Investor appetite for short-term government securities showed a slight uptick at the latest Treasury bill auction, with total bids rising to GH₵5,353.15 million from GH₵5,216.36 million the previous week.
Despite the increased interest, the auction ended in a 19.91% undersubscription, as the government had targeted GH₵6,684 million.
The auction results revealed a mixed outcome for the different maturities on offer.
The 91-day Treasury bill saw 48% of bids accepted, the 182-day bill recorded a 70% acceptance rate, and the 364-day bill followed with 59.4% accepted.
Meanwhile, yields continued their downward trajectory, with the 91-day bill dropping by 5 basis points to 15.11%, the 182-day by 2 basis points to 15.68%, and the 364-day by 1 basis point to 16.79%.
Ghana fixed income market: Trading volumes dip
On the secondary market, trading activity on the Ghana Fixed Income Market (GFIM) fell by 7.5% over the week to GH¢3.7 billion.
Treasury bills continued to dominate activity, accounting for 42.92% of the total volume traded.
New government of Ghana notes and bonds made up 42.06% of trades, followed by sell/buy-back transactions at 14.09%. Legacy government notes and bonds and corporate bonds contributed marginally, making up 0.55% and 0.39% of total volumes, respectively.
Cedi posts broad gains against major currencies
The Ghanaian cedi strengthened significantly across all major foreign currencies, continuing its positive performance in recent weeks.
Against the U.S. dollar, the cedi appreciated by 6.18%, closing the week at GH¢12.3200 on the interbank market.
The cedi also gained 6.54% against the British pound to close at GH¢16.3296 and appreciated 7.24% against the euro to GH¢13.7223.
Indicative open market rates at the close of the week reflected similar trends, with the dollar trading at GH¢12.26, the pound at GH¢16.48, and the euro at GH₵13.88.
GSE gains over 37%
The local equities market ended the week on a bullish note, with the Ghana Stock Exchange (GSE) Composite Index surging by 4.51% to close at 6,707.64 points.
The index has now posted an impressive year-to-date return of 37.21%, cementing investor confidence in key listed stocks.
The rally was led by strong performances from several blue-chip companies. Unilever Ghana PLC (UNIL) gained 4.91% to close at GH₵20.50 (YTD: 5.13%), while Ecobank Ghana Ltd (EGH) posted an 11.77% jump to GH₵7.50 (YTD: 15.38%). Fan Milk Ltd (FML) rose 7.89% to GH¢4.10 (YTD: 10.81%) and MTN Ghana (MTNGH) advanced 7.27% to GH¢3.54 (YTD: 41.60%).
Other gainers included Guinness Ghana Breweries Ltd (GGBL), which rose by 1.69% to GH₵6 (YTD: 9.09%), GCB Bank Ltd (GCB) up by 0.79% to GH¢7.66 (YTD: 20.25%), and Ghana Oil Company Limited (GOIL), which increased by 0.57% to GH¢1.80 (YTD: 18.42%).
Declines in select stocks amid bullish sentiment
Despite the generally positive outlook, some stocks recorded declines. CAL Bank Ltd (CAL) shed 1.54% to close at GH₵0.64, albeit maintaining a stellar year-to-date return of 82.86%. Total Petroleum Ghana Ltd (TOTAL) dipped by 0.40% to GH¢24.90 (YTD: 89.79%), while New Gold (GLD) saw a steep 11% decline to GH¢380.03, pushing its year-to-date return into negative territory at -2.68%.
Market analysts anticipate further losses in the value of Absa New Gold (GLD) in the coming week, primarily due to the continued appreciation of the Ghana cedi, which tends to erode the local value of gold-backed assets.
Trading activity surges
Trading activity on the GSE saw a dramatic increase in volumes, with total shares traded jumping by 128.8% to 102,564,658.55 from 44,948,575 in the previous week.
The total value of shares traded also rose significantly, reaching GH₵24 million.
This surge in trading volume signals renewed investor confidence in Ghana’s capital markets, buoyed by a strengthening cedi, declining inflation expectations, and robust corporate performance across key sectors.
Cedi strength may impact commodities
As the cedi continues its upward march and Treasury yields trend lower, investor interest may gradually shift toward equities and longer-term instruments.
However, commodities and gold-backed funds could see pressure, and market watchers will be keen to see how macroeconomic stability influences capital market flows in the weeks ahead.
