Ghana Yield Falls Most in 7 Months on Mahama Oath: Accra MoverMoses Mozart Dzawu
The yield on Ghana’s $750 million of Eurobonds fell the most in more than seven months as John Dramani Mahama was sworn in to office, easing concern about an opposition challenge to his presidency, according to Maplecroft.
The debt, which was issued in September 2007 at a yield of 8.5 percent, fell 33 basis points, the biggest decline since May 22, to 4.392 percent by 3:33 p.m. in the capital, Accra, according to data compiled by Bloomberg. Mahama took the presidential oath earlier today, with former Bank of Ghana Governor Kwesi Amissah-Arthur sworn in as his deputy.
Investors “have interpreted the inauguration ceremony as an indication that Mahama’s position in office is now more secure, despite the pending Supreme Court hearing into the election results,” Ben Payton, Africa analyst at the Bath, U.K.-based risk-analysis company, said in an e-mailed response to questions. “The markets appear confident that, in the absence of overwhelming evidence that fraud affected the outcome, the Supreme Court is unlikely to uphold the opposition’s complaint.”
Mahama of the incumbent National Democratic Congress party defeated opposition candidate Nana Akufo-Addo of the New Patriotic Party by 3 percentage points during the Dec. 7-8 election. The NPP said 1.3 million votes are in question, almost four times Mahama’s margin of victory, citing discrepancies in figures tallied at polling stations and those announced by the Electoral Commission, as well as differing numbers of registered voters. The agency has denied the claims.
Prices for most emerging-market Eurobonds appreciated today, “driven by increased global risk appetite and favorable liquidity conditions,” Samir Gadio, London-based emerging markets strategist at Standard Bank Plc said in an e-mailed response to questions.
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