Saturday, Jan 28
Ghana Stock Exchange Firms Up. Bullish performance

Ghana Stock Exchange Firms Up. Bullish performance

The Ghana Stock Exchange firmed up its impressive performance for 2021, recording a strong growth in September 2021. The local bourse has been recording a strong performance for the year and trading for the second week of September was no different, as profit taking activities weighed positively on the benchmark indices.

The GSE Composite Index added nearly 47 points to close the week at a price of 2,800.36, extending investors’ year-to-date gains to 44.23 percent, and making the local bourse the second best in Africa, according to the latest 2021 rankings. The GSE Financial Stock Index also inched up by 29.40 percent to settle at 1,959.18, with a year-to-date gain of 9.90 percent. A total of 4.43 million shares valued at GHȼ5.84 million changed hands in trading across seventeen equities. Scancom PLC (MNTGH) came back as the week’s most traded stock recording more than 97 percent of total volumes traded. The market capitalization appreciated in value to close the week at GHȼ63,430.44 million.


At the closing bell, a total of nine (9) equities, all advancers witnessed price movements as no laggards were recorded. Ecobank Ghana PLC (EGH) led the bulls, adding 46 pesewas to open the week’s trade at GHȼ7.80 per share to bring shareholders year-to-date gain to 8.33 percent. TOTAL followed with 42 pesewas appreciation to end the week at a share price GHȼ4.62 per share, lifting investors’ year-to-date returns to 63.25 percent.


Yields on the Government of Ghana (GoG) Treasury securities at the back end of the curve registered missed outturn in September 2021. The 91-Day bill yield remained unchanged, while the 182-Day bill rose by a basis point to close at 12.45 percent and 13.21 percent, respectively. The 364-Day bill, the treasury note and bond remained unchanged, as they were not scheduled for sale at the week’s auctions

Government accepted all the GHȼ2,502.96million bids tendered by investors for the 91-Day, 182-Day, including the newly issued 6-Year Fixed Rate Bond. The 6-Year Bond took the lion share of government’s purchases and closed at a coupon rate of 18.80 percent, representing 45 basis points decline from the previous issuance in January of this year.


The Ghana cedi posted positive weekly performance on the interbank currency market as it remained stable against the US dollar and appreciated versus the British pound and the Euro. The US dollar rose, lifted by higher U.S. Treasury yields as investors focused on when the central bank was likely to ease its asset purchases. The greenback bounced back from a one-month low, after jobs data for August showed that the labour market growth eased, while wage inflation rose more than the market’s expectation.

Rising inflation pressures, with jobs growth below their desired levels, have recently left Fed officials in a tussle. Data released early on showed that U.S. producer prices up ticked in August, indicating that high inflation was likely to persist for a while, amid supply chains remaining tight as the covid-19 pandemic lingers. On the local front, the US dollar remained stable throughout the week as it traded flat against the local currency at a selling price of GHȼ5.86 on the interbank forex market.

The year-to-date depreciation of the cedi remained unchanged at 1.64 percent. The British pound dipped marginally on the international forex market, after economic data showed Britain's economy grew by just 0.1 percent in July, the least month-on-month rise since January when the country went into a new national lockdown, as the spread of the Delta variant of COVID-19 hit the service sector. Meanwhile, the British Central Bank’s governor, Andrew Bailey said the bank would probably be forced to raise interest rates to combat inflationary pressures over the next two to three years, even as Britain’s economic recovery from the covid-19 pandemic is slowing. The Pound sterling thus recorded 0.15 percent weekly depreciation to the cedi as it traded at a selling price of GHȼ8.11.

The year-to-date depreciation of the cedi moderated to 2.90 percent. The euro traded lower in a week of volatilities, buoyed by the European Central Bank (ECB) deciding to move to “a moderately lower pace” in its €1.85 trillion pandemic emergency purchase program from the €80 billion a month level it has run at since March, amid a stronger near-term outlook for prices and growth.

The ECB’s President, Christine Lagarde said the unanimously agreed shift to a slower pace of purchases was not tapering, trying to reassure bond investors but failed to provide particulars about the exact end of the emergency support. The common currency lost grounds to the cedi by 0.48 percent week-on-week, as it traded at GHȼ6.93 on the interbank currency market, bringing the year-to-date appreciation of the cedi to 1.98 percent. 


