Prices as at 2-Nov-2023
•Elite Mutual Fund – 1.3810•Financial Independence – 1.4684

GSE market report summary

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WEEKLY FINANCIAL MARKET REPORT AS OF 20TH SEPTEMBER 2024

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KEY HEADLINES

Ghana’s annual GDP growth in Q2 2024 reached 6.9%, its highest level in five years. (Ghana Statistical Service, 2024)

 

Producer price inflation in Ghana accelerated for the sixth straight month to 33.2% in August 2024, up from 29.1% in the prior month. (Ghana Statistical Service, 2024)

The Cocoa Marketing Company (CMC), Ghana Shippers’ Authority (GSA), and 17 shipping lines involved in Ghana’s cocoa trade have successfully concluded negotiations, agreeing to an average 5% increase in the basic freight rate for the 2024/2025 cocoa season. (Ghana Shippers Authority, 2024)

 

GDP GROWTH RATE YEAR-ON-YEAR

After an upwardly revised 4.8% increase in the prior three months, Ghana’s annual economic growth in Q2 2024 reached 6.9%, its highest level in five years. The services sector, which accounts for the lion’s share of economic growth, expanded by 5.8% while the industrial and agricultural sector all had increases in output.

 

The industrial sector had a 9.3% expansion, with mining and quarrying being the main drivers. The gold industry grew by 23.6% for the third quarter in a row. Agricultural output increased by 5.4%, even though the cocoa subsector shrank by 26.2% for the fourth consecutive quarter. Seasonally adjusted quarterly GDP growth in Q2 was 1.6%, up from 1.2% in Q1

 

 

PRIMARY DEBT MARKET ISSUANCE WEEK

The GoG Treasury Bill interest rates had a general upturn in all securities compared to the previous week. This week’s total bids received amounted to GH₵ 3,778.07 million for the 91-day bill, GH₵ 441.43 million for the 182-day bill, and GH₵ 175.04 million for the 364-day bill, with all bids fully accepted.

The range of bid interest rates for the 91-day bill was between 24.8088% and 25.4357%, with a weighted average interest rate of 25.0104%. For the 182-day bill, bid interest rates ranged from 26.7959% to 26.8249%, with a weighted average interest rate of 26.8151%. The 364-day bill had a bid interest rate between 28.0410% and 28.1499%, with a weighted average interest rate of 28.0789%.

 

Security Current Wk %

Previous Wk %

91-Day GoG Bill

25.4357

24.9165

182-Day GoG Bill

26.8151

26.8012

364-Day GoG Bill

28.0789

28.0736

 

 

GHANA FIXED INCOME MARKET VOLUME TRADED

Overall, the Ghana Fixed Income Market (GFIM) had a decline of 10.55% from the previous week, with a total traded volume of GH₵ 3.73 billion at the end of the week. This week posted 12,710 total number of trades, a 5.19% dip in activity compared to last week. With a market share of 98.86%, Treasury bills outpaced New GoG Notes & Bonds’ 0.88%.

 

Between September 16 and September 20, 2024, trading volumes varied among securities, with September 16 witnessing GH₵ 759 million in trades, mostly driven by Treasury bills. On September 17, trade volume reduced to GH₵ 641 million, again driven by heightened activity in Treasury notes. The upswing regained marginally on September 18, with volumes climbing to GH₵ 685 billion, mostly owing to Treasury bill trading.

 

Week’s Ghana Fixed Income Market Total Volume Traded

 

However, the market experienced a steep dip on September 19, with volumes decreasing to GH₵ 455 million, headed by New GoG Bonds & Notes. By September 20, the market finished with GH₵ 1,204 million in trading, including noteworthy contributions from Treasury bills, Sell/Buy Back trades, and New GoG Notes & Bonds.

 

 

EQUITY MARKET

Trading activity on the local bourse surged this week, with a volume of 6,036,528 shares exchanged, marking an 89.69% increase from the previous week. The total traded value also saw a significant rise of 102.54%, reaching GH₵ 14.38 million. Despite this heightened trading activity, market capitalization recorded a modest gain of 0.32%, closing at GH₵ 92.7 billion.

Week’s Equities Top Gainers

In terms of market indices, the GSE Composite Index (GSE-CI) closed at 4,381.86, showing a weekly gain of 0.20% and a monthly gain of 0.65%, but maintaining a strong year-to-date gain of 39.99%. Meanwhile, the GSE Financial Stocks Index (GSE-FSI) also increased to reach 2,153.83 points, posting a slight weekly increase of 0.77%, a monthly rise of 1.69%, and a year-to-date gain of 13.27%.

EQUITY MARKET MOST TRADED STOCKS

Ticker

Traded Volume

Price (GHS)

MTNGH

5,661,286

2.20

GCB

187,253

6.00

SIC

69,158

0.25

CAL

53,459

0.31

FML

29,995

3.50

Source(s): Ghana Stock Exchange

 

In the equity market, MTNGH was the most traded stock with a volume of 5,661,286 shares at a price of GHS 2.20. GCB followed with 187,253 shares traded at GHS 6.00. SIC traded 69,158 shares at GHS 0.25, while CAL saw 53,459 shares traded at GHS 0.31. Lastly, FML traded 29,995 shares at a price of GHS 3.50.


TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Country

Index

Level

YTD %

Zambia

LuSE ASI

15,978.01

▲47.56

Ghana

GSE-CI

4,381.86

▲39.99

Nigeria

NGSE ASI

98,386.60

▲31.58

Malawi

MSE ASI

143,431.32

▲29.27

Egypt

EGX 30

31,002.54

▲24.62

 

COMMODITY MARKET

The commodities market experienced a broad decline in performance compared to the previous week. From September 16th to 20th, 2024, the price of gold underwent oscillations as it responded to a mix of global economic data and geopolitical tensions. Gold prices marginally climbed from US$ 2,578.48 to US$ 2,621.60 per troy ounce. Wednesday, the Federal Reserve announced its first interest rate cut in four years, dropping the

Source(s): Trading Economics

rate by 50 basis points and projected that the benchmark rate could drop by an additional half percentage point by year-end.

 

Brent crude prices slightly increased from US$ 71.61 to US$ 74.49 per barrel. On the supply side, geopolitical tensions added to market uncertainty as Hezbollah fired over 100 rockets into northern Israel, including areas near Haifa, raising fears of a broader conflict in the key oil-producing region. Additionally, Cocoa prices were upturned, slightly increasing from US$ 7,669.60 to US$ 7,679.40 per ton.


