KEY HEADLINES & INSIGHTS

Bank of Ghana Delivers Historic 300bps Rate Cut as Inflation Falls Sharply

The Bank of Ghana has slashed its benchmark interest rate by a record 300 basis points to 25%, marking its most aggressive rate cut ever as inflation cools significantly. This move, the first since September 2024, reflects renewed confidence in the country’s disinflation trend.

Gold-Heavy Economies in Africa Face Currency Risk if Bullion Prices Tumble — BMI

Ghana, Tanzania, and Uganda face the highest currency risk in Africa if gold prices fall sharply, as bullion forms a major part of their export revenues—up to 45% in Ghana’s case. A price slump could weaken foreign exchange inflows and hurt non-gold reserves, according to Fitch Solutions’ BMI unit.

MTN Ghana’s H1 2025 Earnings Soar as Service Revenue Rises 40%

MTN Ghana posted a 55.8% increase in profit after tax to GHS 3.6 billion in the first half of 2025, driven by robust performance in its data, mobile money, and voice services. Service revenue climbed 40% to GHS 11.3 billion, underscoring its leading position in the telecom market.

Ghana Gold Coin Pricing Update

1 oz Now Selling at GH₵ 36,228.31 with 0.50 oz at GH₵18,452.78

and 0.25 oz at GH₵9,586.49 as of 25th July 2025. (Bank of Ghana, 2025)

PRIMARY DEBT MARKET ISSUANCE WEEK

Yields on Government of Ghana (GoG) treasury bills saw significant decline across all tenors last week. The 91-day bill dipped by 54 basis points to 10.29%, indicating reduction in short-term borrowing costs. Similarly, the 182-day and 364-day bills declined by 87 and 106 basis points, respectively, closing at 12.35 % and 13.25%.

Source(s): Bank of Ghana

GHANA FIXED INCOME MARKET VOLUME TRADED

The Ghana Fixed Income Market (GFIM) recorded a total trading volume of GH₵4.65 billion at the week's close, reflecting an increase from the GH₵4.32 billion reported in the previous week. The total number of transactions recorded was 5,374, with Treasury bills dominating the market and accounting for 95.05% of the trades. Meanwhile, New Government of Ghana (GoG) Notes and Bonds contributed 3.94% to the total trading activity.

The fixed income market opened the week on a strong note, recording a turnover of GH₵1,038 million, attributed largely to Treasury Bills and New Government of Ghana (GoG) Notes & Bonds.

Market liquidity dipped to GH₵920.6 million on July 29, reflecting declined participation. Activity rebounded to GH₵1,106 million on July 30, with trading focused mainly on Treasury securities and New GoG issuances. Turnover dipped to reach GH₵763.7 million on July 31. The week ended on a slightly stronger note, compared to the previous day to reach GH₵817.4 million attributed to mainly Bank of Ghana bills and Treasury Bills.

Week's Yield Curve

EQUITY MARKET

Trading activity on the local stock exchange turned bullish this week, with total share volume increased by 71% to 60,828,644 shares, down from 35,541,826 shares posted the previous week. The total traded value also increased by 97%, settling at GH₵275.42 million compared to GH₵140.05 million last week, reflecting an increase in high-value transactions. Market capitalization posted a 2.77% weekly gain, closing at GH₵146.13 billion, down from GH₵142.18 billion.

Regarding market indices, the GSE Composite Index (GSE-CI) closed at 6,994.45 showing a 4.82% week-on-week gain, a 0.03% monthly gain, and a substantial year-to-date gain of 43.08%.

Week's Equities Top Gainers & Laggards

Moreover, the GSE Financial Stocks Index (GSE-FSI) settled at 3,428.15 points, making it a weekly gain of 0.46%, a monthly gain of 0.03%, and a year-to-date gain of 43.99%.

EQUITY MARKET MOST TRADED STOCKS

Source(s): Ghana Stock Exchange

TOP PERFORMING AFRICAN STOCK INDICES YEAR-TO-DATE

Source(s): African Markets

COMMODITY MARKET

This week, the commodities market posted mixed performance, driven by notable price fluctuations. Gold prices increased marginally from $3,334 to $3,347.70 per troy ounce week-on-week (w/w). The precious metal posted a 0.41% weekly gain.

Meanwhile, Brent crude oil futures posted a 1.8% weekly gain marginally increasing from $68.44 to $69.67 per barrel, amid reports that OPEC and its allies may soon agree to increase production. Sources familiar with OPEC+ discussions said a deal to raise output by 548,000 barrels per day in September could be finalized as early as Sunday, though talks on the exact volume are ongoing.

Cocoa futures posted a decrease settling at $8,232 per ton from last week’s $8,329, posting a 1.16% loss. Concerns about dry weather in West Africa are also bullish for cocoa prices. According to the European Centre for Medium-Range Weather Forecasts, rainfall in the Ivory Coast and Ghana this season remains below the 30-year average, and combined with high temperatures, risks hurting cocoa pod development for the main crop harvest that starts in October.

Source(s): Yahoo Finance, Trading Economics

CURRENCY MARKET

The Ghanaian Cedi (GH₵) has shown mixed performance against major foreign currencies compared to the previous week. Specifically, it has lost GH₵0.05 against the US Dollar (USD) and gained GH₵0.13 against the Euro (EUR), compared to the previous week. Moreover, it gained GH₵0.11 against the British Pound (GBP).