US stocks struggled to hold gains on Friday, 17th September 2021. Threat to inflation took the shine off expectations of an ease in U.S.-China tensions, following a call between President Biden and President Xi, amid surging Covid-19 cases. Data released earlier showed U.S. producer prices went up 0.7 percent in August 2021 above the market’s projection of 0.6 percent, the highest annual gain in almost 11 years, as the effect of the global pandemic continues to pressure supply chains.

On the bright side, President Biden outlined a broad plan to boost COVID-19 vaccination rates in the US, pressuring private and federal employers to immunize their workforce. Both the S&P 500 and the Dow Jones Industrial Average trimmed their values to close the week at price levels of 4,458.58 and 34,607.72, respectively. The London bourse closed lower at the closing bell, recording the highest weekly decline since mid-August 2021 after the latest data showed UK’s economy grew by just 0.1% in July, the least monthly increase since January when the country was forced into fresh restrictions at the hike of spread of the Delta variant of COVID-19.

The passing of new tax rate hike to fund health and social care, pointing to a 1.25 percent increase in UK’s National Insurance tax for both employers and employees and a 1.25 percent uptick to dividend tax, sent the market south. The FTSE 100, thus, recorded a weekly decline of 1.53 percent to close the week at a price of 7,029.20. The Japanese bourse jumped to a six-month high after an impressive week of gains, underpinned by hopes that the new Prime Minister will roll-out a massive economic stimulus program after the incumbent leader, Yoshihide Suga announced his decision not to seek re-election last week, over his handling of the coronavirus pandemic. Japan is currently battling its largest wave of the virus since the pandemic began.

The NIKKEI 225, thus, added 1,253.73 points to close the week at a price of 30,381.84. On the African market, there were mixed outturns at the close of trading, with the Johannesburg All Share and Nigerian All Share ending bearish to close the week at 64,296.06 and 38,921.78 levels, respectively. The Nairobi All Share index on the other hand rose slightly in price to settle at 180.14 bringing shareholders year-to-date returns to 18.43 percent. 


Crude oil prices recovered after a week of mixed outturns, as investors digest China's decision to tap, for the first time, from its giant oil reserves to ease the pressure of rising input cost. A statement by China's Strategic Reserves Administration came after factory-gate inflation in the country climbed to a 13-year high, and just a month after the White House asked the OPEC+ to pump more oil amid rising gasoline prices in America as hurricane Ida's fallout continued to cripple US oil production, leaving producers struggling to restart offshore platforms.

On the international commodity market, Brent crude rose marginally by 31 cents to settle at US$72.92 per barrel, at the close of trading on Friday. Gold suffered series of losses, registering its first weekly loss since early August, underpinned by a strengthening US dollar and uncertainties over the timeline for the Fed tapering. Latest data showed US producer inflation rose by 0.7 percent from the month of August, above market expectations of 0.6 percent. Meanwhile, news that India's gold imports in August nearly doubled from a year earlier to the highest in five months on strong demand as jewelers build inventories for the upcoming festive season, gave some shine to the yellow metal.

On weekly basis, gold shaved US$41.60 off its value to settle at US$1,792.10 per ounce, at the close of trade on Friday. Cocoa marginally trimmed in value on the international commodity market despite expectations that supplies in the October-September 2021/22 season will shrink by at least 12.5%, amid late and heavy rains. The cash crop lost US$31.00 to close the week at US$2,643.00 per metric tonne. Coffee prices dipped on the international commodity market despite production shortfall from the world’s largest producer, Brazil. The price of Arabica coffee lost 2.60 percentage points off its value week-on-week to close trade at US$1.860 per pound.

GSE Accelerates Bullish Run In April

GSE Accelerates Bullish Run In April

The Ghana Stock Exchange market since the beginning of the year has been recording some impressive performances and the month of April was not an exception.

chart1 1

The local bourse ended the first quarter of the year bullish, as series of upbeat earnings report buoyed risk taking sentiment on the exchange.
Ecobank Ghana Ltd grew its profit after tax by about 33.63 percent, from a previous value of GH¢128.04 million to GH¢171.10 million. Access Bank Ltd. also saw its profit-after-tax rising from GH¢68.18 million to GH¢74.94 million which resulted in a surge in earnings per share from 39 pesewas to 43 pesewas.

chart2 2

With similar upbeat performances, the GSE Benchmark jumped by 9.28 per cent to settle at 2,561.45 points, corresponding to a year-to-date return of 31.93 percent. The GSE Financial Stocks Index, also rose by 0.70 percent to close the last week of April at 1,840.99 points, reflecting a year-to-date gain of 5.29 percent.