CURRENCY MARKET

The Ghanaian cedi (GHS) continued to endure adverse pressure against major international currencies. The US dollar (USD), British pound (GBP), and euro (EUR) all increased relative to the cedi throughout the period under study.

 

Specifically, the USD/GHS exchange rate jumped marginally from GH₵ 15.64 to GH₵ 15.76, a 5-year high since 2020. Similarly, the GBP/GHS rate went from GH₵ 20.56 to GH₵ 20.99, and the EUR/GHS rate rose from GH₵ 17.34 to GH₵ 17.60. These changes show that the cedi is losing value compared to these main currencies.

 

Source(s): Bank of Ghana

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WEEKLY FINANCIAL MARKET REPORT AS OF 13TH SEPTEMBER 2024

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KEY INSIGHTS

Ghana’s annual inflation rate unexpectedly fell to a 29-month low in August, increasing the chance of an interest-rate cut when policymakers announce their decision on Sept. 30.

 

The Ghana Cocoa Board increased the price that pays farmers for cocoa by 45%, to $3,063 per ton, for the 2024/25 season that started this month. This boosts cocoa’s carryover support. 

 

Ghana Fixed Income Market’s total volume traded reached GH₵ 4.17 billion, a 31% rebounded gain compared to the previous week.

 

INFLATION

August 2024 saw an improvement in Ghana’s annual consumer inflation for the fifth consecutive month, dropping from 20.9% in the previous month to a nearly 2½-year low of 20.4%. On a monthly basis, consumer prices fell by 0.7% in August, marking the first decrease in a year, after a 2.4% rise in the prior month.

 

Despite a recent slowdown, inflation is still much higher than the central bank’s target range of 6% to 10%. The cedi’s relative stability and a further decrease in food inflation—which fell to 19.1% from 21.5% in July—caused by deflation in categories including milk, oils and fats, fruits, and nuts, were mostly responsible for the slowdown. Meanwhile, non-food inflation increased (to 21.5% from 20.5%).

 

PRIMARY DEBT MARKET ISSUANCE WEEK

The GoG Treasury Bill interest rates had a general upturn in all securities compared to the previous week. This week’s total bids received amounted to GH₵ 4,689.56 million for the 91-day bill, GH₵ 594.37 million for the 182-day bill, and GH₵ 245.74 million for the 364-day bill, with all bids fully accepted.

The range of bid interest rates for the 91-day bill was between 24.7976% and 25.000%, with a weighted average interest rate of 24.9165%. For the 182-day bill, bid interest rates ranged from 26.7959% to 26.8217 %, with a weighted average interest rate of 26.8012%. The 364-day bill had a bid interest rate between 28.041% and 28.123%, with a weighted average interest rate of 28.0736%.

Security Current Wk %

Previous Wk %

91-Day GoG Bill

24.9165

24.9013

182-Day GoG Bill

26.8012

26.7899

364-Day GoG Bill

28.0736

27.9258

Source(s): Bank of Ghana

 

Week’s Ghana Fixed Income Market Total Volume Traded

 

However, the market experienced a sharp drop on September 12, with volumes falling to GH₵ 655 million, still led by Treasury bills. By September 13, the market closed with GH₵ 624 million in trades, with notable contributions from Treasury bills, Sell/Buy Back trades, and New GoG Notes & Bonds.

 

EQUITY MARKET

The local bourse’s trading activity this week was 23.30% lower than last week, with 3,182,208 shares exchanged. The total traded value was 61.43% lower, amounting to GH₵ 7.10 million. However, the market capitalization reached GH₵ 92.4 billion, a 0.65% gain compared to last week.

Week’s Equities Top Gainers & Laggard

In terms of market indices, the GSE Composite Index (GSE-CI) closed at 4,373.03, showing a weekly gain of 0.302% and a monthly drop of 1.52%, but maintaining a strong year-to-date gain of 39.7%. Meanwhile, the GSE Financial Stocks Index (GSE-FSI) also increased to reach 2,137.31 points, posting a slight weekly increase of 0.89%, a monthly rise of 0.68%, and a year-to-date gain of 12.4%.

 

EQUITY MARKET MOST TRADED STOCKS

Ticker

Traded Volume

Price (GHS)

MTNGH

2,688,678

2.20

ACCESS

135,933

4.80

CAL

112,276

0.31

SIC

54,340

0.25

RBGH

40,216

0.60

Source(s): Ghana Stock Exchange

 

TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Country

Index

Level

YTD %

Zambia

LuSE ASI

15,900.02

▲46.84

Ghana

GSE-CI

4,373.03

▲39.70

Nigeria

NGSE ASI

97,456.62

▲30.34

Malawi

MSE ASI

143,372.79

▲29.24

Côte d’Ivoire

BRVM-CI

1,058.42

▲21.31

 

COMMODITY MARKET

The commodities market experienced a general dip in performance compared to the previous week. A record high of US$ 2,578.48 per ounce was reached for gold on Friday as bond rates fell and the currency weakened. Fresh economic data has boosted expectations of a more aggressive response from the Federal Reserve in the form of interest rate cuts next week, which led to this increase.

Source(s): Trading Economics

Brent crude prices slightly increased from US$ 71.06 to US$ 71.61 per barrel. The IEA warned of slowing global oil demand growth, particularly driven by China’s weakening economy, and projected a potential supply surplus in 2024, even with continued OPEC+ production cuts.

 

Cocoa prices were downturned, decreasing from US$ 9236.14 to US$ 7,669.60 per ton. Cocoa also has carryover support from Wednesday when the Ghana government raised the price that its cocoa regulator pays farmers for cocoa by 45% to $3,063 per ton for the 2024/25 season that began this month. 

 

 

CURRENCY MARKET

The Ghanaian cedi (GHS) continued to endure adverse pressure against major international currencies. The US dollar (USD), British pound (GBP), and euro (EUR) all increased relative to the cedi throughout the period under study.

 

Specifically, the USD/GHS exchange rate jumped marginally from GH₵ 15.35 to GH₵ 15.64, a 5-year high since 2020. Similarly, the GBP/GHS rate went from GH₵ 20.15 to GH₵ 20.56, and the EUR/GHS rate rose from GH₵ 17.01 to GH₵ 17.34. These changes show that the cedi is losing value compared to these main currencies.

Source(s): Bank of Ghana

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WEEKLY FINANCIAL MARKET REPORT AS OF 30TH AUGUST 2024

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KEY HEADLINES

The Ghana Stock Exchange Composite Index (GSE-CI) has seen an impressive 39.28% gain year-to-date.

