First repo auc­tion, where to in­vestin 1996

Financial Mirror (Cyprus) - - FRONT PAGE -

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.

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