, the 182-Day and 364-Day Bills recorded smaller increments of 11.07 basis points and 11.37 basis points, reaching 28.6832% and 30.0706%, respectively. This upward movement in yields indicates an overall tightening in the fixed-income market, potentially driven by increased borrowing requirements or inflationary pressures.
| Security | Current Wk % | Previous Wk % |
|---|---|---|
| 91-Day GoG Bill | 28.0363 | 27.8521 |
| 182-Day GoG Bill | 28.6832 | 28.5725 |
| 364-Day GoG Bill | 30.0706 | 29.9569 |
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₵ 3.19 billion, an upswing compared to GH₵ 4.23 billion posted last week. A total of 5,240 trades were made of which 98.23% were Treasury bills, and 1.43% were attributed to New GoG Notes & Bonds.
Week's Ghana Fixed Income Market Total Volume Traded
Trading activity for the week started at GH₵1.032 billion on December 23, driven primarily by Treasury Bills and Sell/Buy Back trades. Activity slowed on December 24, with volumes declining to GH₵888 million, largely supported by Treasury Bills and New GoG Notes & Bonds. The market remained closed on December 25 and 26 due to the holiday season. However, trading momentum rebounded on December 27, reaching GH₵1.275 billion, with Treasury Bills continuing to dominate activity alongside the usual instruments. This strong finish underscored the resilience of the fixed-income market despite midweek disruptions.
EQUITY MARKET
This week, trading on the local stock exchange booked a bearish performance, with total share volume declining by 99.60% to 1,318,404 shares, down from last week's 330,185,063 shares. The total traded value also decreased by 97.31%, reaching GH₵ 21.11 million, indicating lower-value transactions than last week’s GH₵785.61. Market capitalization experienced an upswing, closing at GH₵ 111.37 billion, up from the previous week's value of GH₵110.70 billion.
Regarding market indices, the GSE Composite Index (GSE-CI) closed at 4,888.53, showing a one-week gain of 1.63%, a one-month gain of 4.14 %, and a strong year-to-date gain of 56.17%.
Week's Equities Top Gainers & Laggards
Moreover, the GSE Financial Stocks Index (GSE-FSI) also inched up to 2,380.79 points, posting a week gain of 0.45%, a month rise of 1.26%, and a year-to-date gain of 25.2%.
EQUITY MARKET MOST TRADED STOCKS
| Ticker | Traded Volume | Price (GHS) |
|---|---|---|
| MTNGH | 936,445 | 2.50 |
| GGBL | 150,000 | 5.50 |
| UNIL | 101,648 | 19.50 |
| CAL | 83,256 | 0.35 |
| GLD | 40,669 | 391.29 |
Source(s): Ghana Stock Exchange
The equity market saw MTN Ghana (MTNGH) dominate trading activity with a significant volume of 936,445 shares, closing at GH₵2.50 per share, reflecting its strong appeal among investors. Guinness Ghana Breweries Limited (GGBL) followed with 150,000 shares traded at GH₵5.50, supported by robust investor interest in consumer staples. Unilever Ghana Limited (UNIL) recorded a traded volume of 101,648 shares at a price of GH₵19.50, highlighting the demand for premium stocks. CAL Bank (CAL) traded 83,256 shares at GH₵0.35, maintaining its position as an affordable banking sector pick. Lastly, NewGold ETF (GLD) recorded 40,669 shares traded at an impressive price of GH₵391.29, reflecting its role as a hedge against market volatility.
COMMODITY MARKET
The commodities market exhibited mixed performance this week, driven by significant fluctuations in gold prices. Following an initial dip early in the week, gold stabilized at $2,615.3 per ounce through mid-week. The market then rebounded on Thursday, reaching $2,633.1 per ounce, before closing the week at $2,620.6 per ounce on Friday.
Brent crude oil futures declined from $72.94 to settle at $73.79 per barrel on Friday, booking a 1.17% weekly gain. Brent is on track for a slight annual loss after months of trading within a narrow range.
Looking ahead, the market faces significant uncertainty, including the risk of a supply glut, geopolitical tensions, and potential shifts in oil policy under the incoming Trump administration.
Source(s): Trading Economics
Cocoa futures declined to close at $9,868.4 from $11,867 per ton last week, booking a weekly loss of 16.84%, as supply concerns. Farmers in Ivory Coast, the world's largest cocoa producer, reported a lack of rainfall across major growing regions last week, warning that prolonged dry conditions could damage bean quality and reduce supplies starting in February.
CURRENCY MARKET
Exchange rates exhibited a slight upward trend compared to the previous week, reflecting a marginal depreciation of the Ghanaian cedi against major currencies. The USD/GHS rate remained steady at 14.70, indicating relative stability against the dollar. However, GBP/GHS edged up from 18.44 to 18.48, and EUR/GHS increased from 15.28 to 15.32, suggesting mild pressure on the cedi from the pound and euro. These movements imply that while the Cedi maintained stability against the dollar, its depreciation against other currencies could signal localized demand shifts or external market influences affecting the exchange rate dynamics.
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