 

Scancom PLC (MTNGH) records a 1,228,630 in shares traded, more than 300% of all other traded shares.

 

Total volume traded reached GH₵ 4.13 billion, with Treasury bills dominating the trades (98.66%).

 

OPEC (Organization of the Petroleum Exporting Countries) plans to increase production next quarter. (Yahoo Finance, 2024)

 

PRIMARY DEBT MARKET ISSUANCE WEEK

The GoG Treasury Bill interest rates had a general upturn in all securities compared to the previous week. This week’s total bids received amounted to GH₵ ¢ 2,532.03 million for the 91-day bill, GH₵ 1,357.13million for the 182-day bill, and GH₵ 205.23 million for the 364-day bill, with all bids fully accepted.

The range of bid rates for the 91-day bill was between 23.420% and 23.4319%, with a weighted average interest rate of 24.8896%. For the 182-day bill, bid rates ranged from 23.6200% to 23.6254%, with a weighted average interest rate of 26.7890%. The 364-day bill had a bid rate 21.8200%, with a weighted average interest rate of 27.9100%.

Security Current Wk %

Previous Wk %

91-Day GoG Bill

24.8896

24.7895

182-Day GoG Bill

26.7890

26.6854

364-Day GoG Bill

27.9100

27.8135

Source(s): Bank of Ghana

 

 

The Ghana Fixed Income Market closed the week with a total volume traded of GH₵ 4.13 billion. A total of 17,827 trades were made of which 98.66% were Treasury bills, and 1.05% were New GoG Notes & Bonds.

 

The trading activity on the Ghana Fixed Income Market (GFIM) from August 26 to August 30, 2024, shows fluctuating volumes across different security types. Trading began with GH₵ 664 million on August 26, with majority attributed to Treasury bills and Corporate Bonds. The volume then inched up to GH₵ 925 million on August 27, driven mainly by Sell/Buy Back Trades

 

August 28 saw a downturn with GH₵ 752 million in volume, largely from Treasury Bills.

 

The peak was on August 29, where the volume saw an uptick to GH₵ 962 million, again led by Treasury Bills, and ended at GH₵ 826 million on August 30, with significant contributions from Treasury Bills and Sell/ Buy Back Trades.

 

 

EQUITY MARKET

This week’s trading on the local bourse concluded with 1,155,073 shares exchanged, equivalent to GH₵ 3.15 million, bringing the market capitalisation to GH₵ 92 billion.

Week’s Equities Top Gainers

 

Regarding market indices, the GSE Composite Index (GSE-CI) settled at 4,359.85, reflecting a weekly gain of 0.15%, a monthly loss of 5.29%, but an overall year-to-date gain of 39.28%. Meanwhile, the GSE Financial Stocks Index (GSE-FSI) maintained it value at 2,118.06 points, recording a monthly gain of 0.77% and a year-to-date increase gain of 11.38%.

 

 

EQUITY MARKET MOST TRADED STOCKS

Ticker

Traded Volume

Price (GHS)

MTNGH

1,228,630

2.20

GLD

100,977

382.60

SIC

44,426

0.25

ALLGH

40,700

6.15

CAL

37,666

0.31

Source(s): Ghana Stock Exchange

The recent trading data from the Ghana Stock Exchange highlights Scancom PLC (MTNGH) as the most actively traded stock, with over 1.2 million shares exchanged at GHS 2.20, reflecting strong investor confidence in the telecom giant. NewGold ETF (GLD), despite a lower volume of 100,977 shares, stands out with its high price of GHS 382.60, attracting those seeking a hedge against economic uncertainty.

 

SIC Insurance (SIC), trading at GHS 0.25, shows moderate interest in the insurance sector, possibly as a speculative play. Atlantic Lithium Ghana (ALLGH) traded 40,700 shares at GHS 6.15, suggesting market optimism about its prospects in the mining sector. CalBank (CAL) saw 37,666 shares traded at GHS 0.31, reflecting steady interest in the banking sector, with investors potentially viewing it as an affordable investment with growth potential. Overall, the diverse trading activity underscores a mix of growth opportunities and defensive plays in Ghana’s equity market.

 

 

COMMODITY MARKET

The commodities market experienced a general dip in performance compared to previous week. Gold prices inconsequentially dipped, decreasing from US$ 2,509.63 to US$ 2,503.10 per troy ounce., maintaining proximity to its record highs as dovish signals from the Federal Reserve bolstered demand for non-yielding bullion assets.

 

Brent crude prices softened, sliding from US$ 79.02 to US$ 76.93 per barrel. One significant driver of the price decrease is increased oil production by non-OPEC+ countries. These nations, including the United States, have ramped up their oil output. This surge in non-OPEC+ production has partially offset the supply curbs implemented by OPEC+ (the alliance of OPEC members and some non-OPEC producers)

Source(s): Trading Economics

 

 

Cocoa prices took a downturn, decreasing from US$ 9,858.0 to US$ 9,669.0 per ton, still nearing their highest levels since mid-June. This is due to a global supply shortage, investor speculation, and the impact on chocolate brands. The shortage stems from climate-induced crop damage in West Africa, while investor behavior has further driven prices upward.

 

 

 

CURRENCY MARKET

The exchange rates for the Ghanaian cedi (GHS) against major currencies exhibited mixed movements. The USD/GHS slightly increase from GH₵ 15.13 to GH₵ 15.19. Both the British pound (GBP) and the euro (EUR) slightly plummeted against the cedi, with GBP/GHS rising from GH₵ 19.97 to GH₵ 19.93, and EUR/GHS decreasing from GH₵ 16.91 to GH₵ 16.78.

Source(s): Bank of Ghana

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WEEKLY FINANCIAL MARKET REPORT AS OF 23RD AUGUST 2024

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KEY HEADLINES

Gold records an all-time upturn value of $2,509.6 per troy ounce, on Monday, August 20.

 

Total shares traded on the Ghana Stock Exchange (GSE) plummeted by 88.85%, driven primarily by a sharp 90.54% contraction in Scancom PLC’s (MTNGH) trading volume compared to the previous week.

 

 

PRIMARY DEBT MARKET ISSUANCE WEEK

Interest rates on Government of Ghana Treasury Bills had a marginal downturn across all securities compared to the previous week. At the week’s auction, total bids received amounted to GH₵ 3,725.86 million for the 91-Day bill, GH₵ 1,251.99 million for the 182-Day bill, and GH₵ 252.74 million for the 364-Day bill, with all bids fully accepted.

