Graphic Business News

Yields on govt securities ease

By: Graphic Business

YIELDS on government securities eased last week following a decline in demand for the short-dated papers. 
The 91-day treasury bill rate eased by five basis point to settle at 13.32 per cent, whereas the yield on the 182-day treasury bill rate declined by seven basis points to 13.82 per cent.

The yields on the other treasury securities, however, remained unchanged.
Out of the GH¢795.25 million bids tendered at the auction, a total of GH¢794.75 bids was accepted by the government to beat the week’s target of GH¢790 million.

Most of the accepted bids were the 91 Day T-Bill; it accounted for 59.46 per cent of the total accepted bids.

At the next auction, the government is expected to raise GH¢764 million from the sale of the short-dated treasury instruments.

Stock market
The Ghana Stock Exchange (GSE) stepped up gains to witness another round of weekly gains as investors demand for financial and energy sector stocks soared in the trading week.

The benchmark composite index rose by 4.02 per cent to an index level of 2,870.81 points, reflecting a year-to-date return of 11.28 per cent.

The GSE Financial Stock Index also went up by 3.84 per cent to settle at 2,606.79 points, representing a year-to-date return of 12.82 per cent. 

Twenty-seven equities recorded a total traded volume of 1.74 million shares valued at GH¢8.4 million in the week under review. This represents over 100 per cent increment over last two week’s total traded volume.

Enterprise Group Ltd, Total Petroleum Ltd and Starwin Products Ltd emerged the most actively traded stocks. They accounted for 50.91 of the total traded volume.

Market capitalisation also increased by 1.17 per cent to settle at GH¢61.2 billion.

Price movements
Fifteen equities, made up of 12 advancers and three laggards saw price change.

Shareholders of Total Petroleum Ltd gained 84 pesewas as their share prices closed higher at GH¢5.05 per share.

Ecobank Ghana Ltd and GCB Bank Ltd advanced by 61 pesewas and 58 pesewas to settle at GH¢9.01 and GH¢7.10 per share respectively. Standard Chartered Bank Ltd and Ghana Oil Company Ltd rose by 33 pesewas and 26 pesewas to close at GH¢26.66 and GH¢3.23 per share, respectively.
Unilever Ghana upturned by 23 pesewas to trade at GH¢13.13 per share. Societe Generale Ghana Ltd, Enterprise Group Ltd and Benso Oil Palm Plantation gained 18 pesewas each to close the week’s trading at GH¢6.44, GH¢1.11 and GH¢4.21 per share, respectively.

Agricultural Development Bank Ltd and CAL Bank Ltd also inched up by three pesewas apiece to settle at GH¢5.95 and GH¢1.20 per share, respectively. 

On the flip side, HFC Bank Ltd shed nine pesewas to close at GH¢1.30 per share.

The share prices of Mechanical Lloyd Company Ltd and Starwin Products Ltd declined by a pesewa each to settle at five pesewas and two pesewas, respectively.

Currency market
The cedi witnessed its third-straight depreciation against the three major trading currencies.

The pound closed bullish to record its longest winning streak against major currencies on the international currency market. The pound’s fifth weekly consecutive gain was on the back of hawkish minutes emerging from the recent Brexit negotiation.

The cedi thus depreciated by 1.58 per cent to trade at GH¢6.14 per pound, representing a year-to-date depreciation of 2.84 per cent.

The dollar slipped to its lowest in three years on investors’ worries over the impact of a shutdown in US Government due to counter arguments hindering the passage of the government’s budget deal for 2018.

The cedi closed trading at GH¢4.42 per dollar, representing a year-to-date depreciation of 0.14 per cent. 

The euro, which began on a sluggish note after taking breath from recent upward rallies, managed to close the week in the gains on the international forex market.

The cedi thus recorded a week-on-week loss of 0.96 per cent to trade at GH¢5.42 per euro, reflecting a year-to-date depreciation of 2.27 per cent.

Crude oil traded lower despite efforts by OPEC and its allies in ensuring a substantial tight in global supply, as they commit to ensuring a production cut extension.

The decline was largely attributed to investors’ worries over the potential effect of the sudden rebound in oil production in the US.

As a result, brent crude oil dropped by US$1.18 to close at US$68.69 per barrel.  

Gold retreated from a four-month high, following the sharp rise in US treasury securities to elevate the opportunity cost of holding non-yielding assets.

Gold lowered by US$1.4 to trade at US$1,333.50 per ounce. 

Cocoa closed higher this week as the dry harmattan season tempered with production output and reduced the availability of quality beans into the commodities market.

The supply cut associated with this development helped the soft crop to add US$20 to trade at US$1,938.50 per ton. 

Coffee sank on the back of the unprecedented surge in production of the soft crop in top grower – Brazil, which is indicated to be one of its largest in recent years.

This news contradicts earlier predictions of a fall in the production of the soft crop in 2018. Coffee thus shed a cent to trade at $1.21 per metric tonne. –IGS Financial Services/GB