Ghana’s benchmark stock index headed for its longest losing streak on record as rising bond yields in the West African nation drew investors to fixed income and away from equities.
The Ghana Stock Exchange Composite Index dropped for an 11th day, losing 0.2 percent to 2,170.32 by the close in the capital Accra. That’s the longest losing streak since the gauge was introduced in January 2011, according to data compiled by Bloomberg. The index, which tracks the performance of 35 companies, has lost 4 percent this year as accelerating inflation and a depreciating cedi damped demand for the nation’s stocks.
“Investors are interested in the fixed-income market currently,” said Afua Mensa-Bonsu, a research analyst in Accra at Databank Group Ltd., Ghana’s biggest private fund manager. “Yields on fixed income in the secondary market are going up so it looks attractive to foreign investors.”
Yields on Ghana’s three-year notes, the longest duration open to foreign investors, climbed 60 basis points in the past 11 trading days to 24.6 percent, according to data from the local unit of Standard Chartered Bank Plc on Bloomberg. That compares with 23 percent when it was issued in February 2014.