Market activities also improved over the previous week’s outturn. A total of 4.15 million shares valued at GH¢10.22 million exchanged hands, as compared to the 3.64 million shares valued at GH¢3.13 million.
Unilever Ghana Ltd. and MTN Ghana Ltd. were the most actively traded stock as they jointly accounted for 88.30 percent share of the overall traded volume. Market capitalization also improved by 3.98 percent to GHS60,801.73 million at the closure of the week.




In all, a total of seven (7) equities altered their share prices with six (6) advancers and a laggard. GCB Bank Ltd. occupied the top of the advancers’ list with a price gain of 25 pesewas to settle at GH¢4.75 per share.
MTN Ghana Ltd. keenly followed with 18 pesewas appreciation to trade at GH¢1.14 per share. Fan Milk Ltd. and Total Petroleum Ltd. followed with price appreciations of 7 pesewas and 5 pesewas to trade at GH¢1.22 and GH¢3.25 per share, respectively.

Enterprise Group Ltd. and Societe Generale Ghana Ltd. also appeared on the advancers’ list with a pesewa gain each to trade at GH¢1.49 and 18 pesewas per share, respectively.
On the downside, Unilever Ghana Ltd. had its share price falling further by 39 pesewas to settle at GH¢3.60 per share.




The yield on the 91-Day T-Bill rose by 6 basis points to 12.84 per cent at the end of April. Interest rate on the 182-Day T-Bill however, moderated by 4 basis points to 13.53 percent. The yield on the 182-Day T-Bill was unchanged at 16.53 percent. Yields on the Government of Ghana Notes and Bonds also remained unchanged as they were not part of the week’s issuance.


Government accepted all the GH¢573.22 million bids tendered by investors. This fell below the week’s target of GH¢673.00 million with the 91-Day T-Bill dominating by 72.69 percent.
Target for the upcoming auction is pegged at GH¢1,142.00 million through the sale of the 91-Day and 182-Day T-Bills.
Following the release of the issuance calendar for the 2nd quarter of 2020, both ends of the yield curve is anticipated to moderate. The moderation of the 5-Year and 7-Year Bonds should be moderate to keep the general uptrend nature of the yield curve. A yield relatively higher than the 3-Year Note, is expected to largely contribute to the success of lengthening the maturity profile of the public debt. This will serve as an incentive for the attraction of investors into committing funds that can aid the long-term developmental plans of the Government.



The Government of Ghana seeks to raise a total of GH¢21.43 billion through the issuance of varied treasury securities ranging from 91-Days to 7-Years.
This is in line with the Net Domestic Financing, Government’s liability management programme and the objective by the Government in lengthening the maturity profile of the public debt. A total of GH¢8.42 billion is targeted for the month of April, GH¢7.08 billion for May and the remaining GH¢5.93 billion in June 2021. The issuance of the 91-Day T-Bill dominates, constituting about 52.73 percent (GH¢11.30 billion) of the targeted value for the quarter. An amount of GH¢5.56 million is also expected to be raised from the issuance of the 182-Day T-Bill and GH¢1.57 billion from the sale of 364-Day T-Bills.
The value of Bonds for the quarter is tipped at GH¢3.00 billion with two-third coming from the sale of the 5-Year Bond. There will be no fresh issuance of Government Notes for the quarter under review.



On the interbank currency market, the Ghana cedi depreciated against the US dollar but advanced against the British pound and the Euro in the last week of April.

The US dollar dimmed its shine on the international currency as it dropped to its lowest in nine-weeks on account of the dovish policy stance of the US Federal Reserve. The decision by the Fed to still adhere to keeping all stimulus support on hold until inflation and other growth factors align to the Bank’s target sparked the selloffs of the greenback.
Despite the US dollar’s outturn on the international currency market, it appreciated marginally by 0.02 percent against the cedi at a selling price of GH¢5.74. The year-to-date appreciation of the cedi thus trimmed to 0.49 percent.

