Investor interest in Treasury bills fell significantly in the latest auction, with the government managing to raise only GH₵3.67 billion, far below its GH₵5.98 billion target.
This led to a substantial 38.56% undersubscription rate. Despite this shortfall, all submitted bids for the 91-day, 182-day, and 364-day Treasury bills were fully accepted.
The yields on Treasury bills continued their downward trend.
The 91-day T-bill yield dropped by 19 basis points to 25.46% whiles the 182-day T-bill yield declined by 12 basis points to 26.80%.
The 364-day T-bill yield fell by 16 basis points to 28.52%.
Ghana fixed income market sees modest growth
The Ghana Fixed Income Market (GFIM) experienced a 2.2% increase in trading volumes over the past week, reaching GH₵3.64 billion.
Treasury bills dominated the market, making up 66.7% of the total market volume.
Sell and buy-back trades contributed 25.5% to the volume, while New Government of Ghana Notes and Bonds accounted for 4.28%, and corporate bonds made up 3.52%.
Cedi gains against major currencies
The Cedi appreciated against major currencies during the review week:
It gained 0.25% against the US Dollar, closing with a midrate of GH₵15.7900.
It strengthened by 2.48% against the British Pound, ending at GH₵20.7031.
The Cedi also appreciated by 2.19% against the Euro, closing at GH₵17.3038.
Indicative open market rates showed the Cedi trading at GH₵15.7492 per Dollar, GH₵20.8543 per British Pound, and GH₵17.4477 per Euro.
GSE experiences slight retracement
During the review period, the Ghana Stock Exchange (GSE) saw a marginal decline in its benchmark index.
The GSE Composite Index dropped by 0.35%, influenced mainly by decreases in the share prices of MTN Ghana (MTNGH) and NewGold (GLD). MTNGH’s share price fell by 0.91%, closing at GH₵2.17 per share, while GLD dropped by 0.83%, ending the week at GH₵402.52 per share.
In contrast, Ecobank Transnational Inc. (ETI) was the only stock to record an increase, rising by 5.88% to GH₵0.18.
As a result, the GSE Composite Index closed the week at 4,364.83 points, reflecting a year-to-date appreciation of 39.44%.
Trading volumes plunge by 98.26%
Market activity witnessed a sharp drop, with trading volumes plummeting by 98.26%. Only 4,640,938 shares were traded, resulting in a total turnover of GH₵10.92 million.
Looking ahead, Tesah Capital predicts that financial stocks and the ICT sector will play key roles in shaping the index’s performance in the coming week.
