Ghana Cedi Loses Ground to Other Trading Currencies In the Forex Market
Selling for $1 to GH¢5.60, the US Dollar appreciated by 1.01% on the interbank currency market. This brings the rise in the year-to-date depreciation of the Ghana Cedi to 1.20%. The British Pound on the other hand rose following the positive trial results on patients with the Covid-19 test drug- Remdesvir. With £1 traded for GH¢7.06 on the interbank currency market, it showed an appreciation of 3.71% and the year-to-date appreciation of the Cedi rounded up to 3.65%.
The Euro also appreciated against other major currencies and this was largely supported by a weaker dollar which made the Euro to record a week-on-week gain of 2.23% and sold at €1 to GH¢6.13 on the interbank currency market with the year-to-date appreciation reducing to 1.36%.
The Brent Crude Oil rebounded following a lower than expected inventory buildups recording in the US and an optimistic approach based on the reopening of global economies. The US Crude Oil inventory rose by 9million barrels lower than the forecasted 10.6million for the week ending April 24 and this created fear of a global oil glut. The Brent Crude Oil traded for US$25.68 per barrel.
Gold on the other hand closed in red based on renewed hopes of a breakthrough on a vaccine for the coronavirus. The commodity lost some of it value with news of successful trails for Covid-19 treatment drug Remdesvir, this traded at US$1,692.40 per ounce after shedding US$43.20.
The price of cocoa went up on the international commodities market as there were reports of favorable climate condition in countries like Cote d’Ivoire and a shortage in quality beans. Cocoa added US$68.59 to trade at US$2,409.50 per metric tonne. Coffee recorded a gain that have being ongoing for weeks now and this is partly due to the reduction in the supply of beans from Brazil and Colombia due to the poor climatic condition. The commodity sold for US$1.06 per pound.
Ghana Stock Exchange
Even with an impressive financials from MTN, Société Générale Ghana LTD, Cal Bank LTD and GCB Bank LTD in the first quarter, the Accra Bourse was unable to close in the gain as there were negative reactions by investors to the imposition made by the Central Bank to suspend dividend in a bid to reduce the effect of the Covid-19 pandemic on firm performance. Due to this, the GSE Composite Index recorded a weekly loss of 2.41% to settle at 2100.74 points while the GSE Financial Stock Index recorded a weekly gain of 0.80% to settle at 1,906.41 points. At the end of the week, market turnout was 27.41 million shares valued at GH¢19.72 million with MTN Ghana leading the activity chart with 99.13% share of the overall traded volume. Market Capitalization declined by 0.97% to settle at GH¢55,200.79 million.
In addition, during the week under review, government treasury Securities went up with the total bids tendered exceeding the estimated target for the week and the government hope this continues into the following week.
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