The British pound finished the week’s trade on a positive note on the international forex market following growing evidence of economic recovery in the UK. Improved retail sales data for March from 2.5 percent to 5.4 percent in March, the 0.7 percent rise in inflation readings in March and other bullish


readings from the production sectors of the economy coupled with dwindling unemployment rate are factors underpinning the economic recovery in the UK. But on the interbank currency market, the British Pound posted a week-on-week depreciation of 0.18 percent as demand for the currency relatively dipped in the week’s trade at selling price of GH¢7.93. The year-to-date depreciation of the cedi thus reduced to 0.60 percent.

The Euro stepped up its gains on the international currency market on the back of growing economic recovery prospects in the Eurozone. Eurozone economic sentiment came in more-than-expected as it rose to 110.3 points in April. This outpaced the 100.9 points readings for March and target of 102.2 points.
Other upbeat developments were Germany’s consumer price inflation for April which rose by 2.1 percent in April up from the 2.0 percent readings in March 2021, and the significant deployment of coronavirus vaccines to restore normal economic lives in the bloc. In spite of this, the Euro traded lower at GH¢6.90 against the local currency, representing a week-on-week depreciation of 0.30 percent. The year-to-date appreciation of the cedi thus rose to 2.44 percent.


Brent crude oil gained following investors anticipation of bright demand outlook. The demand side of the energy commodity improved on account of consumption raise for the rest of 2021 as major economies fully reopens for business activities. Brent crude oil thus gained $5 to trade at $66.66 per barrel.


Gold ended in the red as downbeat economic data from China affected the demand of the yellow metal. Investors grew worried about the slow pace of growth in the Asian region – especially China following low readings of its key sectors of the economy. The PMI for the Manufacturing sector missed a target of 51.7 points to 51.1 points.
That of the non-manufacturing sector performed lower in April to 54.9 points from a previous rate of 56.3 points with similar readings from the Services sector to affect investors anticipation of economic recovery from the second largest economy. Gold thus shed $8.40 to close at $1,768.60 per ounce.

Coffee posted gains despite a stable production outlook projection by the Colombian Federation of Coffee Growers which affected the price of the soft crop in the early part of the week’s trade. The positive closure of the beans was on the back of speculative trading activities. Coffee thus gained 5 cents to trade at $1.42 per pound.

Cocoa went down despite hawkish expectation of chocolate demand by top producers. Hershey, and Barry Callebaut offered bullish expectation of chocolate consumption for the rest of 2021 on the back of the global economic recovery from the COVID-19 pandemic. Gains were however, truncated on account of uncontrollable supply of the beans from Ivory Coast. Cocoa thus shed $27.50 to trade at $2,382.50 per metric tonne.


IGS Financial Services


Accra Bourse Starts New Year on Positive Note

Accra Bourse Starts New Year on Positive Note

The Ghana Stock Exchange started the new year on a positive note as it extended its strong recovery witnessed in the last month of 2020.


The significant rebound which led to a 28 percent reduction in the year-to-date losses of the benchmark index in 2020 hung upon recovery in business and economic sentiments.


The GSE Composite Index, thus, finished with a year-to-date gain of 0.73 percent as it settled at 1,955.78 points. The GSE Financial Composite Index, similarly, rose by 0.25 percent as it settled at 1,787.20 points. 

three                                                                      GSE Market Indicators

A total of 30.22 million shares valued at GH¢70.21 million exchanged hands. This represents 132. Percent increment from the previous week’s trades of 30.22 million valued at GH¢13.60 million. MTN Ghana Ltd was the most actively traded stocks, accounting for 132.33 percent of the total traded volume. Market capitalization also posted a weekly gain of 0.32 percent as it ended the week’s trade at GH¢54,549.91 million.

 Stock price movements


At the paring of the week’s closing prices to the 2021’s opening prices, two equities altered their share prices; with no laggard recorded.

Standard Chartered Bank Ltd. led the gainers with a price uplift of 19 pesewas to trade at GH¢16.50 per share. MTN Ghana Ltd also added a pesewa to trade at 65 pesewas per share.


