In a remarkable display of investor confidence, the Government of Ghana has raised GH₵3.5 billion in its latest treasury bills auction, surpassing its GH₵3 billion target.
The oversubscription rate stood at an impressive 17.07%, reflecting increased demand for government securities.
During the auction held last Friday, the government accepted all bids tendered for the 91-day, 182-day, and 364-day treasury bills.
Yields continued their downward trend, with the 91-day bill declining by 10 basis points to clear at 25.45%, while the 182-day and 364-day bills dipped by 25 basis points to clear at 27.40% and 28.00% respectively.
The robust demand for treasury bills was evident in the secondary market as well, with trading volumes on the Ghana Fixed Income Market (GFIM) totaling GH₵2.1 billion, albeit showing a 33.2% decline from the previous week. Treasury bills dominated trading activity, accounting for 54.65% of the total volume traded.
Despite the positive performance in the fixed income market, the Ghanaian Cedi experienced a decline against major currencies. The Cedi depreciated by 1.62% against the US Dollar, 2.28% against the Pound Sterling, and 2.39% against the Euro.
The midrates closed the week at GH₵13.4161 to the dollar, GH₵16.8392 to the Pound Sterling, and GH₵14.4524 to the Euro.
In contrast, the Ghana Stock Exchange (GSE) Composite Index witnessed a significant increase of 4.17% during the week under review. MTNGH and BOPP contributed to a 146.16 points surge in the index, which closed at 3,650.41 points with a year-to-date return of 16.62%.
However, market activity in terms of traded volumes experienced a notable decrease, with 992,584 shares valued at GH₵3.5 million traded, reflecting a 76.03% decline compared to the previous week.
Looking ahead, Tesah Capital projects that financial stocks and Information Communication Technology (ICT) sectors will continue to drive the performance of the index this week, signaling optimism among investors in the Ghanaian financial market.