Security

Range of Bid Rates

(%)

 Current Wk %

Previous Wk %
91-Day GoG Bill

23.3400 -23.3433

 24.7895

24.8435
182-Day GoG Bill

21.7610 – 23.5731

 26.6854

26.7469
364-Day GoG Bill

21.7800 – 21.7883

 27.8135

27.8509

Source(s): Bank of Ghana

 

 

GHANA FIXED INCOME MARKET VOLUME TRADED

The Ghana Fixed Income Market (GFIM) closed the week with a total volume of GH₵ 4.69 billion from 6,137 trades. Treasury bills trades dominated the week’s trading activities by 96.42% and 3.44% for New GoG Notes & Bonds.

Week’s Ghana Fixed Income Market Total Volume Traded

The volume slightly took a downturn to GH₵ 972 million on August 22, again led by Treasury Bills, and ended at GH₵ 1,265 million on August 23, with significant contributions from Treasury Bills and Sell/ Buy Back Trades. Treasury Bills consistently dominated trading volumes throughout the week.

 

 

EQUITY MARKET

The week’s trading on the local bourse concluded with 1,993,860 shares exchanged, equivalent to GH₵ 6.82 million, bringing the market capitalisation to GH₵ 91.85 billion.

 

NewGold Issuer (GLD) emerged as the lead gainer, recording a 2.66% (from GH₵ 366.24 to GH₵ 376.00) uptick. The Trust Bank Limited (TBL) followed with a 1.22% gain, while TotalEnergies PLC (TOTAL) and GCB Bank PLC (GCB) posted modest gains of 0.24% and 0.17%, respectively.

 

On the downside, Scancom PLC (MTNGH) experienced a decline of 3.08% (from GH₵ 2.27 to GH₵ 2.20), but the most significant drop was seen in CalBank PLC (CAL), which dipped by 8.82% (from GH₵ 0.34 to GH₵ 0.31), indicating potential concerns among investors.

 

Week’s Equities Top Gainers & Laggards

Regarding market indices, the GSE Composite Index (GSE-CI) settled at 4,353.38, reflecting a weekly contraction of 1.96%, a monthly loss of 2.5%, but an overall year-to-date gain of 39.08%. The GSE Financial Stocks Index (GSE-FSI) ended at 2,118.06 points, making it a week loss of 0.22%, recording a monthly gain of 1.87% and a year-to-date return of 11.38%.

 

 

EQUITY MARKET MOST TRADED STOCKS
Ticker Traded Volume Price (GHS)
MTNGH 1,610,300 2.20
SIC 260,285 0.25
CAL 35,915 0.31
ALLGH 25,300 6.00
ETI 15,975 0.15

Source(s): Ghana Stock Exchange

 

 

 

COMMODITY MARKET

The commodities market experienced a divergent performance this week. Gold prices edged higher, increasing from US$ 2,507.8 to US$ 2,509.63 per troy ounce. The precious metal found support during afternoon trading, recovering to above $2,500 per ounce by Friday, maintaining proximity to its record highs as dovish signals from the Federal Reserve bolstered demand for non-yielding bullion assets.

 

In contrast, Brent crude prices softened, sliding from US$ 79.68 to US$ 79.02 per barrel. The decline in oil prices, exceeding 0.5% for the week, was driven by mounting concerns over weakening energy demand. This sentiment was reinforced by a slew of data indicating reduced fuel consumption, including the latest S&P PMI, which revealed a sharper-than-expected contraction in U.S. manufacturing activity in August.

 

Additionally, indicators of diminished fuel demand from major energy consumers, such as contractionary PMIs, declining industrial output, and ship-tracking data showing reduced fuel shipments to China in July, further pressured prices.

 

Source(s): Trading Economics

 

Cocoa prices surged, rising from US$ 8,848.40 to US$ 9,858.08 per ton, nearing their highest levels since mid-June fueled by ongoing concerns over constrained supply. Market apprehensions are centered on the potential impact of dry weather conditions in major West African-producing regions, which could significantly reduce global cocoa production.

 

 

CURRENCY MARKET

The exchange rates for the Ghanaian cedi (GHS) against major currencies exhibited mixed movements compared to the previous week. The USD/GHS rate held steady at GH₵ 15.13, showing no change. In contrast, both the British pound (GBP) and the euro (EUR) appreciated against the cedi, with GBP/GHS rising from GH₵ 19.53 to GH₵ 19.97, and EUR/GHS increasing from GH₵ 16.65 to GH₵ 16.91.

 

Source(s): Bank of Ghana

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WEEKLY FINANCIAL MARKET REPORT AS OF 16TH AUGUST 2024

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KEY HEADLINES

Government of Ghana misses Treasury Bill auction target for five consecutive weeks.

With a target value of $20 million, the Bulk Oil Distribution Companies (BDCs) Forward Rates auction ended with a rate of GHS 15.73. (Bank of Ghana, 2024).

Ghana Government Advances Transparency and Environmental Integrity in Clean Stove Carbon Finance. (Ghana Carbon Market Office, 2024)

 

 

PRIMARY DEBT MARKET ISSUANCE WEEK

The Government of Ghana’s Treasury bills displayed minimal fluctuations in their yields over the recent period. The 91-day GoG bill showed a slight increase from 24.8251% to 24.8435%, while the 182-day GoG bill similarly increased from 26.7642% to 26.7469%. In contrast, the 364-day GoG bill experienced a marginal decline from 27.8575% to 27.8509%.

Security Current % Previous %
91-Day GoG Bill

24.8435

24.8251
182-Day GoG Bill

26.7469

26.7642
364-Day GoG Bill

27.8509

27.8575

Source(s): Bank of Ghana

These minor fluctuations imply that the short-term interest rate environment is relatively stable, which means that investors are still inclined to maintain an interest in the government’s short-term debt instruments. Government has targeted an amount of GHS 5.3 billion through the issuance of the 91-day, 182-day, and 364-day Treasury Bills for the next auction this coming week.

 

For the tender conducted on July 12, government missed its target of GH¢4.72 billion as total bids amounted to GH¢4.4 billion. For the auction conducted on July 19, government again missed its target of GH¢5.3 billion against a total tender of GH¢3.87 billion. The situation was no different for the auction conducted on July 26, as government raised GH¢4.06 billion against a target of GH¢4.77 billion. For the auction conducted on August 2, the targeted amount fell short by over GH¢560 million as government raised GH¢3.80 billion against a target of GH¢4.36 billion. In the previous auction week on August 9, the government again missed its target of GH¢6.55 billion when it raised only GH¢5.30 billion, a shortfall of over GH¢1 million.

