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.