Government to borrow GH¢17.9 billion from domestic market

Per it’s issuance calendar, the government is set to borrow GH¢17.9 billion from the domestic market in the second quarter of 2020.

Out of this, a total amount of GH¢13.6 billion has been earmarked to settle maturing obligations whereas the balance of GH¢4.27 billion is designated to meet Government’s financing requirements.

The 91-day Treasury-bill constitutes 45.66 percent (GH¢8.2 billion) of government’s intended borrowing; followed by the 364-day T- bill with 15.31 percent (GH¢2.7 billion) whereas the 3-year bond accounts for 10 percent (GH¢1.8 billion).

The government hopes to raise an amount of GH¢800 million through the sale of a 7-year and 10-year bonds respectively and GH¢700 million from the issuance of the 2-year bond.

Treasury securities

For the week ending April 3, the government of Ghana’s treasury securities recorded rate moderation.

At the closing bell, the yield on the 91-Day T-Bill dipped by 20 basis points to settle at 14.44 percent.

Similarly, the yield on the 182-Day eased by 20 basis points to close at 14.95 percent. The yield on the 364-Day T-Bill, however, remained unchanged at 17.65 percent.

The yields on the treasury notes and bonds were, however, unaltered as they were not scheduled for the week’s auction.

A total amount of GH¢488.18 million was accepted by government out of the GH¢521.22 million tendered bids.

The amount raised exceeded the intended target of GH¢452.00 million with the 91-Day T-Bill dominating Government’s purchase by 74.94 percent.

At the upcoming auction, the Government hopes to raise an amount of GH¢1.10 billion through the issuance of the 91-Day, 182-Day and 364-Day T Bills.

Ghana Stock Exchange

The Ghana Stock Exchange also extended its bearish run as investors fled risky assets on market uncertainties emanating from the fast-spreading coronavirus amid a two-week partial lockdown imposed in certain parts of the country.

At the close of the week’s trading activities, the GSE-Composite Index dipped by 81 basis points to settle at 2,143.09 points, representing a year-to-date loss of 5.05 percent.

The GSE-Financial Stocks Index also posted a week-on-week decline of 1.62 percent as it settled at 1,894.50 points corresponding to a year-to-date loss of 6.20 percent.

Market activities however improved in the week under review as compared to the previous week’s market activities.

A total turnover of 564,659 shares worth GH¢1.52 million exchanged hands representing 156.14 per cent increase over last week’s outturns.

GCB Bank Ltd dominated market activities as it accounted for 42.08 percent of the overall traded volume.

Market capitalization however dipped by 0.32 percent to settle at 55,814.24 points.

Stock price movements

The week’s trading ended with nine equities recording price changes; three advancers and six laggards.

Enterprise Group Ltd Ltd topped the advancers with a price gain of 10 pesewas to trade at GH¢1.70 per share.

Ghana Oil Company Ltd and CAL Bank Ltd also added two pesewas and a pesewa to trade at GH¢1.64 and 83 pesewas per share respectively.

On the flip side of the bourse, Ecobank Ghana Ltd declined by 40 pesewas to trade at GH¢6.50 pesewas.

GCB Bank Ltd and Fan Milk Ltd also eased by 19 pesewas and seven pesewas to settle at GH¢4.50 and GH¢4.00 share respectively. Trust Bank Ltd and Standard Chartered Bank Ghana Ltd dipped by six pesewas and five pesewas to end the day at 34 pesewas per share and GH¢18.94 per share respectively.

Total Ghana Ltd completed the laggards list with five pesewas loss to trade at GH¢2.85 per share.