 

GHANA FIXED INCOME MARKET VOLUME TRADED

The Ghana Fixed Income Market closed the week with a total volume traded of GHS 4.96 billion. A total of 6,158 trades were made of which 97.92% were Treasury bills, and 1.66% were New GoG Notes & Bonds.

On August 12, the total traded volume was GHS 734 million, with GHS 307 million in Treasury Bills and GHS 422 million in Sell/Buy Back Trades (GOG Notes & Bonds), making them the dominant instruments for the day. The market saw significant movement on August 13, with the total volume increasing to GHS 963 million. The largest contributions came from Treasury Bills at GHS 603 million and Sell/ Buy Back Trades, GHS 337 million.

Week’s Ghana Fixed Income Market Total Volume Traded

The peak trading activity occurred on August 15, with a total volume of GHS 1,156 million. This day saw Treasury Bills leading the market again with GHS 621 million in volume, followed by Sell/Buy Back Trades at GHS 306 million and New GOG bonds at GHS 229 million. On August 16, the market slightly declined but remained robust with a total volume of GHS 1,074 million. Treasury Bills continued to dominate at GHS 600 million, while New GOG bonds contributed GHS 474 million in volume.

 

Throughout the week, Treasury Bills consistently held the largest share of the total volume traded, indicating strong investor appetite for the short-term government securities. The interest in the Sell/Buy Back Trades and New GOG bonds also suggests a diversification of investment strategies among market participants.

 

EQUITY MARKET

This week’s trading on the local bourse concluded with a total of 17,883,651 shares exchanging hands, valued at GHS 113,161,405.85, lifting the market capitalisation to GHS 92.78 billion.

The stock market saw notable movements, with Unilever Ghana PLC (UNIL) leading the charge. UNIL’s share price increased by GHS 1.23, closing at GHS 16.00, marking a significant gain. Followed by, Guinness Ghana Breweries PLC (GGBL) increased by GHS 0.46, closing at GHS 5.16. On the other hand, NewGold (GLD) was the week’s underperformer, with its share price falling by GHS 1.56 to end the week at GHS 366.24.

Regarding market indices, the GSE Composite Index (GSE-CI) settled at 4,440.53, reflecting a weekly contraction of 0.006%, though it remains up 5.83% for the month and an impressive 41.86% year-to-date. Meanwhile, the GSE Financial Stocks Index (GSE-FSI) ended at 2,122.83 points, recording a monthly gain of 1.87% and a year-to-date return of 11.64%.

 

EQUITY MARKET MOST TRADED STOCKS

Ticker

Traded Volume

Price (GHS)
MTNGH 17,024,118 2.27
FML 315,163 3.50
GGBL 103,456 5.16
EGL 79,859 1.65
CAL 55,625 0.34

Source(s): Ghana Stock Exchange

 

COMMODITY MARKET

The commodities market exhibited mixed performance this week. Gold prices rose from US$ 2,430.6 to US$ 2,507.8 per troy ounce. Despite a broad consensus that the US Federal Reserve will implement 100 basis points in rate cuts over their three remaining meetings this year, strong retail sales data has led investors to scale back expectations for a more aggressive 50 basis point cut next month.

Brent crude prices witnessed a slight increase, moving from US$ 79.66 to US$ 79.68 per barrel, amid reports that Qatar urged Iran to ease tensions with Israel during ongoing Gaza cease-fire negotiations. The dip in oil prices from a quarterly high of US$ 87.20 per barrel on July 3 also reflects broader concerns about declining demand from China, the world’s largest oil importer. Recent Chinese economic data highlighted slowing growth, falling home prices, and rising unemployment, which prompted Chinese refineries to cut crude processing rates.

Source(s): Trading Economics

Similarly, cocoa prices declined from US$ 9,087.70 to US$ 8,848.40 per ton, staying near their highest levels since mid-June. Dealers pointed out that inventories remain tight due to a record deficit in the 2023/24 season. However, they expect a potential global surplus in the 2024/25 season, driven by a more favourable crop outlook in West Africa.

 

CURRENCY MARKET

The Ghana cedi continued its depreciation against major foreign currencies, with the exchange rates showing an upward trend; fueling higher import costs and inflationary pressures. The USD/GHS rate increased from GHS 15.09 to GHS 15.13, the GBP/GHS rate rose from GHS 19.26 to GHS 19.53, and the EUR/GHS rate also climbed from GHS 16.48 to GHS 16.65.

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

 

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WEEKLY FINANCIAL MARKET REPORT AS OF 9TH AUGUST 2024

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KEY HEADLINES

Bank of Ghana imposed sanctions on forty-seven (47) individuals and two-hundred and forty-five (245) business entities for persistent issuance of dub cheques (Bank of Ghana, 2024)

 

The FinTech Sector reports a 19.1% uptick in total transaction volume and a 37.3% uptick in total transaction value in Q2 compared to Q1. (Bank of Ghana, 2024)

 

Government plans to issue Treasury bills amounting to GH¢78,441.64 million for the period, July to September 2024 of which GH¢53,807.67 million is to rollover short-term maturities and the remaining GH¢24,633.97 million as fresh issuance to meet the Government’s financing requirements. (Bank of Ghana, 2024)

 

PRIMARY DEBT MARKET ISSUANCE WEEK

The Government of Ghana’s Treasury bills displayed minimal fluctuations in their yields over the recent period. The 91-day GoG bill showed a slight increase from 24.8246% to 24.8251%, while the 182-day GoG bill similarly increased from 26.7641% to 26.7642%. In contrast, the 364-day GoG bill experienced a marginal decline from 27.8578% to 27.8575%.

Security Current % Previous %

91-Day GoG Bill

24.8251

24.8246

182-Day GoG Bill

26.7642

26.7641

364-Day GoG Bill

27.8575

27.8578

Source(s): Bank of Ghana

These insignificant shifts point to a rather steady short-term interest rate environment, suggesting that investors are still likely to retain interest in the government’s short-term debt instruments. The Government has set a target amount of GHS 4,968.00 million from the issue of the 91-Day, 182-Day, and 364-Day Treasury Bills for the next auction this coming week.

 

GHANA FIXED INCOME MARKET VOLUME TRADED

The Ghana Fixed Income Market concluded with a total volume traded of GHS 2.28 billion. A total of 5,949 trades were made of which 99.7% were Treasury bills, and 0.18% were New GoG Notes & Bonds.

