Secondary market sees GHS 3.78bn in trading volume

Investors engaged in a total trading volume of GH¢3.78 billion on the secondary market in the previous week according to insights from GCB Capital Research. T-bills maintained a dominant position, representing 62.9% of the total traded volume, while bonds constituted the remainder.

Notably, the trading volume of bonds is on an upward trajectory, indicating improvement from the subdued levels observed immediately post-DDEP.

Per insights from GCB Capital Research, a significant portion of bond market activity was attributed to sell/buy-back transactions involving banks and various investor categories.

Despite this heightened activity, the secondary market level persistently exhibit a broad depression, with the most actively traded tenors hovering at approximately a 30% discount to their face value. This underscores prevailing market conditions characterized by discounted valuations, potentially influenced by broader economic factors or specific market dynamics.

As market participants navigate these conditions, the interplay between T-bills and bonds, coupled with the prevalence of sell/buy-back transactions, underscores the nuanced nature of the secondary market, suggesting a complex interplay of factors influencing investor behavior and market valuations.