Ghana’s financial markets witnessed mixed trends in the past week, marked by increased demand for Treasury bill, a dip in currency (Cedi) strength, subdued bond trading, and a bullish performance on the Ghana Stock Exchange (GSE), especially among financial and telecom stocks.
Investor interest in short-term government securities remained strong, with total bids submitted rising from GH₵5.47 billion the previous week to GH₵7.23 billion in the most recent Treasury bill auction.
Although the government aimed to raise GH₵7.59 billion, the auction recorded a 4.78% undersubscription.
All bids submitted for the 91-day and 182-day Treasury bills were accepted, while 84.79% of bids for the 364-day bill were approved, indicating sustained confidence in short-term instruments.
Despite strong demand, yields on all maturities continued their downward trend.
The 91-day bill fell by 9 basis points to 14.70%, the 182-day bill dropped by 20 basis points to 15.25%, and the 364-day bill declined by 6 basis points to 15.74%.
Bond trading slows as govt securities dominate
On the Ghana Fixed Income Market (GFIM), activity dipped during the week under review. Total trading volume declined by 27.3%, falling to GH₵2.3 billion.
Government of Ghana (GoG) Notes and Bonds dominated the market, accounting for 51.88% of the total volume.
Treasury bills followed with 34.28%, while corporate bonds contributed 13.84%, reflecting a slight shift in investor focus away from private debt instruments.
Cedi loses ground despite year-to-date gains
The Ghanaian cedi weakened against all three major trading currencies over the past week.
Against the US dollar, the cedi depreciated by 0.97%, closing at GH₵10.3500, despite retaining a solid year-to-date appreciation of 42.03%.
It also slipped by 1.05% against the British pound to close at GH₵14.0766, and by 1.96% against the euro, ending the week at GH₵11.9673.
Open market midrates showed the cedi trading at GH₵10.35 to the dollar, GH₵13.95 to the pound, and GH₵11.81 to the euro, according to indicative figures.
While the cedi has held onto impressive year-to-date gains—over 30% against both the pound and euro—recent depreciation reflects ongoing foreign exchange demand pressures and cautious investor sentiment.
Financial and telecom stocks power market rally
Meanwhile, the Ghana Stock Exchange saw a robust performance, with the GSE Composite Index rising by 2.82% to close the week at 6,174.03 points.
This pushed the index’s year-to-date return to an impressive 26.30%.
The rally was driven by strong performances from leading equities including Societe Generale Ghana (SOGEGH), which surged 10% to GH₵1.98; Ecobank Ghana (EGH), up 9.72% to GH₵8.35; and MTN Ghana (MTNGH), which gained 4.63% to close at GH₵2.94.
Gold-backed ETF NewGold (GLD) also recorded a 6.81% increase to GH₵388.43, despite a year-to-date return of -0.53%. GCB Bank Ltd (GCB) inched up by 0.56% to GH₵8.90, while Benso Oil Palm Plantation (BOPP) saw a modest gain of 0.15% to end at GH₵34.25.
Despite the index’s rise, overall market activity fell sharply. Trading volume declined by 70.15%, from over 11 million shares to just 3.34 million shares, with a total traded value of approximately GH₵21 million.
Eyes on financial and ICT stocks
Market analysts expect financial stocks and ICT sector equities to play pivotal roles in shaping the index’s trajectory in the coming week.
The strong year-to-date returns on banking and telecom stocks have bolstered investor confidence in sectors viewed as resilient in the face of broader macroeconomic volatility.
With Treasury yields falling and the cedi under moderate pressure, investor interest may pivot more decisively toward equities, particularly in companies with strong fundamentals and consistent dividend histories.
By Tesah Capital
