Even though the coronavirus pandemic has discouraged investment in all sectors, as investors are not sure of their returns, Ghana’s money market and stock market offers an opportunity for Green Views residents and investors to consider.
Some of the instruments in the money market include treasury bills and bonds. For treasury bills, currently, a 91-day bill yields an interest of 13.97 percent per annum. The 182-day bill also offers 14.05 percent per annum; and the 364-day bill yields and interest of 16.87 percent per annum.
Furthermore, the 2-year note, 3-year bond, and the 5-year bond are currently offering 18.75 percent, 18.85 percent, and 19.25 percent respectively. All these are risk-free investments which guarantee returns at the end of the investment period.
Investors can also choose to invest in the secondary market which spans from 6-year to 20-year bonds which also currently offer interest between 19.22 percent and 21.50 percent per annum.
According to market watcher SEM Capital Advisors, the Ghana Fixed Income Market yields are expected to rise over the short term due to government’s borrowing appetite which presents buying opportunities for investors interested in both short and longer dated securities, especially at the upper end of the yield curve, as investors can purchase longer term securities to maximise returns.
Eurobond prices in the frontier and emerging markets, it adds, have significantly dropped and consequently yields have increased. This, it adds, may present an opportunity for investors to increase their returns on their Eurobonds investments.
The Ghana stock market
Another opportunity for investors is that which exists in the Ghana stock market. Even though the country’s stock exchange has also been badly hit by the coronavirus pandemic and plunge it into abysmal form, the falling share prices present a good opportunity for investors who are looking to the future and want to increase their shareholding on the capital market.