Treasury securities


Interest rates on the Government of Ghana treasury securities eased marginally at the week’s auction. The yield on the 91-Day T-Bill dipped by a basis point to settle at 14.09 percent; that of the 182-Day T-Bill also moderated by 14.14 basis points to close at 14.14 percent.

The yield on the 364-Day T-Bill was, however, unchanged at 16.96 percent as it was not scheduled for the week’s auction. Yields on the Government Bonds and Notes were also unaltered. 


All the GH¢1,073.47 million worth of bids tendered by investors at the week’s auction were all accepted by the Government of Ghana. The amount raised outpaced the GH¢987.00 million targeted for the week’s auction and the GH¢739.10 million raised at the previous auction.

The 91-Day T-Bill dominated Government’s purchase, constituting 88.62 percent of the total bids raised. It is in the expectation of Government to raise GH¢756.00 million worth of bids at the upcoming auction through the issuance of both 91-Day, 182-Day, and 364-Day T-Bills at the upcoming auction.


Currency Market


The Ghana cedi outmuscled both the British pound and Euro but lost to the US dollar. The US dollar dropped to its lowest in three years following post-election uncertainties which affected investors bet for the currency. 

Among such developments were impeachment on President Trump after a second time indicating that the US election was fraud and anticipated nature of US governance system after the Democrats won effective control of the Senate.


Despite the US dollar outturn, it recorded a week-on-week gain of 0.01 percent with a selling price of GH¢5.76 on the interbank currency market.

The British pound dimmed its appeal on the international forex market as the second wave of the COVID-19 pandemic casted doubt about recovery of the UK economy. Soaring COVID-19 cases in the UK, instigating another round of lockdowns have further darkened already dim growth prospects. This is expected to underpin next monetary policy review of the Bank of England to push interest rates below zero to support the economy. The British pound thus recorded a week-on-week depreciation of 0.76 percent as it trimmed its selling price to GH¢7.82 on the interbank currency market.

The Euro finished the trading week in the gains despite some disappointing data from the bloc. The Euro benefitted from the dollar’s and pound’s weakness on the international currency market, as investors ignored contractionary services data from Germany and the Eurozone with PMI’s below the 50-point benchmark, to demand more of the shared currency. The Euro also benefitted from surprised uplift in Eurozone’s retails’ sales, as in, rose nearly by 2 percent in November 2020 compared to a contraction of 2 percent in October 2020. Despite the Euro gains, it ended with a weekly depreciation of 0.22 percent as it buoyed its selling price to GH¢7.05 on Friday on the local currency market.



Brent crude oil posted a weekly gain following the decline in global crude inventory and supply cut decision by the Saudi Arabia to contribute to the elimination of the glut in the market. The announcement by the Saudi Arabia Government to cut output by 1 million barrels a day in February and March was welcomed by the market hence contributing to the commodities gain. Brent crude oil thus added $3.50 to trade at $55.3 per barrel.

Gold traded below its year opening price of $1,895.10 per ounce following political development in the US which saw Democrats securing majority in the house of Senate. This paved the way for President-elect Joe Biden to implement more fiscal relief measures which will affect demand for the yellow metal. Gold thus shed $9.60 to trade at $1,885.50 per ounce.

Cocoa registered a week-on-week decline weighed by supply glut concerns on the international commodities market as Ivory Coast continue to record bumper harvest. This coupled with recent stricter lockdowns are expected to create imbalances in the market to demand. Coffee thus eased by $64.00 to trade at $2,539.00 per metric tonne.

Coffee fell to a 2-week low following excess supply of the soft crop onto the global commodities market amidst the general weakness in the Brazilian Real. Data on coffee supply in the months of October and November saw an annual increment of 6.5 percent to 20.2 million bags to affect the performance of Coffee. Coffee dropped by 8 cents to trade at $1.21 per pound.

-IGS Financial Services

GSE ends August 2020 on a bearish note

The Ghana Stock Exchange ended the last week of August bearish on account of selling pressure in some consumer staple stocks– Fan Milk Ltd and Unilever Ghana Ltd. This was spurred by the daunting outlook of their 2020-half-year earnings report.

Fan Milk Ghana Ltd. had its net-profit-after-tax trimmed by 93.35 percent from the GH¢10.57 million recorded in June 2019 to GH¢703,000 in June 2020. This significantly lowered its earnings per share from 9 pesewas in June 2019 to a pesewa in June 2020.

