According to the November 2023 Market Report from the Ghana Stock Exchange, the Ghana Fixed Income Market (GFIM) experienced a notable upswing, with trading volumes reaching an impressive GHS 12.78 billion.
This signifies a robust 32.16% increase compared to the previous month, offering a dynamic snapshot of heightened market engagement, potentially indicating increased investor interest or strategic shifts within the fixed-income landscape.
Nevertheless, a more nuanced narrative emerges when analyzing year-on-year trade volumes.
Despite the substantial monthly surge, there was a discernible downturn of 43.36% in trade volume when compared to the same period in the previous year.
One notable trend within the GFIM is the continued dominance of long-term government securities, constituting a significant 50.33% of overall market activity. This marks a substantial rise from the preceding month’s figure of 41.43%.
Zooming out to a broader perspective, the cumulative volume traded during the January-to-November 2023 period amounted to GHS 81.67 billion. Despite the robust monthly performance, this figure reflects a noteworthy 62.69% decrease from the GHS 218.91 billion traded during the same period in the previous year.
The substantial year-to-date decline can be attributed to present economic conditions but mainly due to shifts in investor sentiments over Government’s debt operation (DDEP) which has made bonds unattractive.
Overall, the Ghana Fixed Income Market’s November performance, marked by surging monthly volumes and nuanced year-on-year shifts, underscores the intricacies of the financial landscape. The dominance of long-term government securities and the overarching decline in cumulative trading volumes provide rich insights into investor behavior and prevailing economic conditions.