GFIM records 8.2% growth as volume traded hits GHS 5.4bn in June
The fixed income market of the Ghana Fixed Income Market (GFIM) closed the month of June 2023 with a notable increase in traded volume, reaching GHS 5.41 billion.
This represents an 8.20% growth compared to the previous month. However, when compared to the same period in 2022, the figures reveal a significant decline of 78%. Short-term Government securities dominated the market activity, accounting for an impressive 77.80% share.
From January to June 2023, the cumulative traded volume amounted to GHS 40.89 billion, indicating a substantial 67% decrease in comparison to the GHS 124.07 billion traded during the corresponding period in the previous year. This data highlights a significant slowdown in trading activity within the GFIM.
Meanwhile, the GSE Composite Index achieved its second-highest monthly return to date, showing a remarkable increase of 296.74 points. This positive performance in the first half of the year has resulted in a year-to-date return of 14.90%.
The GSE Financial Stock Index also demonstrated improvement, gaining 14.56 points and reducing year-to-date losses to 17.57%. Furthermore, the market capitalization of the GFIM reached a notable all-time high of GHS 70.24 billion.
This achievement can be attributed to the enhanced investor confidence observed in the market, along with several listed companies announcing dividend payment dates.
Despite the positive market performance, trading activity witnessed a significant decline in both volume and value. Volume traded decreased by 87.06%, while value traded experienced an 86.55% decline compared to the previous month.
Notably, the top five price gainers for the month were GGBL (28.48%), MTNGH (21.10%), CAL (20.00%), GLD (18.16%), and SCB (3.28%), showcasing notable price fluctuations within the market.
The GFIM fixed income market exhibits mixed trends, with growth observed in the traded volume compared to the previous month. However, the decline in year-on-year figures highlights challenges faced by the market. The positive performance of the GSE Composite Index and market capitalization reflects improved investor confidence, yet the significant decrease in trading activity warrants attention to revitalize market participation.