Unilever Ghana Ltd, on the other hand, worsened its outlook as it posted a negative profit-after-tax of GH¢16.84 million from a positive profit-after-tax of GH¢17.09 million.

gse indices 1

On the back of this, the GSE Composite Index thus eased by 38 basis points to settle at an index level of 1,840.07 points, representing a year-to-date loss of 18.48 per cent. The GSE Financial Stocks Index was, however, unchanged at 1,687.40 points, reflecting a year-to-date loss of 16.45 per cent.

Gse indices

The last week of August’s trade realized a total volume of 9.59 million stocks valued at GH¢7.64 million on the bourse. This represents over hundred percent increment over the previous week’s outturn in terms of volume of traded stocks.

Most traded stocks in terms of volume

MTN Ghana Ltd. led the activity chart with 51.18 percent share of the overall traded volume. Market capitalization also went down by 0.21 percent to settle at GH¢52,464.48 million on 4th September 2020.


Stock Price Movements

stock price movement advancers

At the paring of the week (28th August –4th September 2020) under review’s opening and closing prices, 1 advancer and 2 laggards were recorded on the bourse. Cocoa Processing Company Ltd was the sole advancer, it gained 1 pesewa to trade at 3 pesewas.

losers weeks

Unilever Ghana Ltd recorded the worst decline in the week’s trade, losing GHS1.13 pesewas to trade at GHS10.21 per share. Fan Milk Ltd also went down by 19 pesewas to trade at GHS1.04 per share.

 Treasury securities

Treasury securities

The yield on the Government of Ghana Treasury Securities witnessed mixed adjustment at the week’s (28th August –4th September 2020) auction. Interest rate on the 91-Day T-Bill rate dropped by 4 basis points to settle at 14.02 percent. The yields on the 182-Day T-Bill rose by 3 basis points to 14.11 percent and that on the 364-Day T-Bill also increased by 8 basis points to settle at 16.91 percent.

The interest rates on the Government of Ghana’s Treasury Notes and Bonds were, however, unchanged as they were not part of the week’s auction.

results of auction 4th september 2020

Government raised a total of GH¢1,026.57 million from the issuance of the 91-Day, 182-Day, and 364-Day T-Bills in the week under review. The amount raised outstripped the previous week’s value of GH¢806.94 million but missed the week’s target of GH¢1,410.00 million.

The 91-Day T-Bill was the most accepted bid by the Government as it constituted 87.73 percent of the overall bids purchased. A target of GHS919.00 million was set for the next auction from the sale of the 91-Day and 182-Day T-Bills.


Currency market

currency market

The Ghana Cedi posted a recovery against the British Pound and the Euro but extended its loss versus the US Dollar. The US Dollar recorded its biggest weekly gain in two-and-half months on the international currency market after US Fed Vice Chair cleared the myth surrounding the newly adopted monetary policy that seeks to achieve an average inflation rate of 2 percent to balance impacts of super-low inflation; thereby ensuring economic recovery in the US.

The greenback’s lift was further supported by Fed’s hawkish commentary about the gradual pace of economic recovery from the pandemic as US Manufacturing sector expanded for the third straight month in August with the PMI rising by 1.8 points to 56 points. The US dollar thus ended with a weekly appreciation of 0.16 percent as it traded at GH¢5.6969 on the interbank currency. The year-to-date depreciation of the local currency thus rose to 2.82 percent.

Doc1 page 001

The British pound was on the defensive against major rivals on the international currency market on rekindled uncertainties surrounding the Brexit. The lack of progress to obtain a favourable deal from the European Union amidst the uncertainties in the chances of UK’s Government to secure the deal as the possibility dwindled to 30-40 percent significantly affected market sentiment. The British Pound thus, depreciated by 0.87 percent to reduce its selling price to GH¢7.52 on the interbank currency market. The year-to-date depreciation of the cedi reduced to 2.66 percent.

