T-Bill yields rise as govt raises GH₵6.41bn in auction

 

Investor participation in the recent Treasury Bill auction showed improvement, but the government raised GH₵6.41 billion falling short of its GH₵6.9 billion  target by 7%.

Despite the under-subscription, all bids for the 91-day, 182-day, and 364-day treasury bills were accepted.

Yields rose across all maturities during the auction. The 91-day treasury bill yield increased by 22 basis points to 27.19%, the 182-day bill rose by 20 basis points to 27.99%, and the 364-day bill climbed by 61 basis points to 29.82%.

Fixed Income Market Gains Momentum

The Ghana fixed income market recorded a 65.6% increase in trading volumes last week, reaching 5.17 billion cedis. Treasury bills dominated the activity, contributing 71.23% of the total traded volumes. New government notes and bonds accounted for 22.1%, while sell-buyback trades made up 6.65%.

Cedi Strengthens Against Major Currencies

The Ghanaian cedi appreciated against the US dollar, British pound, and euro over the past week. It strengthened by 1.11% against the dollar, 2.04% against the pound, and 2.64% against the euro. The cedi closed at interbank mid-rates of 15.80 cedis per dollar, 19.77 cedis per pound, and 16.42 cedis per euro. On the open market, the rates were slightly lower, at 15.77 cedis per dollar, 19.85 cedis per pound, and 16.42 cedis per euro.

Ghana Stock Exchange Sees Gains Amid Mixed Performance

The Ghana Stock Exchange (GSE) Composite Index rose by 0.15% to close at 4,600.65 points, delivering a year-to-date return of 49.04%. Gains in Ecobank Transnational Incorporated (ETI), CalBank PLC, Ecobank Ghana PLC, and New Gold outpaced losses in Enterprise Group PLC.

ETI’s share price jumped 4% to close at 26 pesewas per share, while CalBank gained 3.03% to end at 34 pesewas per share. Ecobank Ghana recorded a modest increase of 0.15%, closing at 6.50 cedis per share. Exchange-traded fund GLD surged by 4.05%, finishing at 410.90 cedis. However, Enterprise Group’s stock declined by 0.50%, closing at 1.98 cedis per share.

Market activity saw a 12.19% drop in trading volumes to 1,252,403 shares, with a total value of 3.44 million cedis. Analysts expect financial and ICT sector stocks to influence the index’s performance in the coming weeks.