Govt raises GH₵5.2bn from T- Bills

– Despite under-subscription

INVESTOR interest in Treasury bills (T-bills) saw a notable increase during the latest auction, with the government raising GH₵5.2 billion. This amount, however, fell short of the GH₵6.5 billion target, representing a 19.89% under-subscription rate.

The auction, held last Thursday, witnessed full acceptance of bids across all tenors—91-day, 182-day, and 364-day T-bills. The yields on these instruments continued their upward trajectory:

• 91-day T-bill: Increased by 24 basis points to reach 27.60%.
• 182-day T-bill: Rose by 22 basis points to 28.32%.
• 364-day T-bill: Marginally increased by 3 basis points to 29.91%.

Trading Activity and Market Trends

Trading volumes on the Ghana Fixed Income Market (GFIM) for the week totalled GH₵4.11 billion, a 28.7% decline compared to the previous week. Treasury bills dominated the market, accounting for 71.92% of the total volumes traded. The breakdown of other market segments was as follows:

• Sell-buyback trades: 24.58%
• New Government of Ghana notes and bonds: 2.07%
• Corporate bonds: 1.42%

Currency Performance

The Ghanaian cedi showed strong appreciation against major currencies during the week, supported by stable market conditions:

• US Dollar: Strengthened by 2.69%, closing at GHS 14.87 (mid-rate).
• British Pound: Gained 2.27%, closing at GHS 18.96.
• Euro: Rose by 2.62%, closing at GHS 15.71.

In open-market indicative rates, the cedi traded at GHS 14.90 per US Dollar, GHS 18.96 per British Pound, and GHS 15.70 per Euro.

Stock Market Performance

The Ghana Stock Exchange (GSE) recorded a positive week, with the GSE Composite Index gaining 0.94% to close at 4,738.49 points, reflecting a year-to-date return of 51.38%.

Key drivers of the index’s performance included:

• Ecobank Transnational Incorporated (ETI): Gained 6.90%, closing at GHS 0.31 per share.
• MTN Ghana (Scancom PLC): Increased by 1.27%, closing at GHS 2.40 per share.

However, the gains were partially offset by:

• New Gold ETF: Declined by 2.33%, closing at GHS 388.59.
• Atlantic Lithium: Dropped by 0.16%, closing at GHS 6.13 per share.

Market activity soared, with a 2,031.69% increase in volumes traded, reaching 16,513,095 shares, valued at GHS 7.57 million.

Outlook Looking ahead, analysts anticipate financial stocks and the ICT sector will continue to drive the GSE’s performance, while the Treasury bill market is expected to remain attractive due to competitive yields, despite challenges in meeting government borrowing targets.