Ghana’s financial markets recorded positive momentum during the week, supported by high demand for government securities, a strong recovery in the local currency, and continued upward movement on the Ghana Stock Exchange, even as equity trading volumes experienced a noticeable dip.
Demand for Treasury bills remained robust in the primary market, while the cedi posted notable weekly gains against major trading currencies, complementing the stock market’s strong year-to-date performance.
Primary T-Bill Auction Oversubscribed by 88% as Short-Term Yields Drop
Investor participation at the primary Treasury bill auction moderated to GH¢11.28 billion from GH¢11.64 billion in the prior week. Despite the slight decrease, total bids comfortably exceeded the government’s target of GH¢5.99 billion, representing an 88.22% oversubscription rate.
The government accepted 80.24% of bids for the 91-day Treasury bill, 41.08% for the 182-day paper, and 5.87% for the 364-day bill. Yields declined across all three tenors, lowering short-term borrowing costs for the state:
The rate on the 91-day bill fell by 16 basis points to 5.47%. The 182-day rate dropped by 26 basis points to 7.27%. The 364-day yield posted the largest decline, falling 49 basis points to 12.50%.
The government plans to raise GH¢5.43 billion at its next auction. The ongoing oversubscription despite falling yields highlights sustained investor interest in sovereign short-term debt instruments.
Fixed Income Liquidity Surges 42% on Restructured Bond Activity
Trading activity on the Ghana Fixed Income Market strengthened significantly over the weekly period. Total trading volume rose 42.3% to GH¢12.82 billion, driven primarily by secondary market exchanges in sovereign paper.
Domestic Debt Exchange Programme bonds dominated secondary market trading, accounting for 67.42% of total volume. Treasury bills represented 25.78%, while sell-buy-back transactions contributed 6.22%. Corporate bonds accounted for 0.56%, and new Government of Ghana notes made up 0.01%. Restructured debt remains the central driver of secondary liquidity.
Cedi Staging Strong Weekly Recovery Against Major Currencies
The cedi posted sharp weekly gains against major foreign currencies, cutting down its cumulative losses for the year:
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Against the US dollar, the cedi appreciated 7.41% to close at GH¢10.95 (interbank rate), leaving its year-to-date depreciation at 4.57%. Against the British pound, the cedi gained 6.97% to trade at GH¢14.84, bringing its year-to-date drop to 5.29%. Against the euro, the cedi rose 7.26% to end the week at GH¢12.68, down 3.22% year-to-date.
On the open retail market, mid-rates averaged approximately GH¢11.50 against the US dollar, GH¢15.60 against the British pound, and GH¢13.35 against the euro.
Stock Exchange Hits 74.5% Year-to-Date Return Led by Double-Digit Gainers
The GSE Composite Index maintained its rally, closing the week at 15,307.71 points to extend its year-to-date gain to 74.54%.
DASPHARMA led the weekly gainers, advancing 55.77% to GH¢0.81 (YTD: +113.16%). DIGICUT rose 44.44% to GH¢0.13. CLYD surged 32.92% to GH¢6.50, lifting its year-to-date return to 1,313.04%. HORDS gained 18.18% to GH¢0.65 (YTD: +550%). SIC advanced 16.70% to GH¢5.59.
A few equities recorded modest declines during the week. ACCESS fell 1.25% to GH¢31.49, though it maintains a 94.38% year-to-date gain. FML dropped 0.75% to GH¢13.20, ALLGH fell 0.55% to GH¢5.40, GCB slipped 0.35% to GH¢42.95, and EGL edged down 0.10% to GH¢10.02.
Equity Volumes Contract Despite Higher Share Prices
Despite the upward movement in stock indices, actual trading volume on the equities market dropped by 66.16%. Total shares traded fell from 29.73 million to 10.06 million, with a total value of approximately GH¢31.35 million.
This divergence between rising equity valuations and lower transaction volumes indicates that price increases were driven by select large-cap movements rather than market-wide trading activity. The financial and ICT sectors remain key focus areas for equities in the coming sessions.
