Ghana Market Update: Stocks Gain as Cedi Faces Pressure and Inflation Edges Up

Ghana’s financial markets enter Friday with a mixed picture: the main stock index advanced in Thursday’s session, financial stocks declined, and the cedi remained under pressure from demand for dollars.

This morning’s update uses the latest available figures ahead of Friday’s trading.

The Ghana Stock Exchange Composite Index closed on October 8 at 14,024.18 points, up 63.48 points from the previous session. The exchange reported a year-to-date gain of 59.91 per cent.

However, the Financial Stocks Index fell from 7,521.47 to 7,418.29 points, a decline of 103.18 points, showing that financial shares moved against the broader market’s upward direction. (gse.com.gh⁠)

On the currency market, Reuters reported on Thursday that the cedi traded at GH¢11.7650 to the US dollar, compared with GH¢11.7100 a week earlier.

Demand from energy and manufacturing businesses was weighing on the currency. A trader cited by Reuters expected continued pressure, pointing to unmet dollar demand during a GoldBod foreign-currency sale. The quoted rate is a Thursday market reference; rates offered by banks and forex bureaux may differ. (reuters.com⁠)

The latest inflation figures also showed a modest increase. Ghana’s annual inflation rose to 5.2 per cent in September, from 5.0 per cent in August, according to Ghana Statistical Service data reported by Graphic Online.

Food inflation increased from 3.0 per cent to 4.0 per cent, while non-food inflation eased to 6.2 per cent. Month-on-month inflation stood at 1.1 per cent, indicating that consumer prices continued to rise despite the relatively low annual rate. (graphic.com.gh⁠)

In the domestic debt market, COCOBOD secured GH¢3.39 billion through a short-term debt issue to support cocoa purchases. The securities carried an 11 per cent interest rate and mature in June 2027.

The amount raised fell short of the GH¢4 billion target. The proceeds are expected to fund licensed buying companies purchasing cocoa from farmers. (reuters.com⁠)

Friday’s session will show whether the broader stock market can extend Thursday’s gains. Currency demand and the latest inflation increase remain key developments for businesses assessing import costs and household spending.