Fixed Income Market closes 2023 with cumulative trade of GHS 98bn; 57% less the GHS 230bn traded in 2022
The Ghana Fixed Income Market (GFIM) concluded 2023 amidst a backdrop of notable contractions, painting a more subdued picture compared to its prior-year performance. The market, which serves as a vital barometer of Ghana’s debt landscape, witnessed shifts in trade volumes and composition.
In a telling metric, the cumulative volume traded within the GFIM dwindled to GHS 98.44 billion, marking a significant 57.26% contraction from the GHS 230.32 billion recorded during 2022. This pronounced decline underscores evolving investor sentiments, likely influenced by a confluence of macroeconomic factors and policy dynamics such as the Domestic Debt Exchange Programme.
Diving deeper into the composition, long-term Government securities retained a dominant yet reduced presence, accounting for 32.47% of the market activity. Meanwhile, short-term government instruments emerged as a focal point, constituting a majority share of 58.64%. Corporate trades, while representing a smaller slice, still maintained relevance, contributing 8.89% to the overall market activity throughout the year.
Beyond volume, the GFIM also experienced a contraction in the frequency of trades. The total number of trades for the year receded by 24.36%, dwindling from 528,188 trades in 2022 to 399,522 trades in 2023. This decline suggests a potential recalibration among market participants, reflecting a strategic repositioning in response to evolving fiscal and monetary landscapes.
In sum, 2023 presented a transformative phase for the GFIM, characterized by volume contractions and shifting trade dynamics. As stakeholders navigate the complexities of 2024, insights from 2023 serve as a vital compass, guiding strategies and illuminating opportunities in Ghana’s evolving fixed income landscape.
