CAL Bank Ltd., a lender in Ghana, dropped the most in three weeks as rising government Treasury yields in the West African nation drove investors away from the stock.
The shares declined 4.2 percent to 23 pesewas by 3 p.m. in Accra, the capital, the biggest fall since May 9 and the lowest level in two weeks.
“The shares suffered from the ongoing sell-off on the market with investors leaving the market to invest in Treasury bills,” Emmanuel Tsigbey, a stock trader at NewWorld Securities Ltd. in Accra, said by phone today. “It is due to the fast pace at which the Treasury bill yields are rising and these investors are looking for quick cash.”
Ghana’s 91-day T-bill rate, the benchmark for lenders, rose to 19.36 percent at the last auction on May 24, the highest since Jan. 15, 2010, as the central bank sought to absorb extra cedis on the local market and bolster the local currency which has dropped 13 percent this year, according to data compiled by Bloomberg.