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
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.
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.