Foreign investors’ debt holdings decreased to GH₵13.4 billion at the end of December 2024, compared to GH₵17.5 billion at the end of December 2023.
Conversely, the value of foreign investors’ equity holdings increased to GH₵33.6 billion at the end of December 2024, from GH₵20.9 billion at the end of December 2023.
This reflected the improved performance of the stock market.
According to the 2024 Financial Stability Review, foreign investors’ presence in the debt market is expected to improve in 2025, on account of sustained macroeconomic recovery and favourable economic prospects.
In 2024, the activity of foreign investors in the capital market was quite mixed.
Whilst the value of equity security holdings by foreign investors increased, the value of their debt security holdings decreased during the period under review.
Stock Market Concentrated on Few Stocks
The stock market activities appeared concentrated on a few stocks, making it vulnerable to swings in these equities.
According to the report, the access dimension captures market concentration and is measured by the Herfindahl-Hirschman Index (HHI), the share of the largest ten firms in terms of market capitalisation and the share of the top 10 firms in terms of total trading volumes.
At the end of December 2024, the index for the access dimension remained unchanged at 0.39.
Stability Dimension Index Improves
Meanwhile, the stability dimension of the stock market improved in 2024.
At the end of December 2024, the index for the stability dimension increased to 0.39 from 0.23 at the end of December 2023.
The improvement in the stability index was on account of a reduction in the percentage of shares with negative returns, which declined to 12.9% at end-December 2024 from 33.3% at end-December 2023.
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