The Euro was knocked down by ill-sentiment surrounding the slow recovery of economic activities in the Eurozone. Eurozone’s consumer prices and unemployment data came in much disappointing than expected despite the easing of the COVID-19 restrictions. Eurozone unemployment rose further in July to 7.9 percent, representing 20 basis points increment over the previous month’s reading of 7.7 percent. Consumer prices also failed to sustain its recovery as it reversed the upward trend in August. The Index fell by 0.2 percent in August against the 0.4 percent rise recorded in July affecting the demand for the currency. The Euro thus posted a weekly depreciation of 0.80 percent to trade at GH¢6.72. The year-to-date depreciation of the cedi thus reduced to 7.48 percent.


Ghana Economic Data page 017

Brent crude oil lowered its value on the international commodities market, posting its biggest weekly decline since June 2020 on lackluster demand on the global market. China– the world’ largest crude importer is expected to reduce its demand due to stockpile of the commodity amidst gradual opening of its refineries. Brent crude oil thus shed 91 cents to trade at US$44.14 per barrel.

Gold came under pressure in the week’s trade as investors shifted their safe haven focus from the yellow metal to the US dollar as they digested the newly adopted monetary policy of the US Fed. The plan to halt interest rate hike for years to achieve its average inflation target of 2 percent made the greenback a preferable safe haven for investors. Gold thus shed US$29.60 to trade at US$1,945.30 per ounce. 

Cocoa tumbled as favourable climatic conditions in Ivory Coast subdued the likely impact of the joint policy initiatives adopted by Ghana and Ivory Coast to regulate the market. Recent downpour with an average rainfall of 6.9 millimetres in Ivory Coast is expected to improve the October-March production output, hence, adversely affecting the value of the crop on the international market. Cocoa, thus, went down by US$51.50 to close at US$2,640.50 per metric tonne.

Coffee was lifted further by falling inventories and resurgence of the Brazilian Real in the week’s trade.  The continued reduction in the supply of beans from Brazil and Vietnam onto the international commodities market and the 0.72 percent appreciation of the Real supported the soft crop. Coffee added 8 cents to trade at US$1.35 per pound.    

-IGS Financial Services

Ghana Stock Exchange’s Weak Performance Continues in 2020

Ghana Stock Exchange’s Weak Performance Continues in 2020

Trading on the Ghana Stock Exchange ended on a mixed note in May 2020, with the benchmark Composite Index heading further southwards on account of significant selling pressure by the telecommunication giant– MTN Ghana and some consumable stocks.


The GSE Composite Index, thus, recorded a decline of 353 basis points to settle at 1,941.03 points, corresponding to a year-to-date loss of 14.01 percent.

The GSE Financial Stocks Index on the other hand, surged by 12 basis points in the month of trading despite ill-sentiment surrounding the dividend suspension which affected the index in other previous month’s trading. The index stood at 1,843.10 points, corresponding to a year-to-date loss of 8.74 percent.


Market outturns, however, improved significantly in May, with a total of 35.40 million shares valued at GH¢21.11 million exchanging hands. MTN Ghana Ltd led the activity chart with 98.75 percent share of the overall traded volume. Market capitalization, however, dropped by 1.36 percent to GH¢53,542.60 million at end of the month’s trade.

The Ghana Stock Exchange has been on a downward trend for two consecutive years, with the Composite index declining by 0.29 percent and the financial index also declining by 6.79 percent in 2018.

The situation was the same in 2019, with the composite index declining by 12.25 percent and the financial index also declining by 6.23 percent.

In 2020, the Composite index has so far declined by 14.55 percent year to date, with the financial index also declining by 10.86 percent year to date.

Stock price movements

In the week ending May 29, seven equities altered their share prices, with Ecobank Ghana Ltd. emerging as the sole price advancer; it upped by 4 pesewas to trade at GH¢7.49 per share.


On the flip side, NewGold led the pack of six losers; it dipped by GH¢3.20. Benso Oil Palm Plantation and MTN Ghana Ltd also eased by 15 pesewas and 6 pesewas to trade at GH¢2.50 and 55 pesewas per share, respectively. Fan Milk Ltd and Ghana Oil Company Ltd slipped by a pesewa each to settle at GH¢3.38 and GH¢1.58 per share, respectively. Total Petroleum Ghana Ltd also inched down by a pesewa to trade at GH¢2.49 per share.

