Bond market activity jumps 319% as debt programme picks up
The bond market in Ghana saw a significant improvement in activity last week, with a 319.2% increase to GH¢2.11 billion as the Domestic Debt Exchange program gathers momentum.
This follows a 50.30% increase in market turnover in the preceding week, as more bond transfers were recorded.
According to trading results, the uptrend in market activity was primarily driven by volumes on the 2023, 2026, and 2039 bonds, which accounted for 50.18% of aggregate turnover.
However, the situation was not without its challenges as rating agency S&P downgraded Ghana’s January 26, 2023 bond to selective default (D) after the government failed to honour the coupon due on the bond.
The failure to pay the coupon was a result of the suspension of external debt service, including Eurobonds.
Analysts predict that the bond market will experience quiet sessions this week as investors await the new terms of the Domestic Debt Exchange program.