 

On the 6th of August, the total market volume reached GHS 667 million, with Corporate Bonds contributing GHS 370 million and New GoG Notes GHS 159 million. The market experienced a slight

 

decline on the 7th to GHS 595 million, with Treasury Bills dominating the trades at GHS 516 million. On the 8th, the volume decreased further to GHS 414 million, where Treasury Bills again played a significant role, accounting for GHS 409 million of the total. However, by the 9th, the market volume recovered to GHS 601 million, with a notable balance between Treasury Bills (GHS 311 million) and Corporate Bonds (GHS 290 million).

 

EQUITY MARKET

This week’s trading on the local bourse concluded with a total volume of 578,885 shares exchanged, amounting to GHS 12,931,017.82, bringing the market capitalization to GHS 92.78 billion.

 

The stock market saw notable movements, with New Gold Issuer (GLD) leading the charge. GLD’s share price surged by GHS 5.30, closing at GHS 367.80, marking a significant gain. On the other hand, Scancom PLC (MTNGH) was the week’s underperformer, with its share price falling by GHS 0.12 to end at GHS 2.29.

 

Regarding market indices, the GSE Composite Index (GSE-CI) declined by 145.50 points to settle at 4,440.78, reflecting a weekly contraction of 3.17%, though it remains up 12.17% for the month and an impressive 41.87% year-to-date. Meanwhile, the GSE Financial Stocks Index (GSE-FSI) held steady at 2,115.52 points, recording a monthly gain of 1.33% and a year-to-date increase of 11.25%.

 

EQUITY MARKET MOST TRADED STOCKS

Ticker

Traded Volume

Price (GHS)

MTNGH

278,190

2.29

CAL

78,519

0.34

RBGH

70,977

0.52

GLD

32,560

367.80

ETI

25,502

0.15

Source(s): Ghana Stock Exchange

 

 

TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Country

Index

Level

YTD %

Ghana

GSE-CI

4,440.78

▲41.87

Zambia

LuSE ASI

14,378.52

▲32.79

Nigeria

NGSE ASI

98,592.12

▲31.85

Malawi

MSE ASI

134,526.12

▲21.25

Tanzania

DSE ASI

2,061.04

▲17.73

Source(s): AFX Kwayisi, African Markets

 

 

COMMODITY MARKET

The commodities market has shown varied performance. Gold prices slightly declined to US$ 2,430.6 from US$ 2,442.8 per troy ounce. Gold continues to gain support amid ongoing geopolitical uncertainties and the anticipation of a potential Federal Reserve rate cut. Additionally, while expectations for a Fed rate cut in September persist, investor sentiment has become more cautious. The market is now split on whether the Federal Reserve will opt for a 50 basis point reduction or a more conservative 25 basis point cut.

 

The price of Brent crude slightly increased from US$ 76.81 to US$ 79.66 per barrel of crude oil. This uptick was driven by positive economic data and indications from Federal Reserve officials that they might cut interest rates as soon as September, which alleviated some concerns about demand

 

Similarly, Cocoa prices increased from US$ 7,533.30 to US$ 9,087.70 per ton, the highest over seven weeks. In the short-term concerns persisted that increased rain in West Africa is making cocoa plantations more susceptible to disease and forcing farmers to buy expensive chemicals, allowing diseases such as Black Pod and Swollen shoot to resurface.

Source(s): Trading Economics

 

 

CURRENCY MARKET

The Ghanaian Cedi (GHS) has shown notable depreciation against major foreign currencies year-to-date (YTD). The exchange rate for USD/GHS has risen from GHS 14.97 (previous week) to GHS 15.09, with a 27.02% gain to the dollar YTD. Similarly, GBP/GHS increased from GHS 19.14 (previous week) to GHS 19.26, reflecting a 28.31% increase compared to the beginning of the year. The EUR/GHS exchange rate also climbed from GHS 16.33 (previous week) to GHS 16.48, indicating a 26.48% year-to-date gain for shared currency.

 

Source(s): Bank of Ghana

 

 

FINTECH SECTOR Q2 OVERVIEW

In Q2 2024, there were significant shifts in transaction values compared to Q1 2024, indicating growing consumer behaviour in digital financial services (Bank of Ghana, 2024). Agent-to-agent transactions underwent the most significant growth, rising by 33% from GHS 171.19 billion to GHS 228.03 billion, underscoring an increased reliance on peer-to-peer transfers. Third-party transactions also grew by 7%, reaching GHS 103.42 billion, suggesting expanded use of intermediaries or service providers. Bank-to-wallet (B2W) transactions increased by 11%, indicating a stronger preference for moving funds from traditional banks to digital wallets, which aligns with the broader trend towards digital financial inclusion.

 

Cash-out and cash-in transactions both saw a 14% increase, reflecting higher liquidity needs or greater consumer engagement within the mobile money ecosystem. However, Wallet-to-Bank (W2B) transactions decreased by 14%, declining from GHS 39.19 billion to GHS 33.88 billion, which may point to a preference for retaining funds within the digital wallet ecosystem rather than transferring them back to traditional banks.

 

These trends indicate that, despite the increasing popularity of digital financial services, particularly in peer-to-peer and bank-to-wallet transactions, there are segments of the market where consumer confidence or the perceived value of traditional banking services may be declining. This emphasizes the increasing significance of FinTech in the financial sector and suggests that there are both opportunities and challenges for companies that operate in this sector.

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WEEKLY FINANCIAL MARKET REPORT AS OF 2ND AUGUST 2024

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KEY HEADLINES

Bank of Ghana Launches Centralized Foreign Exchange Trading Platform to Enhance Financial Integrity and Oversight. (Bank of Ghana, 2024)

 

The Bank of Ghana has announced the results of the recent Forex Forward Rates Auction for Bulk Oil Distribution Companies (BDCs). The auction concluded with a forward rate of GHS15.5647 per US Dollar, successfully meeting the target amount of US$20 million. (BDC Forex Forward Rates, 2024)

 

Ghana’s Voluntary Carbon Market has retired 7,902.62 kilotonnes (kt) of carbon credits through household projects and 704 kt through Natural and Biological Systems projects as of May 30, 2024 (West African Climate Alliance, 2024)

 

MTN Ghana announces interim dividend amid strong half-year performance for 2024. (Ghana Stock Exchange, 2024)

 

PRIMARY DEBT MARKET ISSUANCE WEEK

In the latest update, the yields on Government of Ghana (GoG) Treasury Bills exhibited modest upticks across all tenors. The yield on the 91-Day GoG Bill increased slightly from 24.7880% to 24.8246%. Similarly, the 182-Day GoG Bill yield edged up from 26.7414% to 26.7641%. The 364-Day GoG Bill also saw a marginal rise from 27.8563% to 27.8578%.

