Ghana’s financial markets presented a mixed performance during the week ending May 29, 2026, with stronger investor demand for Treasury bills, a continued rally on the Ghana Stock Exchange (GSE), and renewed pressure on the Ghana cedi against the major international currencies.
While investor appetite for government securities improved significantly compared to the previous week, the government still fell short of its borrowing target.
At the same time, the stock market continued its impressive run, posting one of the strongest year-to-date returns among African markets, even as trading activity slowed considerably.
The foreign exchange market, however, saw the cedi weaken further against the US dollar, British pound and euro.
Govt misses target
Data from the Ghana Fixed Income Market (GFIM) showed that investor demand for Treasury bills rose substantially during the latest auction.
Total bids submitted increased from GH¢4.22 billion in the previous auction to GH¢4.92 billion, reflecting growing investor interest in short-term government securities.
Despite the improved demand, the amount raised remained below the government’s target of GH¢5.89 billion.
The Treasury received GH¢4.92 billion in bids, resulting in an undersubscription of approximately 16.56%.
The auction results indicated strong acceptance levels across the three tenors offered.
Government accepted 99.82% of all bids submitted for the 91-day Treasury bill, 94.13% of bids for the 182-day instrument, and all bids submitted for the 364-day Treasury bill.
Market analysts say the high acceptance rates demonstrate the government’s willingness to secure available funding despite falling short of its target.
Looking ahead, the government plans to return to the market seeking GH¢5.44 billion in its next Treasury bill auction.
Interest rates edge up
The latest auction also recorded slight movements in interest rates.
The yield on the 91-day Treasury bill increased by eight basis points to 4.99%, while the 364-day Treasury bill rose by nine basis points to 10.46%.
The 182-day Treasury bill rate remained unchanged at 7.04%.
The increase in short-term yields may indicate efforts by government to attract more investor participation amid heightened borrowing requirements and evolving market conditions.
Secondary bond market activity slows
While demand for Treasury bills increased in the primary market, activity on the secondary fixed-income market weakened significantly.
Trading volumes on the Ghana Fixed Income Market declined by 39.7% week-on-week to GH¢4.18 billion.
Treasury bills remained the most actively traded instruments, accounting for 55.97% of total market activity.
Sell-Buy Back transactions represented 32.60% of trades, while Domestic Debt Exchange Programme (DDEP) bonds accounted for 11.35%.
Corporate bonds continued to occupy a very small segment of the market, representing only 0.08% of total trading activity.
The decline in secondary market volumes suggests a more cautious trading environment despite sustained investor interest in government securities.
Cedi weakens against major trading currencies
The Ghana cedi came under renewed pressure during the review period, depreciating against all three major international currencies.
According to the Bank of Ghana’s interbank mid-rates, the cedi lost 0.90 per cent against the US dollar, closing the week at GH¢11.73 to the dollar.
This brought the local currency’s year-to-date depreciation against the dollar to 10.91%.
Against the British pound, the cedi depreciated by 1.12% to close at GH¢15.80, pushing year-to-date losses to 11.02%.
The local currency also weakened against the euro by 1.52%, ending the week at GH¢13.69 per euro, with cumulative year-to-date depreciation reaching 10.38%.
Open market quotations reflected slightly weaker levels, with indicative mid-rates closing at GH¢11.84 per dollar, GH¢15.96 per pound and GH¢13.80 per euro.
The depreciation comes after a period of relative currency stability and may reflect increased demand for foreign exchange from importers and businesses.
Stock market continues bullish momentum
Despite the weakness in the currency market, the Ghana Stock Exchange maintained its remarkable upward trajectory.
The GSE Composite Index closed the week at 14,354.14 points, delivering a year-to-date return of 63.67%.
The market’s strong performance was largely driven by gains recorded in shares of Zenith Bank Ghana (ZEN), Ecobank Transnational Incorporated (ETI), NewGold ETF (GLD) and TotalEnergies Marketing Ghana (TOTAL).
Market analysts note that the sustained rally reflects growing investor confidence in listed equities and improving corporate performance across several sectors.
Zenith Bank leads gainers
Among the top-performing stocks for the week, ZEN emerged as the strongest gainer.
The stock advanced by 18.49% to close at GH¢11.47, extending its year-to-date return to an impressive 129.40%.
ETI followed with a 4.51% gain to close at GH¢1.39, bringing its year-to-date return to 80.52%.
GLD appreciated by 0.99% to GH¢501.92, while TOTAL gained 0.27% to close at GH¢33.00.
These gains helped sustain the positive momentum of the broader market index.
Some counters record losses
Not all stocks participated in the rally.
Fan Milk Limited (FML) slipped by 0.08% to close at GH¢13.32 despite maintaining a year-to-date gain of 66.50%.
Republic Bank Ghana (RBGH) declined by 1.70% to GH¢5.20, although it remains one of the market’s strongest performers with a year-to-date return of 300%.
Atlantic Lithium Ghana (ALLGH) shed 3.07% to close at GH¢8.20, while MTN Ghana (MTNGH) fell 3.42% to GH¢6.50.
CAL Bank (CAL) recorded the steepest decline among the major counters, losing 3.95% to close at GH¢0.73.
Trading activity slows sharply
Although the market remained bullish, trading activity weakened considerably.
The volume of shares traded fell by 69.86% from 58.16 million shares in the previous week to 17.53 million shares.
Despite the sharp decline in volumes, the total value traded during the week amounted to approximately GH¢112.66 million.
Analysts expect financial stocks and companies within the information and communications technology sector to continue playing a central role in determining the direction of the market in the coming week.
Outlook
The latest market performance highlights the contrasting dynamics shaping Ghana’s financial sector.
The Treasury market continues to attract strong investor interest, although government borrowing targets remain difficult to achieve.
The cedi faces renewed exchange rate pressures, while the stock market continues to deliver exceptional returns supported by strong performances from banking, ICT and investment-related stocks.
Investors will be closely watching the government’s next Treasury bill auction, movements in the foreign exchange market and corporate earnings developments on the Ghana Stock Exchange to gauge the direction of the markets in the weeks ahead.
