Govt auctions 3-year dollar denominated bond this week
The auction of a three-year dollar denominated domestic bond of the government issued on Monday, November 6, 2017 in Accra, is expected to be opened to both resident and non-residential Ghanaian investors price guidance to be announced today.
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Biding for the bond is, however, anticipated to end on the November 9, 2017 at 2 p.m. followed with settlement on November 13, 2017.
Proceeds of this auction will significantly contribute to the stabilisation of the local currency during the upcoming festive season.
As part of the government’s effort at raising adequate funds to either finance developmental projects or settle debts, it intends to issue a three-year dollar denominated bond in the week commencing from November 6, 2017.
The yield on the 91-Day T-Bill saw 17 basis points moderation from previous week’s yield value to settle at 13.16 per cent this Friday.
The yield on the 182-Day also declined by five basis points to settle at 13.78 basis points. The rate of return on the other treasury securities were, however, unchanged.
At the week’s auction, a total of GH¢1,005.3 million bids were tendered by investors out of which the government accepted GH¢936.50 million bids.
This was below the anticipated target of GH¢1,296.00 million. The 91-Day and the 182-Day jointly constituted 90.93 percent of the overall accepted bids.
At the close of the week’s auction, the yield curve sustained its normality. The upward slopping of the yield curve indicates that short-term interest rates are most likely to raise in the future.
There is, therefore, the need for investors to consider shifting their assets into long-term investments.
The recent dividend declaration and reconstitution of boards of directors in some listed companies boosted market activities in the week under review.
The announcement of an Interim Dividend Payment of GH¢0.0631 per share by Total Petroleum Limited, reconstitution of board of directors of PBC and managerial changes in some listed companies reshaped investors’ sentiment.
At the close of the trading week, the Benchmark Composite Index inched up by 0.64 basis points to settle at 2,367.28 points, representing a year-to-date return of 40.15 per cent.
The Financial Stock Index, however, declined by 0.16 per cent to settle at 2,032.92 points due to price declines in some heavily capitalised financial stocks.
The year-to-date return of the index thus stood at 31.55 per cent.
Market performance
At the closing bell, total traded volume stood at 5.37 million shares valued at GH¢8.97 million. This represents about 500 per cent increment over previous week’s total traded volume.
CAL Bank and Total Petroleum Limited emerged as the most actively traded stocks as they accounted for 91.78 per cent of the total traded volume.
CAL Bank, however, made the most gain, accounting for 47.03 per cent of the total traded value. Market capitalisation, however, eased by 0.75 per cent to settle at GH¢58,057.10.
A total of 13 equities saw price changes. On the list of advancers, Unilever Ghana Limited recorded the most gains, advancing by 39 pesewas to trade at GH¢10.99 per share.
Total Petroleum Limited upturned by 30 pesewas to trade at GH¢3.50 per share. Guinness Ghana Brewery Limited and Ghana Oil Company Limited up ticked by 15 pesewas and six pesewas to trade at GH¢1.90 and GH¢2.55 per share, respectively.
Standard Chartered Bank Limited and GCB Bank Limited also added three pesewas and a pesewa to trade at GH¢19.61 and GH¢4.21 per share, respectively.
On the downside of the market, Tullow Oil Plc went down by 39 pesewas to trade at GH¢17.30 per share. Fan Milk Limited and Ecobank Ghana Limited tumbled by 10 pesewas and four pesewas to trade at GH¢19.30 and GH¢7.54 per share, respectively.
Enterprise Group Limited and Starwin Products Limited declined by a pesewa each to close at GH¢3.95 and two pesewas per share, respectively.
Intravenous Infusion Limited trimmed a pesewa to settle at eight pesewas per share.
