Databank Research News Today

“Possible election-induced fiscal overruns may induce inflationary pressures and slow the disinflation process. The budgeted increase in capital expenditure from GH¢20.44 billion in 2023 to GH¢28.70 billion in 2024 will likely stimulate price pressures as the government could overrun the programmed amount during this election year”.

The government is also expected to raise more than 50.0% of the GH¢61.9 billion budget deficit through treasury bills.

“We believe improving liquidity levels in the money market and yield expectations will augur well for corporate issuance in 2024. We expect corporate insurance will present competitive opportunities to investors seeking to diversify investment portfolios from longer-dated GoG [Government of Ghana] securities”, Databank Research added.

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Analysts believe bond market activity could remain sluggish as investors seek to snap returns on the money market amid declining treasury bill yields.

Reacting to concerns about the deepening of the cedi’s woes in the first month of 2024 despite the $600 million inflow from the International Monetary Fund support, Mr. Koomson said the depreciation would not be that deep as compared to last year.

It therefore expects banking stocks to fare better in 2024 as the financial sector continues recuperating from the aftermath of the domestic debt exchange programme.

Speaking to Joy Business, Mr. Arkoh-Koomson urged the Bank of Ghana to collaborate with the Development Bank Ghana to invest more in value-addition advancement to improve the country’s export earnings.

This is coming after the country’s debt went up by about ¢6.3 billion between April and June 2023 to reach ¢575.5 billion.

The cedi gained about 9% in value to the American greenback last week to sell at ¢11.00, following the Executive Board of the International Monetary Fund’s approval of the Fund-support programme.