First repo auction, where to investin 1996

The central bank aimed for a full liberalisation of the markets with its first repurchase auction of Treasury Bills and the start of 13-week and 90-day T-bill sales every month, while brokers and analysts made recommendations for investments in Cyprus stocks as the bourse saw a staggering 58% return the previous year, according to the Cyprus Financial Mirror issue 143, on January 4, 1996.

The first repurchase programme of CYP 35 mln in T-Bills went without a hitch, with

Repo auction:

Where to invest:

stock market with banks selling the paper to the Central Bank of Cyprus at 8.88% which they are obliged to repurchase in 13 days. Reports that banks had to make bids worth 1% of total assets were refuted. Also, primary T-bill auctions will take place twice a month for 13-week and 90-day paper. As of January 1, banks are obliged to invest 20% of their average 1995 weekly deposit base in T-bills at a rate of 6%. Last year was the best for the a staggering 58.1% return, achieved on a wave of mergers and acquisitions, with volumes reaching CYP 135 mln and the market cap breaking the CYP 1 bln barrier. Brokers and fund managers recommended investing anything between 10% and 66% in the banking sector, followed by Trading and the Finance & Investment sectors. Most popular stocks to be grabbed included Bank of Cyprus (full and partly paid), Laiki warrants, Cytrustees, Universal Life, Interamerican, Vassiliko Cement and CTC.

Insurance merger:

Dealmaker Nicos Shacolas aimed for a greater consolidation in the insurance sector following the Paneuropean-Philiki merger, with a CYP 10.3 mln bid for a 60.3% stake in Interamerican offered to Demetris Kontominas. Shacolas said that after takeovers, the Group premiums neared CYP 40 mln with reserves in excess of CYP 100 mln.