Treasury Bill yields rise, Cedi weakens

The latest Treasury bill auction saw a significant drop in investor demand, with the government raising GH₵4.39 billion, falling short of its target of GH₵5.88 billion.
This represented a 25.28% undersubscription rate. Despite the lower demand, the government accepted all bids for the 91-day, 182-day, and 364-day Treasury bills.
The yield on the 91-day T-bill increased by nine basis points to 25.01%, while the 182-day T-bill yield edged up by two basis points to 26.82%.
The 364-day T-bill yield also rose slightly by one basis point to 28.08%.

Secondary market activity on the decline
In the Ghana Fixed Income Market (GFIM), trading volumes dropped by 10.5% to GH₵3.73 billion over the past week. Treasury bills dominated market activity, accounting for 75.04% of the total volume.
Sell and buy back trades contributed 12.97%, while New Government of Ghana Notes and Bonds represented 11.37% of the volume.
Corporate bonds and Old GoG Notes and Bonds made up less than 1% of the total market volume.

Cedi weakens against major currencies
The Ghanaian Cedi weakened further during the week, losing ground against the US Dollar, British Pound, and Euro.
The Cedi depreciated by 0.73% against the Dollar, 2.02% against the Pound Sterling, and 1.49% against the Euro.
The Cedi closed the week with midrates of GH₵15.7559 to the Dollar, GH₵20.9877 to the Pound Sterling, and GH₵17.6027 to the Euro.
In the open market, the Cedi was traded at GH₵15.6667 per Dollar, GH₵20.8530 per Pound, and GH₵17.4972 per Euro.

GSE gains
The Ghana Stock Exchange (GSE) saw a slight positive movement, with the GSE Composite Index increasing by 0.20%. This performance was driven by gains in key stocks such as Ecobank Transnational Incorporated (ETI), which rose by 6.25% to GH₵0.17, NewGold (GLD), which gained 1.86% to GH₵397.96, and GCB Bank PLC (GCB), which advanced by 1.35% to GH₵6.
Notably, no stocks experienced a decline during the week, while MTNGH closed at GH₵2.20, unchanged from the previous week.
The GSE Composite Index closed at 4,381.86 points, reflecting a year-to-date gain of 39.99%.
Market activity surged, with trading volumes increasing by 89.7% to 6,036,528 shares, generating a total turnover of GH₵14.38 million.

Outlook for the coming week
Analysts from Tesah Capital anticipate that financial stocks and the ICT sector will play a key role in driving index performance in the coming week.