Secondary Market Turnover Falls 24.5% as Investors Focus on Mid-Term Bonds
Activity in Ghana's secondary bond market slowed during the latest trading week, with total turnover dropping by 24.52% week-on-week to GHS5.41 billion.
Despite the decline in trading volumes, investor interest remained strong in medium-term government bonds, particularly those maturing between 2031 and 2034. This segment accounted for 67.69% of all trades during the week, with an average yield of 13.95%.
Bonds maturing between 2027 and 2030 recorded the second-highest level of activity, making up 31.68% of total turnover. These securities traded at a weighted-average yield of 11.68%.
Meanwhile, longer-dated bonds maturing beyond 2035 continued to attract limited investor interest. They represented just 0.63% of total market turnover and offered an average yield of 14.56%.
According to Databank Research, the decline in trading activity does not signal weakening investor confidence. Instead, it reflects a normalisation in market activity following previous periods of stronger trading.
The research firm noted that investors continue to prefer bonds at the front and middle sections of the yield curve, where returns remain attractive while offering relatively lower risk compared to longer-term securities.
Looking ahead, Databank Research expects trading activity in the secondary market to receive a boost from end-of-month portfolio rebalancing by investors, which typically increases market transactions.
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Secondary Market Turnover Falls 24.5% as Investors Focus on Mid-Term Bonds
Activity in Ghana's secondary bond market slowed during the latest trading week, with total turnover dropping by 24.52% week-on-week to GHS5.41 billion.
Despite the decline in trading volumes, investor interest remained strong in medium-term government bonds, particularly those maturing between 2031 and 2034. This segment accounted for 67.69% of all trades during the week, with an average yield of 13.95%.
Bonds maturing between 2027 and 2030 recorded the second-highest level of activity, making up 31.68% of total turnover. These securities traded at a weighted-average yield of 11.68%.
Meanwhile, longer-dated bonds maturing beyond 2035 continued to attract limited investor interest. They represented just 0.63% of total market turnover and offered an average yield of 14.56%.
According to Databank Research, the decline in trading activity does not signal weakening investor confidence. Instead, it reflects a normalisation in market activity following previous periods of stronger trading.
The research firm noted that investors continue to prefer bonds at the front and middle sections of the yield curve, where returns remain attractive while offering relatively lower risk compared to longer-term securities.
Looking ahead, Databank Research expects trading activity in the secondary market to receive a boost from end-of-month portfolio rebalancing by investors, which typically increases market transactions.