• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, March 29, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Investor Sentiment to boost following inflation rate declines

February 13, 2021
thevaultzbythevaultz
in Securities/Markets
0
Investor Sentiment to boost following inflation rate declines

The year-on-year decline in the rate of inflation from 10.4 percent to close the year 2020 to 9.9 percent in January 2021 is likely to boost investor sentiment on the financial market.

Inflation in simple terms is the rate at which prices of goods and services change making it an important measure of financial well-being. The decline in the rate of inflation also falls within the Bank of Ghana’s medium-term target of 8±2 percent.

According to Analysts, this decline in inflation rate at the start of the year is sign of positive market sentiment meaning the overall attitude of investors towards the financial market is likely to boost. Also, this strengthens confidence in the current monetary policy stance as being appropriate amidst the pandemic.

RelatedPosts

Samba Foods Plc Appoints New Board of Directors to Champion New Direction of the Company on GSE

GAX Calls for Women-Owned Businesses Enlistment

Ghana’s Major Export Commodities Traded Mixed- Dr Addison

This will also lead to a decline treasury yields as seen at the current weekly auction of government securities by the Central Bank. For instance, at the recent weekly auction held, the interest rate on Treasury bills maturing within 91 days declined to an average rate of 13.23 percent compared to 13.82 percent for the immediate past treasury sale. For Treasury bills maturing within 182 days, average interest rate declined to settle at 13.96 percent as against previous auctions 14.01 percent.

Similarly, for discount rates, the government auctioned GH¢1,103.15 million in three-month bills dominating the treasury bill sales at an average price of 12.81 percent with the lowest accepted price being 12 percent and the highest being 13.4 percent. This discount rate is lower than that of the immediate past auction where the average price lingered between 13 percent and 13.45 percent.

Likewise, for the six-month bills, GH¢121.8 million was auctioned at a discount rate extending from 12.95 percent to 13.15 percent per annum as against a range between 13 percent and 13.17 percent for last time’s auction. Also, the discount rate reflects that the bills sell for less than face value. 

The 364-Day bill also had GH¢102.25 million issued at a fairly higher interest rate compared to the other bills because of the time value of money. This bill had an average discount and interest rates of 14.43 percent and 16.86 percent respectively.

Investor Sentiment to boost following inflation rate declines

From the start of year 2021, Treasury bill sales have witnessed oversubscriptions with government continually exceeding its target. These figures further indicate investors’ interest in the short end of the market as purchase of government’s short term securities continue to soar with more preference for bills maturing within 91 days.

Also, on the stock exchange, market sentiment appears bullish as benchmark indexes keep improving with current year to date return of 11.57 percent for the entire market and 5.14 percent on financial sector stocks mainly those from the insurance and banking sectors.

Although headline inflation has declined slightly, Analysts hold that some of these figures are distorted by the unusual pandemic patterns of spending.  Also, the rate of decline in inflation is likely to be undermined by the spike in crude oil prices which is now hovering around US$60 per barrel on the world market. 

Finally, with pandemic pressures on the economy remaining following the second wave of COVID-19, there are fears that such declines in inflation may be fuelled by more job losses increasing unemployment rate in the near term. 

Tags: Bank of GhanaBanking sectorGhana Stock ExchangeGovernment of Ghana Securities AuctioninflationInsurance sectoroil pricesTreasury bills

Related Posts

Samba Foods Plc Appoints New Board of Directors to Champion New Direction of the Company on GSE
Securities/Markets

Samba Foods Plc Appoints New Board of Directors to Champion New Direction of the Company on GSE

March 29, 2023
Raise Capital from the GFIM to Bridge Infrastructure Finance Gap - GSE
Securities/Markets

GAX Calls for Women-Owned Businesses Enlistment

March 28, 2023
Ghana’s Major Export Commodities Traded Mixed- Dr Addison
Securities/Markets

Ghana’s Major Export Commodities Traded Mixed- Dr Addison

March 27, 2023
Continuous Depreciation of the Cedi Affecting Funding Rate and Profit Returns for Forex Traders- Expert
One Top Story

Declining Inflation, BoG’s Rate Cut Reasons for Cedi’s Recent Stability- Analyst

March 27, 2023
Ghana Stock Exchange Signs MoU with MIIF to Increase the Listing of Mining Companies on Local Bourse
Securities/Markets

Ghana Stock Exchange Signs MoU with MIIF to Increase the Listing of Mining Companies on Local Bourse

March 24, 2023
Bears Dominate GSE Mid-Week Trading Session, Leaves Market Capitalization Bleeding
Securities/Markets

Bears Dominate GSE Mid-Week Trading Session, Leaves Market Capitalization Bleeding

March 23, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Kenya’s current account deficit to inch up slightly in 2021- Fitch Solutions

Next Post

Government resolve to create conducive environment for business success

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
I’m Quitting Comedy In 5 Years – Comedian Basketmouth
Entertainment

I’m Quitting Comedy In 5 Years – Comedian Basketmouth

by Esther Korantemaa OffeiMarch 29, 2023
BoG Governor Appeals To Parliament For Quick Approval Of Revenue Bills To Fast-Track IMF Deal
General News

BoG Governor Appeals To Parliament For Quick Approval Of Revenue Bills To Fast-Track IMF Deal

by Gifty BansahMarch 29, 2023
Business Support Groups Poised to Drive African Integration
Africa

Business Support Groups Poised to Drive African Integration

by Stephen M.CMarch 29, 2023
What Exactly Changed? – Sam George Reacts To Video Of ‘The Evolution’ Of Joe Biden On Gay Marriage
General News

What Exactly Changed? – Sam George Reacts To Video Of ‘The Evolution’ Of Joe Biden On Gay Marriage

by Sam SamMarch 29, 2023
Russia Halts Sharing Of Missile Test Information With U.S
Europe

Russia Halts Sharing Of Missile Test Information With U.S

by Comfort AmpomaaMarch 29, 2023
FDA Boss Thrilled About Micro, Small-Scale Enterprises Registration And License Under PLS
Vaultz Business

FDA Boss Thrilled About Micro, Small-Scale Enterprises Registration And License Under PLS

by Gifty BansahMarch 29, 2023
I’m Quitting Comedy In 5 Years – Comedian Basketmouth
BoG Governor Appeals To Parliament For Quick Approval Of Revenue Bills To Fast-Track IMF Deal
Business Support Groups Poised to Drive African Integration
What Exactly Changed? – Sam George Reacts To Video Of ‘The Evolution’ Of Joe Biden On Gay Marriage
Russia Halts Sharing Of Missile Test Information With U.S
FDA Boss Thrilled About Micro, Small-Scale Enterprises Registration And License Under PLS
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In