Investor interest in T-Bills surge

INVESTOR interest in Ghana’s treasury bills surged during the recent auction, with demand exceeding government expectations. The government successfully raised GH₵8.9 billion, surpassing its GH₵6.3 billion target by a significant 39.95% oversubscription rate.

Treasury Bill Performance

The auction witnessed full acceptance of all bids across the 91-day, 182-day, and 364-day treasury bills, reflecting growing investor confidence in short-term government securities.

• 91-day treasury bill: Yield rose by 8 basis points to 28.42%.
• 182-day treasury bill: Yield increased marginally by 1 basis point to 28.97%.
• 364-day treasury bill: Yield climbed by 11 basis points to 30.29%.

Fixed-Income Market Highlights

Trading activity on the Ghana Fixed-Income Market recorded a slight dip, with volumes decreasing by 0.2% to GH₵3.5 billion. Treasury bills dominated the market, accounting for 65.96% of the total volume.

• Sell-buy-back trades: Represented 19.25% of total activity.
• New Government of Ghana notes and bonds: Contributed 14.77%.
• Corporate bonds: Accounted for a minimal 0.01%.

Currency Market Trends

The Ghanaian cedi depreciated against major international currencies during the week under review, as per Bank of Ghana interbank mid-rates:

• US Dollar: Declined by 1.34%, closing at GH₵14.95.
• British Pound: Fell by 1.35%, ending at GH₵18.23.
• Euro: Dropped by 2.04%, settling at GH₵15.39.

Open market indicative rates showed the cedi trading at GH₵14.98 to the dollar, GH₵18.23 to the pound, and GH₵15.09 to the euro.

Ghana Stock Exchange (GSE) Update

The GSE Composite Index gained 7.6%, closing at 5,057.20 points with a year-to-date return of 3.45%. This rise was fueled by price gains in several key stocks:

• MTN Ghana (Scancom PLC): Up by 5.58% to GH₵2.60 per share.
• Goyal: Increased by 3.29% to GH₵1.57 per share.
• Cal Bank: Up by 2.70% to GH₵0.38 per share.
• New Gold: Rose by 1.64% to GH₵408.99 per share.
• Total Petroleum: Gained 1.45%, closing at GH₵13.31 per share.
• GCB: Increased by 0.63% to GH₵6.41 per share.

Market activity surged, with trading volumes increasing by 822.03% to 4,308,065 shares, amounting to a total value of GH₵13.8 million. Analysts anticipate that financial stocks and the ICT sector will significantly influence the index’s performance in the coming week. This robust performance across financial markets underscores renewed confidence in Ghana’s economy, bolstered by strong investor interest and improved market dynamics.