Government of Ghana treasury securities

For the week, ending May 29, the yield on the 91-Day T-Bill moderated by 4 basis points to settle at 14.02 percent. That on the 182-Day and 364-Day T-Bills however inched up by 2 basis points and 18 basis points as they settled at 14.07 percent and 16.88 percent, respectively.


The 3-year bond, which was issued to both domestic and foreign investors to finance government project and maturing bills, had its yields trimmed by 50 basis points to 18.85 percent.   Yields on other Government of Ghana’s Treasury Notes and Bonds were, however, unchanged.


As largely anticipated, the term structure of Government of Ghana treasury securities sustained its normality. The commitment by the central bank in ensuring that yields on long-dated treasury securities are relatively attractive over their short-dated ones coupled with the safe-haven nature of the money market amidst continued investor confidence in the domestic economy are factors accounting for the normality of the yield curve. It is also anticipated that irrespective of the Government’s demand for funds to service maturing bills and also finance its developmental projects, yields on treasury securities will maintain their downtrend. 

Currency market


On the interbank currency market, the Ghana cedi depreciated against all the three major trading currencies in May. The US dollar advanced on the international currency market as the heightened US-China trade tension rather increased the demand for the safe-haven currency despite disappoiInting consumer data. US Consumer spending for April declined by 13.6 percent; worse than the 6.9 percent dip recorded in March. The Dollar thus rode on this development as it posted a weekly gain of 0.09 to sell at GH¢5.62 per share. The year-to-date depreciation of the cedi thus increased to 1.54 percent.  


The British Pound eased to a two-month low on account of post Brexit worries and speculations of a negative interest rate policy by the Bank of England. Lingering uncertainty over Britain's trading relationship with the EU-Post Brexit cast a dim outlook on the economy as both parties took an entrenched position. The Pound was further knocked down by the growing speculations that the Bank of England intends to adopt a negative interest rates to mitigate the adverse effect of the COVID-19 on UK’s economy. In spite of this, the Pound upped its selling price to GH¢6.92 as the cedi posted a week-on-week depreciation of 1.13 percent. The year-to-date appreciation of cedi thus narrowed to 5.74 percent.

The Euro appreciated on the international currency market on improved investors’ confidence on a recovery of the bloc. The European Union’s unveiling of a 750-billion-euro recovery-comprising 500 billion euros in grants and 250 billion euros in loans to support member states affected by the COVID-19 pandemic buoyed market sentiment in the trading week. The Euro thus traded at GH¢6.24 on the interbank currency market, representing a week-on-week gain of 2.02 percent. The year-to-date depreciation of the cedi thus increased to 0.48 percent.



Brent crude oil posted a marginal gain in May, despite a rekindled trade dispute between the US and China which affected market activities. The upsurge of the energy commodity was driven by the uptick in global demand which resulted in a significant rise in the exportation of crude oil worldwide. Brent crude oil thus added 10 cents to trade at US$35.23 per barrel.

Gold closed the trading month lower despite a strong rebound associated with the heightened trade tension and downbeat unemployment data from the US. The negative closure of the yellow metal stemmed from the general upbeat sentiment which characterized the global market following the reopening of some economies which stimulated risk taking activities to dim the appeal for the yellow metal. Gold thus shed US$9.40 to trade at US$1,726.10 per ounce.

Cocoa surged on the international commodities market as the unfavorable climatic conditions inhibiting production in top grower – Ivory Coast contributed to the upward review of its pricing. Ivory Coast recorded lower volumes of rainfall than required to support cocoa production as the current rainfall of 23.8 millimeters (mm) fell significantly below the 5-year average of 43.3 millimeters (mm). Cocoa thus gained US$36.50 to trade at US$2,430.50 per metric tonne.

Coffee dropped to its lowest in three-and-half months on account of bumper harvest in Brazil and the weakening of the Brazilian real against major international currencies. Coffee traded below the US$1.00 benchmark after losing 4 pesewas to sell at 99.92 cents per pound.

Source IGS Financial Services Limited

2018 market commentary; Turmoil in the banking sector weighed heavily on the markets

2018 market commentary; Turmoil in the banking sector weighed heavily on the markets

At the end of January 2018, Bloomberg reported that the Ghana Stock Exchange Composite Index (GSE-CI) gained 19

The revisions to the Basel III regulatory reforms were confirmed by the Basel Committee on Banking Supervision (BCBS)