KEY HEADLINES & INSIGHTS

Fuel prices in Ghana are projected to decline further in the first pricing window of June, as the cedi strengthens against the US dollar.The strengthening of the cedi remains the main driver behind the sustained downward adjustment in petroleum product prices.

At its 124th meeting (21–23 May 2025), the MPC kept the policy rate at 28.0% and, effective 5 June, amended the Dynamic Cash Reserve Ratio (CRR) to require banks to hold reserves in the same currency as their deposits. (Bank of Ghana, 2025)

The Ghana Export-Import Bank (GEXIM) has signed a Memorandum of Understanding (MoU) with the Saudi EXIM Bank to further help the government to explore opportunities, including extension of credit lines, project financing and issuance of transactional guarantees.

Ghana Gold Coin Pricing Update: 1 oz Now Selling at GH₵35,696.75 with 0.50 oz at GH₵18,183.97 and 0.25 oz at GH₵9,448.66 as of 30th May 2025. (Bank of Ghana, 2025)

PRIMARY DEBT MARKET ISSUANCE WEEK

Yields on Government of Ghana (GoG) treasury bills saw a slight decline across all tenors last week. The 91-day bill fell by 13 basis points to 14.79%, indicating relative stability in short-term borrowing costs. Similarly, the 182-day and 364-day bills dropped by 7 and 9 basis points, respectively, closing at 15.49% and 15.91%. This decline reflects a moderation in GoG’s borrowing costs amid ongoing macroeconomic reforms.

Source(s): Bank of Ghana

GHANA FIXED INCOME MARKET VOLUME TRADED

The Ghana Fixed Income Market (GFIM) recorded a total trading volume of GH₵4.82 billion at the week's close, reflecting a decline from the GH₵4.16 billion reported in the previous week. The total number of transactions recorded was 12,631, with Treasury bills dominating the market and accounting for 97.78% of the trades. Meanwhile, New Government of Ghana (GoG) Notes and Bonds contributed 1.27% to the total trading activity.

The fixed income market opened the week on a weak note, recording a turnover of GH₵302.9 million, attributed largely to Treasury Bills.

Market liquidity peaked at GH₵1,381.6 million on May 27, reflecting high participation. However, activity tapered off to GH₵1,134.6 million on May 28, with trading focused mainly on Treasury securities and recent GoG issuances. Turnover rebounded slightly to GH₵1,253.4 million on May 29 before declining sharply to GH₵745.6 million by May 30, signaling a dip in market momentum toward the week's end.

Week's Yield Curve

EQUITY MARKET

Trading activity on the local stock exchange turned bearish this week, with total share volume plunging by 22.18% to 1,804,728 shares, down from 2,318,985 shares the previous week. The total traded value also declined sharply by 26.6%, settling at GH₵13.08 million compared to GH₵17.82 million last week, reflecting a drop in high-value transactions. Market capitalization posted a weekly loss, closing at GH₵136.55 billion, down from GH₵139.30 billion.

Regarding market indices, the GSE Composite Index (GSE-CI) closed at 6150.31 showing a 3.2% week-on-week loss, a 0.9% monthly gain, but a substantial year-to-date gain of 25.81%.

Moreover, the GSE Financial Stocks Index (GSE-FSI) increased to 3,217.14 points, making it a weekly gain of 1.32%, a monthly gain of 3.37%, and a year-to-date gain of 35.13%.

Week's Equities Top Gainers & Laggards

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 declined from $3,363.60 to $ 3,288.9 per troy ounce week-on-week (w/w). The precious metal posted a 2.22% weekly loss.

Meanwhile, Brent crude oil futures posted a 1.36% weekly loss declining from $64.78 to $63.90 per barrel, s strong economic data countered demand for safety due to fresh risks of trade wars.

Cocoa futures inched this week, marginal increase to $9,791 per ton from last week’s $9,764. This represents a weekly gain of 0.28%. Adding to the downward pressure, ICE-monitored cocoa inventories held in US ports continued to rise, climbing to an 8-month high of 2,187,574 bags as of May 27. However, slow port arrivals in top grower Ivory Coast continue to cause concern, while the mid-crop harvest struggles with quality issues.

Source(s): Yahoo Finance, Trading Economics

CURRENCY MARKET

The Ghanaian Cedi (GHS) has shown significant appreciation against major foreign currencies compared to the previous week. Specifically, it has gained 6.12% against the US Dollar (USD), 6.29% against the British Pound (GBP), and 5.96% against the Euro (EUR).

Source(s): Bank of Ghana