 

Security Current % Previous %
91-Day GoG Bill 24.8246 24.7880
182-Day GoG Bill 26.7641 26.7414
364-Day GoG Bill 27.8578 27.8563

Source(s): Bank of Ghana

For the upcoming auction for the week, Government has set a target amount of GH¢ 6,557.42 million from the issuance of the 91-Day, 182-Day, and 364-Day Treasury Bills.

 

GHANA FIXED INCOME MARKET VOLUME TRADED

Compared to the previous week, the total volume traded for the week recorded mixed outturns. The first trading day witnessed a substantial increase, with a volume of GHS 967,926,836, up 70.49%, alongside a significant DDEP trading volume of GHS 406,089,217. However, Tuesday experienced a sharp decline, with the volume traded falling to GHS 398,822,588, a 39.37% decrease, and no recorded DDEP trades.

 

The market rebounded on Wednesday recording the highest volume for the week at GHS 1,041,016,357, up 30.04%, as against the prior week. Thursday’s trading volume reached GHS 440,978,769, a 37.35% increase, with a modest DDEP volume of GHS 1,430,000.

 

 

The week’s trading activities concluded with Friday’s volume at GHS 546,443,699, down 6.33%. However, the DDEP volumes surged to GHS 298,192,254. Overall, the week was marked by high volatility, with significant daily variations in total volume traded compared to the previous week.

 

 

EQUITY MARKET

The week’s trading activities on the local bourse ended with a total traded volume of 735,157 shares valued at GHS 1,944,468.33, lifting the market capitalization to GHS 94.36 billion.

 

The stock market experienced substantial gains, with GCB Bank PLC (GCB) and Scancom PLC (MTNGH) dominating the trading activities for the week. GCB’s share price rose by GHS 0.30 to close at a price of GHS 5.90. In a similar vein, MTNGH witnessed a surge in its share price by GHS 0.07, closing the week at GHS 2.41 per share. No laggards were reported for this week, indicating a positive trend in the market.

 

On the GSE market indices, the GSE Composite Index (GSE-CI) added 96.10 points to close at 4,586.28, representing a weekly gain of 2.14%, a month gain of 16.09%, and an overall year-to-date gain of 46.52%. The GSE Financial Stocks Index (GSE-FSI), likewise, rose by 20.62 points to reach 2,115.52 points, a weekly gain of 0.98%, and a year-to-date return of 11.25% for investors.

 

MOST TRADED STOCKS

Ticker

Traded Volume

Price (GHS)
MTNGH 453,869 2.41
CAL 110,350 0.34
GCB 102,372 5.90
SIC 20,446 0.25
EGL 13,136 1.55

Source(s): Ghana Stock Exchange

 

TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Country

Index

Level

YTD %
Ghana GSE-CI 4,586.28 ▲46.52
Zambia LuSE ASI 14,480.57 ▲33.73
Nigeria NGSE ASI 97,745.73 ▲30.72
Malawi MSE ASI 132,752.47 ▲19.65
Tanzania DSE ASI 110.03 ▲18.07

Source(s): AFX Kwayisi, African Markets

 

 

COMMODITY MARKET

The commodities market has shown varied performance. Gold prices have surged from US$ 2,386.50 to US$ 2,442.8 per troy ounce. In contrast, Brent Crude prices have declined from US$ 81.13 to US$ 76.81 per barrel of crude oil, Similarly, Cocoa prices dipped from US$ 8041.10 to US$ 7533.30 per ton. The rise in gold prices suggests increased demand or investor interest, while the declines in Brent Crude and Cocoa prices may indicate reduced demand.

Source(s): Trading Economics

 

 

CURRENCY MARKET

The Ghanaian Cedi (GHS) has shown notable depreciation against major foreign currencies year-to-date (YTD). The exchange rate for USD/GHS has risen from GHS 14.83 (previous week) to 14.97, with a 25.97% gain to the dollar YTD. Similarly, GBP/GHS increased from GHS 19.08 (previous week) to 19.14, reflecting a 27.50% increase compared to the beginning of the year. The EUR/GHS exchange rate also climbed from GHS 16.11 (previous week) to GHS 16.33, indicating a 25.30% year-to-date gain for shared currency.

 

Source(s): Bank of Ghana

 

 

HIGHLIGHTS: GHANA’S CARBON CREDITS AND ECONOMIC POTENTIAL

  • Ghana primarily operates within voluntary markets to promote clean energy production, reduce emissions, and foster sustainable initiatives.

 

  • As of May 30th, 2024, retired 7,902.62 kilotonnes (kt) of carbon credits through household projects and 704 kt through Natural and Biological Systems projects (West African Climate Alliance, 2024).

 

  • Economic Potential: Ghana could unlock $82 billion annually from carbon credits.

 

  • Support: Efforts supported by the Ghana Stock Exchange and the Environmental Protection Agency to develop climate finance initiatives, aiding Ghana’s $562 billion transition plan.

 

 

UPCOMING EVENTS

Association Cambiste International (ACI) Ghana Financial Markets Conference 2024

Theme:  Navigating the Future: Innovation, Ethical Excellence, and Inclusion in Ghana’s Financial Markets

Date: 22nd August 2024

Location: The Grand Arena, International Conference Centre

 

 

West African Energy Summit

Theme: Driving Global Finance, Deal Origination and Local Content in the West African Energy Sector.

Date: 3rd September, 2024 – 5th September, 2024

Location: Accra International Conference Centre

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WEEKLY FINANCIAL MARKET REPORT AS OF 26TH JULY 2024

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KEY HEADLINES

  • Government has reached a preliminary agreement with the Eurobond holders’ committees to restructure approximately US$13.1 billion in outstanding Eurobonds. (Mid-Year Fiscal Policy Review, 2024)

  • Ghana’s Petroleum Funds Thrive with Strategic Investments, Yielding Robust Returns in H1 2024. (BoG, 2024)
  • Monetary Policy Committee maintains rate at 29 percent (BoG, 2024)
  • National Insurance Commission (NIC) Welcomes Five Innovative Solutions to Insurance Sandbox for Groundbreaking Testing. (NIC, 2024)
  • The GSE-CI continued its bullish run, while Nigeria’s NGX ASI slipped to third place among the best-performing African stocks year-to-date.
  • IOSCO records 43 unauthorized investment firms in the United Kingdom (IOSCO, 2024)

 

PRIMARY DEBT MARKET ISSUANCE WEEK

At the last auction of the Government of Ghana treasury bills held on July 26, 2024, Government accepted all the bids tendered, totaling GHS 4,062.11 million across 91, 182, and 364-Day bills and representing 15 percentage points below the target for the week.

