Demand for T-Bills drops by 19.18%
Investor demand for Treasury bills in Ghana has declined by 19.18% compared to the previous week’s auction, as the government secured GH₵5.3 billion, falling short of its GH₵6.56 billion target.
This marks the fifth consecutive auction where the government has not met its target.
Despite the undersubscription, all submitted bids for the 91-day, 182-day, and 364-day Treasury bills were fully accepted during the auction held last Friday.
The yield on the 91-day T-bill increased slightly by 1 basis point, closing at 24.83%, while the 182-day and 364-day T-bill yields remained unchanged at 26.76% and 27.86%, respectively.
In the secondary market, trading volumes on the Ghana Fixed Income Market (GFIM) dropped by 32.9% over the past week, totaling GH₵2.28 billion.
Treasury bills dominated the trading activity, accounting for 61.28% of the total market activity.
New Government of Ghana (GoG) Notes and Bonds contributed 23.79%, while Sell/Buy Back Trades made up 9.52%.
The Ghanaian Cedi also weakened against major foreign currencies during the week under review.
The Cedi depreciated by 0.81% against the Dollar, 0.60% against the British Pound, and 0.94% against the Euro.
The Cedi closed the week trading at midrates of GH₵15.0919 to the Dollar, GH₵19.2565 to the Pound Sterling, and GH₵16.4797 to the Euro.
Indicative rates from the open market showed the Cedi at midrates of GH₵15.4283 to the Dollar, GH₵19.6685 to the Pound Sterling, and GH₵16.8628 to the Euro.
The Ghana Stock Exchange (GSE) experienced a downturn during the week, with the GSE Composite Index falling by 3.17%, largely due to a decline in MTN Ghana’s (MTNGH) share price. The index closed the week at 4,440.78 points, reflecting a year-to-date return of 41.87%.
Trading activity slowed, with 578,885 shares traded, amounting to a turnover of GH₵12.93 million, a 21.26% decline from the previous week.
In contrast, the Exchange Traded Fund, NewGold (GLD), and Benso Palm Plantation (BOPP) saw gains of 1.46% and 0.09%, closing the week at GH₵367.80 and GH₵23.07 per share, respectively.
However, MTNGH’s share price dropped by 4.58%, closing at GH₵2.29 per share. Looking ahead, financial stocks and the ICT sector are expected to influence the index’s performance in the upcoming week.
