Stocks

Bond market: Turnover falls by 68% to GH¢2.12bn

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The secondary market activity weakened with turnover falling by 68.28% week0n-week to GH¢2.12 billion.

Trading remained concentrated in the belly of the curve, with 2031-2034 maturities accounting for 74.22% of turnover at a weighted average yield of 14.39%.

The 2027-2030 segment contributed 18.72% at an average yield of 13.47%.

Similarly, the post-2035 maturities accounted for just 7.06% of turnover at an average yield of 14.72%.

In the primary market, the issuance of a new four-year bond maturing in September 2030 attracted GH¢4.46 billion in bids, with GH¢3.15 billion accepted at a clearing yield of 12.00%.

Databank Research believes the new four-year Government of Ghana bond was strategically timed to capitalise on improved liquidity from the GH¢2.3 billion COCOBOD DDEP payment and GH¢5.82 billion in unallocated bids from the 31 August treasury bill auction.

Consequently, investor attention shifted, contributing to the decline in secondary-market turnover.

"Looking ahead, we expect market to recover modestly following the settlement of the bond”, said Databank Research

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.