 

Security

Current %

Previous %

91-Day GoG Bill

24.7880

24.7879

182-Day GoG Bill

26.7414

26.7129

364-Day GoG Bill

27.8563

27.7880

Source(s): Bank of Ghana

 

Interest rates on the 182-Day and 364-Day increased marginally by 0.11% and 0.25% respectively to close at 26.74% and 27.86%. However, interest rate on the 91-Day treasury security largely remained unchanged at 24.79%. For the upcoming auction, Government seeks to raise a total of GHS 4,363.0.00 million from the sale of the 91-Day, 182-Day, and 364-Day bills.

 

 

GHANA STOCK EXCHANGE MARKET

Concluding the trading activities for the week, a total of 1,692,719.00 shares, valued at GHS 15,523,453.89, were traded in five equities. The current market capitalization of the Ghana Stock Exchange ended the week at GHS 93.3 billion.

 

Gainers

Laggards

Ticker

Price (GHS)

Weekly Change 

Ticker

Price (GHS)

Weekly Change

EGL

1.55

0.18

GLD

362.50

4.65

MTNGH

2.34

0.14

 

Source: GSE

Regarding, the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) moved up 133.72 points to close at 4,490.18, representing a one-week gain of 3.07%, a month gain of 17.25%, and an overall year-to-date gain of 43.45%. Additionally, the GSE Financial Stocks Index (GSE-FSI) also increased by 0.07% to reach 2,094.90 points, making a one-week gain of 0.25%, a month loss of 0.95%, and a year-to-date gain of 10.17%.

 

MOST TRADED STOCKS

The recent trading activity saw MTNGH leading with a total traded volume of 964,891 shares at a price of GHS 2.34. CAL followed with 322,386 shares traded in at GHS 0.34. EGL had a volume of 235,071 shares at GHS 1.55, while RBGH traded 46,186 shares at GHS 0.48. Additionally, GLD recorded a traded volume of 34,415 shares, priced at GHS 362.50 per share.

 

Ticker

Traded Volume

Price (GHS)

MTNGH

964,891

2.34

CAL

322,386

0.34

EGL

235,071

1.55

RBGH

46,186

0.48

GLD

34,415

362.50

Source(s): GSE

 

 

TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Country

Index

Level

YTD %

Ghana

GSE-CI

4,320.07

▲43.45

Zambia

LuSE ASI

14,458.44

▲33.53

Nigeria

NGX ASI

98,201.49

▲31.33

Tanzania

DSE ASI

2,053.45

▲17.30

Uganda

USE ASI

1,021.33

▲19.57

Source(s): AFX Kwayisi, African Markets

 

 

GHANA FIXED INCOME MARKET VOLUME TRADED

Throughout the week, the daily trading volume showed significant changes compared to the previous week. On Monday, the volume surged by 141% from the previous week’s GHS 235,498,466 to GHS 567,746,865. On Tuesday, the volume decreased by 24% compared to the previous week’s GHS 869,911,069, dropping to GH¢ 657,776,089, with GHS 111,258,611 attributed to Domestic Debt Exchange Programme (DDEP) bonds.

 

Day

Vol.Tr (GHS)

Wk Change %

Vol.Tr. DDEP (GHS)

Monday

567,746,865

▲141%

–

Tuesday

657,776,089

▼24%

111,258,611

Wednesday

800,531,185

▼8%

7,505,212

Thursday

321,066,860

▼16%

2,523

Friday

583,345,059

▼10%

285,031,832

Source: GFIM

On Wednesday, the volume further declined by 8%, from the previous week’s GHS 865,445,037 to GHS 800,531,185, including GHS 7,505,212 from DDEP. On Thursday, the volume fell by 16% compared to the previous week’s GHS 384,286,004, reaching GHS 321,066,860, with only GHS 2,523 in DDEP bonds. By Friday, the volume decreased by 10% from the previous week’s GHS 648,920,122 to GHS 583,345,059, with a significant GHS 285,031,832 from DDEP bonds.

 

 

CURRENCY EXCHANGE

In the currency exchange market, the USD/GHS increased to GHS 14.8283 from GHS 14.7811, showing a year-to-date (YTD) appreciation of 24.79%. The GBP/GHS slightly declined to GHS 19.0818 from GHS 19.1009, reflecting a YTD gain of 27.11%. Meanwhile, the EUR/GHS edged up to GHS 16.1075 from GHS 16.0938, marking a YTD increase of 23.63%.

Source(s): BoG

Overall, the cedi has faced considerable depreciation against these major currencies year-to-date, despite the weekly changes being relatively small.

 

 

COMMODITY MARKET

Over the past week, Brent Crude experienced a depreciation of 1.80%, decreasing from $82.62 to $81.13 per barrel. Similarly, WTI Crude Oil saw a decline of 1.88%, from $78.64 to $77.16 per barrel

 

Source(s): Trading Economics

Gold posted a modest drop of 0.35%, from $2,395.00 to $2,386.50 per troy ounce. Cocoa registered the most significant contraction, declining by 2.46% from $7,736.50 to $7,926.80 per ton.

 

 

OUTLOOK

The Bank of Ghana, with a strong external position and substantial reserve build-up, could be well-prepared to shield the economy from external shocks and stabilize the foreign exchange market.

 

While inflation is anticipated to stay within the target range for the year, there are slight upward risks. To achieve year-end inflation objectives, it will be necessary to maintain a strong monetary policy stance supported by rigorous fiscal consolidation efforts and vigilant monitoring.

 

Moreover, NIC’s five innovative concepts will undergo a rigorous testing phase within the sandbox environment, allowing for experimentation and exploration of new business models, technologies, and customer-centric solutions. It is expected that these solutions will provide clearer outcomes to allow for the mainstream regularization of similar solutions in the market.

 

 

 

 

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.

 

Currency Exchange as at 19 July

WEEKLY FINANCIAL MARKET REPORT AS OF 19TH JULY 2024

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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): 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

During the week, the most traded stocks on the Ghana Stock Exchange included MTNGH, EGL, EGH, IIL, and CAL. MTNGH led the market with a traded volume of 21,517,375 shares at a price of GHS 2.20. EGL followed with 4,828,115 shares traded at GHS 1.37.

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.

 

TOP PERFORMING AFRICAN STOCK INDICES
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%.

Weekly Change of Total Volume Traded

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%.

Commodity Current 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.

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