Ghana’s Treasury market recorded a significant undersubscription in the latest auction, reflecting waning investor appetite despite rising yields across all maturities.
According to data from the Ghana Fixed Income Market (GFIM), the government targeted GH₵5.33 billion but secured only GH₵4.62 billion, resulting in a 13.31% shortfall.
This marked a further dip in market demand, down from GH₵4.76 billion in the previous week.
All bids tendered were accepted, even as interest rates inched upward.
The 91-day Treasury bill saw a notable increase of 15 basis points to close at 10.82%, while the 182-day bill rose marginally by 3 basis points to 12.50%.
The 364-day bill also gained 7 basis points, settling at 12.95%.
Analysts say the rising yields are aimed at attracting more investor participation, though uncertainty in liquidity conditions appears to be restraining demand.
In the secondary bond market, activities slowed sharply. Trading volumes on the GFIM fell by 48.2% week-on-week to GH₵2.3 billion.
Market participation remained concentrated, with Bank of Ghana bills dominating activity and accounting for 60.04% of all trades.
Newly issued Government of Ghana bonds contributed 21.92%, while corporate bonds added 14.54%.
Sell-buyback transactions represented 3.25% of the market, treasury bills made up just 0.24% and old Government of Ghana notes and bonds accounted for a mere 0.01%.
The Ghana cedi also witnessed mixed performance across major trading currencies.
It depreciated against the US dollar by 0.46%, ending the week at GH₵10.90 per dollar, although it still holds a strong year-to-date appreciation of 34.86%.
The local currency gained 0.87% against the British pound to close at GH₵14.30, with a year-to-date appreciation of 28.67%.
It also appreciated against the euro by 0.37% to settle at GH₵12.57, maintaining a 21.07% year-to-date gain.
In the open market, indicative mid-rates hovered at GH₵10.82 for the dollar, GH₵14.29 for the pound and GH₵12.54 for the Euro.
On the equities market, the Ghana Stock Exchange (GSE) posted another week of positive performance.
The GSE Composite Index inched up by 0.22% to close at 8,385.35 points, extending its impressive year-to-date return to 71.53%.
The gains were driven by a strong showing from financial and energy stocks including Clydestone (CLYD), Ecobank Ghana (EGH), GOIL, Société Générale (SOGEGH), Standard Chartered Bank (SCB) and GCB Bank. CLYD surged by 27.27% to GH₵0.28, continuing its remarkable year-to-date rise of 833.33%.
SOGEGH advanced by 21.79%to GH₵3.41, while EGH climbed 10.29% to GH₵15.44.
GCB gained 8.50% to GH₵16.97, and GOIL rose 3.98% to GH₵2.61.
Some counters, however, dragged the index. Unilever (UNIL), Ecobank Transnational (ETI), MTN Ghana (MTNGH), Gold ETF (GLD) and CAL Bank all recorded declines, with CAL suffering the steepest drop of 38.75% to close at GH₵0.49.
Market activity was robust, with trading volumes more than doubling.
Total shares traded rose by 104.29% from 5.15 million to 10.53 million, while the value of transactions reached approximately GH₵40.6 million.
Market watchers expect financial stocks and the ICT sector to continue shaping the index’s performance in the coming week, supported by improving investor sentiment and continued demand for high-performing equities.
