WEEKLY FINANCIAL MARKET REPORT AS OF 27TH SEPTEMBER 2024
KEY HEADLINES
The Bank of Ghana cut its benchmark monetary policy rate during a regular meeting on September 27, 2024, by 200 basis points, to 27% from 29% in January. (Bank of Ghana, 2024)
The Bank of Ghana has launched gold coins as new investment option for Ghanaians as part of its Responsible Gold Sourcing Policy Framework (Bank of Ghana, 2024)
This week, the Ghana Stock Exchange recorded the highest total shares traded since the 11th week of 2024 (15th March).
MONETARY POLICY RATE
On September 27, 2024, the Bank of Ghana reduced its benchmark monetary policy rate by 200 basis points, bringing it down to 27% from 29% in January. This marks the first rate cut in eight months and the sharpest reduction since March 2018. Meanwhile, annual consumer inflation in Ghana eased for the fifth straight month in August 2024, falling to 20.4% from 20.9% in July.
PRIMARY DEBT MARKET ISSUANCE WEEK
The GoG Treasury Bill interest rates had a mixed performance in all securities compared to the previous week. This week’s total bids received amounted to GH₵ 2,598.70 million for the 91-day bill, GH₵ 830.28 million for the 182-day bill, and GH₵ 1,338.43 million for the 364-day bill, with all bids fully accepted.
The range of bid interest rates for the 91-day bill was between 25.6225% and 25.7300%, with a weighted average interest rate of 25.6439%. For the 182-day bill, bid interest rates ranged from 26.9117% to 26.9249%, with a weighted average interest rate of 26.9248%. The 364-day bill had a bid interest rate between 28.6339% and 29.0000%, with a weighted average interest rate of 28.6785%.
Security |
Current Wk % |
Previous Wk % |
91-Day GoG Bill |
25.6439 |
25.4357 |
182-Day GoG Bill |
26.9248 |
26.8151 |
364-Day GoG Bill |
28.6785 |
28.0789 |
Source(s): Bank of Ghana
GHANA FIXED INCOME MARKET VOLUME TRADED
The Ghana Fixed Income Market (GFIM) saw a 4.56% decline in total traded volume from the previous week, ending the week at GH₵ 3.56 billion. The number of transactions also dropped by 12.76%. Treasury bills dominated the market with a 99.34% share, significantly outperforming New GoG Notes & Bonds, which held only 0.47% of the market.
Between September 24 and September 27, 2024, trading volumes varied among securities, with September 24 witnessing GH₵ 754 million in trades, mostly driven by Treasury bills. On September 25, trade volume surged to GH₵ 1,254 million, again driven by heightened activity in Treasury Bills. This was followed by a sharp decline on September 26, with volumes decreasing to GH₵ 783 million, mostly owing to Treasury bill trading.
Week’s Ghana Fixed Income Market Total Volume Traded
On September 27, there was marginal decline in the volume descending to GH₵ 768 million, with most part constituting Treasury Bills and New GoG Notes & Bonds.
EQUITY MARKET
Trading activity on the local bourse surged this week, with a volume of 266,695,648 shares exchanged, marking an 4318% increase from the previous week. The total traded value also saw a significant rise of 3556%, reaching GH₵ 525.79 million. This heightened trading activity resulted in 7.04% gain in the market capitalization, closing at GH₵ 99.23 billion.
Week’s Equities Top Gainers
In terms of market indices, the GSE Composite Index (GSE-CI) closed at 4,380.10, showing a weekly loss of 0.04% and a monthly gain of 0.6%, but maintaining a strong year-to-date gain of 39.93%. Meanwhile, the GSE Financial Stocks Index (GSE-FSI) also increased to reach 2,190.37 points, posting a slight weekly increase of 1.7%, a monthly rise of 3.41%, and a year-to-date gain of 15.19%.
EQUITY MARKET MOST TRADED STOCKS | ||
Ticker |
Traded Volume |
Price (GHS) |
MTNGH |
266,516,131 |
2.19 |
EGL |
50,335 |
1.99 |
CAL |
4,381 |
0.28 |
UNIL |
28,501 |
16.50 |
GLD |
18,743 |
405.90 |
Source(s): Ghana Stock Exchange
COMMODITY MARKET
The commodities market experienced a broad decline in performance compared to the previous week. On Thursday, Gold prices reached an all-time high of $2,672.6 and then retreated by 0.5% to $2,658.40 per ounce on Friday.
Brent crude prices slightly decreased from US$ 74.49 to US$ 71.98 per barrel. Meanwhile, investors weighed fresh stimulus from top crude importer China against expectations for higher global supply. According to the Bureau of Safety and Environmental Enforcement, about 25% of oil production in the US Gulf of Mexico was shut in because of the Hurricane Helene.
Source(s): Trading Economics
Concerns about constrained supply in key West African producing countries drove cocoa prices to continue its ascent, hitting $8,289.20 per ton. The latest data show that between October 1, 2023 and September 22, 2024, there was a 24.5% drop in the amount of cocoa exported by Ivory Coast farmers to ports, with 1.754 MMT being sent out.
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₵ 15.76 to GH₵ 15.83, a 5-year high since 2020. Similarly, the GBP/GHS rate went from GH₵ 20.99 to GH₵ 21.22, and the EUR/GHS rate slightly rose from GH₵ 17.60 to GH₵ 17.68. These changes show that the cedi is losing value compared to these main currencies.
Source(s): Bank of Ghana
OUTLOOK
Inflation is expected to continue to ease toward the central bank’s year-end goal of 13% to 17% and steadily move toward the medium-term target by the end of 2025.
The target for tender 1923 involves the issuance of securities, specifically 91-day, 182-day, and 364-day Treasury Bills, with a total amount of GH¢ 5,980.00 million.