Investor caution dampens activity in secondary bond market amid anticipation of coupon payments

Investor sentiment in the secondary bond market remained cautious last week, as market participants observed from the sidelines to assess the impending cash coupon payments associated with the newly issued bonds.

The result was a notable decline in the aggregate market turnover, plummeting by 80.81% to reach GHS 17.34 million.

This dip in trading activity was particularly pronounced across the 2027-2030 maturities of the new bonds, which contributed to the overall contraction in market turnover.

At the same time, bond prices experienced steady upward adjustments, mirroring the positive response of the market to the coupon payments introduced by the government.

As the month draws to a close, analysts anticipate that portfolio adjustments by influential players such as pension funds and asset managers will inject a fresh impetus into the bond market.

This expected uptick in activity holds the potential to reshape the market landscape and foster renewed investor engagement in the upcoming week.

Source: Norvanreports