Bond market: – Adomonline.com

Bond market: Total turnover surged by 136.59% to GH¢2.1bn

Dorcas Abedu-Kennedy — Tue, 20 Aug 2024 13:48:32 +0000

Trading activities in the secondary market experienced a notable rebound last week.

Total volume traded reaching GH¢2.1 billion and a transaction count of 127, marking the highest activity since December 2023.

This was driven primarily by increased exchanges across all tenors.

The maturities for February 2027 and February 2037 represented 41% and 32% of the total volume traded, respectively.

Overall, trading remained concentrated on the shorter end of the LCY curve, which contributed to 58.6% of the total trade volume, while the belly and tail ends accounted for 39.93% and 1.47%, respectively.

Analysts expect trading activities to ramp up as investors look forward to a GH¢6.1 billion coupon payment this week.

Source: Joy Business

Bond market: Total turnover decreased by 16.25% week-on-week to GH¢1.33bn

Dorcas Abedu-Kennedy — Tue, 13 Feb 2024 07:31:57 +0000

The secondary bond market for Government of Ghana papers slowed in activity as the total volume traded declined by 16.25% week-on-week to GH¢1.33 billion.

Notably, exchanges from the February 2028 (coupon: 8.50%) and February 2029 (coupon: 8.65%) papers jointly constituted about 76% of the aggregate market turnover.

The LCY yield curve reversed downward, as the average Yield-To-Maturity on the 2027-2030 papers decreased to 19.13% (-198bps).

The 2035- 2038 also retreated to 17.07% (-14 basis points).

Analysts expect the sluggish trend in bond market activity to continue as investors reinforce firm demand for treasury bills to increase investment returns. This is amid declining T-bill yields.

Meanwhile, the government plans to raise GH¢4.87 billion on the 91-day to 364-day bills to refinance GH¢4.15bn maturing bills.

Analysts believe a relatively high auction target (+6.06% week-on-week), could trigger some upside pressures to yields.

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Bond market: Turnover increased sharply by 48.47% week-on-week to GH¢1.24bn

Dorcas Abedu-Kennedy — Tue, 23 Jan 2024 07:34:37 +0000

Trading activity improved on the secondary bond market last week as week-on-week turnover increased sharply by 48.47% to GH¢1.24 billion.

Trading activity concentrated more at the belly of the LCY yield curve, as the February 2033 (Coupon: 9.25%) and February 2034 (Coupon: 9.40%) papers jointly contributed more than half of the aggregate market turnover.

Bond yields increased across the board, as the average Yield-To-Maturity on the 2027-2030 papers increased to 17.36%, while the 2035-2038 advanced to 12.8%.

Analysts expect investor sentiments to continue improving in the bond market as the International Monetary Fund board approval for the first review of Ghana’s programme signals the country’s commitment to restoring macroeconomic stability.

Again, the approval of $300 million in budgetary support by the World Bank is also expected to boost investor confidence.