KEY HEADLINES & INSIGHTS

Ghana’s Inflation Falls to 13.7%—Lowest Since 2021

Ghana’s annual inflation dropped to 13.7% in June 2025, its lowest since December 2021. This marks a 470 basis point decline from 18.4% in June 2024, reflecting continued price stability, according to the Ghana Statistical Service.

Diageo Sells Entire Guinness Ghana Stake to Castel

On 3rd July 2025, Diageo Holdings Netherlands B.V. sold its 80.4% stake in Guinness Ghana Breweries PLC to the Castel Group. The FoP transaction involved over 247 million shares, ending Diageo’s ownership in GGBL, in line with GSE Listing Rule 55.

Moody’s Downgrades Afreximbank Again

Moody’s has downgraded Afreximbank from Baa1 to Baa2, citing weak asset performance and limited funding access. This is the second downgrade in four weeks. The outlook was revised from negative to stable.

Ghana Gold Coin Prices Updated

As of 3rd July 2025, the Bank of Ghana priced the 1 oz gold coin at GH₵36,106.37, with 0.50 oz at GH₵18,389.54 and 0.25 oz at GH₵9,552.30, reflecting current market demand.

PRIMARY DEBT MARKET ISSUANCE WEEK

Yields on Government of Ghana (GoG) treasury bills saw a marginal decline across all tenors last week. The 91-day bill fell by 12.69 basis points to 14.57%, indicating relative stability in short-term borrowing costs. Similarly, the 182-day and 364-day bills dropped by 23.14 and 48.85 basis points, respectively, closing at 15.02% and 15.17%. 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₵2.09 billion for the week, reflecting a modest increase from the GH₵2.07 billion reported in the previous week. This uptick, though marginal, indicates a steady investor appetite for fixed income securities, particularly government-backed instruments.

The market opened the week on a strong note, with a turnover of GH₵590.6 million on the first trading day. This performance was largely driven by heightened demand for Treasury Bills and newly issued Government of Ghana (GoG) Notes and Bonds, which continue to attract investors seeking low-risk, stable returns.

However, market liquidity dipped midweek, with volumes falling to GH₵231.08 million on July 1, reflecting a temporary slowdown in trading activity. This decline may have been influenced by investor caution or timing around settlement cycles. Encouragingly, the market rebounded on July 2, with trading volumes rising to GH₵510.35 million, supported by renewed interest in Treasury securities and fresh GoG issuances.

The week concluded on a strong note, with trading volumes climbing to GH₵756 million, marking the highest daily turnover for the week. This late-week surge suggests improved investor sentiment and confidence in the fixed income market, underpinned by consistent demand for government securities.

Week's Yield Curve

EQUITY MARKET

Trading activity on the local stock exchange turned bullish this week, with total share volume increased by 3785.62% to 255,388,169 shares, down from 5,785,849 shares posted the previous week. The total traded value also increased significantly, settling at GH₵1.29 billion compared to GH₵27.82 million last week, reflecting an increase in high-value transactions. Market capitalization posted a marginal weekly gain, closing at GH₵138.55 billion, down from GH₵137.30 billion.

Regarding market indices, the GSE Composite Index (GSE-CI) closed at 6,347.47 showing a 1.58% week-on-week gain, a 1.58% monthly gain, and a substantial year-to-date gain of 29.84%.

Moreover, the GSE Financial Stocks Index (GSE-FSI) increased to 3,405.34 points, making it a weekly gain of 0.87%, a monthly gain of 0.87%, and a year-to-date gain of 43.03%.

Weekly Gainers & Laggards

EQUITY MARKET MOST TRADED STOCKS

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 from $3,332.5 to $3,368.10 per troy ounce week-on-week (w/w). The precious metal posted a 1.80% weekly gain.

Meanwhile, Brent crude oil futures posted a 0.77% weekly gain increasing from $67.77 to $68.29 per barrel. However, gains were limited by expectations that OPEC+ will agree to bring back another 411,000 bpd in August when the group meets on Sunday.

Cocoa futures declined this week, decrease to $8,780 per ton from last week’s $9,231, posting a 4.89% loss. Prospects of improved cocoa supplies from Ghana, the world's second-largest grower of the key chocolate ingredient, have weighed on prices over the past two weeks. However, volatile weather continues to pose downside risks

Source(s): Yahoo Finance, Trading Economics

CURRENCY MARKET

The Ghanaian Cedi (GHS) has shown mixed performance against major foreign currencies compared to the previous week. Specifically, it has lost GHS0.01 against the US Dollar (USD), gained GHS0.06 against the British Pound (GBP), and lost GHS0.06 against the Euro (EUR), compared to the previous week.

Source(s): Bank of Ghana

DISCLAIMER: The information contained in this weekly update on the financial markets is intended for informational purposes only and should not be construed as financial, investment or other professional advice. The data are derived from internal and external sources that FFC Research finds reliable. FFC Research assumes no responsibility or liability for any actions taken based on the information contained in this report.

Research Analyst - Cedric Asante | Email: cedric.asante@firstfinancecompany.com