Banks push Ghana market up

February 4, 2014 by

Monday, 4th February 2014 | When the Ghana stock market closed last Friday, the Financial sector index was up to 1,940.23 points compared with the 2013 year end close of 1,786.60 for an 8.6 percent gain in just the first month of the New Year, but at the end of Monday’s trading, it jumped 86.87 points to 2,027.10 or 4.3 percent and is now up 13.46 percent

The one-day leap was fuelled by Ecobank Ghana gaining 8 percent to close at GH(¢)7.01 and Standard Chartered Bank Ghana up 9.2 percent to close at GH(¢)18.

Grunge-ghana-flag280x150pxThe Ghana composite market index that gained 5.14 percent at the close on Friday at 2,255.52 up from 2,145.20 at the start of the year, jumped by 62.22 points or 2.7 percent on Monday to end at 2,317.74 for an 8.04 percent gain from the start of the year.

There was trading in only 177,620 shares at the end of trading on Monday.

The big movers for the year to date are Ecobank Ghana up 25 percent; Ecobank Transnational Incorporation gained 21 percent and Standard Chartered Bank Ghana 20 percent. The big losers are Mechanical Lloyd Company down 8 percent; Pz Cussons Ghana 14 percent and Trust Bank lost 14 percent.

Filed Under: Global Market, Stock Market Tagged With: , ,

Ghana financials up 8.6% in 2014

January 31, 2014 by

Friday, 31 January 2014 | When the Ghana Stock market closed on Friday, the financial sector index was up to 1940.23 points compared with the yearend close of 1786.60 for an 8.6 percent gain in just one month into the New Year. The Ghana composite market index gained 5.14 percent for the same period, closing at 2,255.52 up from 2,145.2. Year-to-date, 9 stocks gained and 7 declined.

The big movers so far are Ecobank Ghana up 14 percent, Ecobank Transnational Incorporation gained 21 percent and Standard Chartered Bank Ghana 10 percent. The big losers are Mechanical Lloyd Company down 8 percent, Pz Cussons Ghana 14 percent and Trust Bank lost 14 percent.

GSEChart_31Jan2014During the past week, 8 stocks rose and only one declined as the indices gained 1.6 percent for the overall market and the financials gained 2.6 percent up from the 1,891.66 on the 24th of January.

Advancing stocks | At the end of the week, Ecobank Ghana gained 6 percent, Mechanical Lloyd Company 6 percent, Cal Bank gained 2 percent, Standard Chartered Bank Ghana 5 percent, Enterprise Group gained 4 percent.

There was trading in 8,249,233 shares which is significantly up from the 1,960,344 units traded last week.

Filed Under: Global Market, Stock Market Tagged With: , ,

GSE continues up

January 24, 2014 by

Friday, 24th January 2014 | The Ghana stock market continues on its merry way upwards during the past week with the GSE Composite index climbing to close the week at 2218.23 up from 2,186.94 at the end of the prior week. The financial index closed at 1,891.66 up from 1,847.22 from Friday January 10th.

There were 6 stocks trading that recorded gains to 5 that fell in the past week compared with 6 gaining (updated) and 7 falling in price from the week ending January 10. The market traded only 1,960,344 shares down from 4,785,965 shares during the previous week. At the end of the week, there were 18 bids on stocks in the market, up from 16 the week before but offers increased to 20 from 17.

GSE_24Jan2014Advancing stocks | At the end of the week Cal Bank gained 2 percent; Ecobank Transnational Incorporation gained 6 percent; Enterprise Group gained 4 percent; Standard Chartered Bank Ghana gained 4 percent.

Declining stocks | Trust Bank lost 14 percent and PZ Cussons lost 10 percent.

Filed Under: Global Market, Stock Market Tagged With: , ,

GSE: Ghana continues bullish move

January 10, 2014 by

Friday, 10th January 2014 | The year may have changed but that is not yet visible in the movement of stock prices on the Ghana Stock exchange.

The GSE Composite Index closed the week at 2,184.82 up from 2,152.54 at the end of the prior week for a gain of 32.28 points and the financial index closed at 1,844.44, up by 43.02 points from 1,801.42, a 3.5 percent gain so far for 2014.

Advancing stocks overwhelmed declining ones during the week by a 2:1 ratio with 8 gaining and 4 falling in price, representing an improvement over last week’s performance of 6 advancing to 3 declining.

GSE10JanTrading for the week accounted for 2,597,827 units up from 1,488,967 units last week. At the end of the week, there were 19 bids, up from 17 the week before, and offers climbed to 26 from 19. The absence of bids for half of the market is an indication of weakness. While the number of bids have grown over the last four weeks, it shows that only a fraction of the market is performing and that is mainly the financials. Additionally, several of the companies listed have not traded for more than six months and the absence of bids suggests that had these stocks been more liquid, the main market index may not have grown as much as it did in 2013.

Advancing stocks | Ayrton Drugs Manufacturing gained 6 percent in trading for the week; Ecobank Transnational Incorporation gained 20 percent during the week and is up 26 percent for the year to date; Starwin Products was up 33 percent but is flat for the year to date.

Declining stocks | Produce Buying Company lost 6 percent; UT Bank lost 2 percent.

Filed Under: Global Market, Stock Market Tagged With: , ,

GSE: PZ Cussons up 339%

January 3, 2014 by

Friday, 3rd January 2013 | PZ Cussons recorded gains of 339 percent for 2013 on the Ghana Stock Exchange in a year when the stock market racked up gains of 78.66 percent.

PZ Cussons is a manufacturing and distribution company of soaps and electricals. PZ Cussons was followed by Enterprise Group, a business development and management consultancy company; Cal Bank came next with 155 percent and Mechanical Lloyd, agents for the sale and servicing of BMW cars and motor cycles, Ford vehicles, Massey Ferguson agricultural machinery and Delphi products, was close behind with 153 percent.

For the year ended December 2013, the indices closed at 2,145.20 for the GES composite and 1786.60 for the financials. For the year, 20 stocks recorded gains and 8 declined with no price change for 9 stocks. The gains range from a low of 14 percent to a high of 339 percent with 9 stocks gaining more than 100 percent and 6 between 50 and 87 percent.

GHana2013StocksPerformanceThe market started 2014 in a positive note with the two indices recording gains at the close on Friday, January 3. Total volume for week amounted to 1,488,967 units as GSE Composite Index closed the week at 2,152.54 for a gain of 9.75 points and the financial index closed at 1,801.42 for a gain of 17.67 points or 0.99 percent for the week. For the week, 6 stocks gained against 3 that recorded losses. CAL Bank gained 2 percent, Ecobank Transnational Incorporation gained 5 percent, UT Bank gained 2 percent and Total Petroleum loss 3 percent.

Banks dominant | The market performance was dominated by the banking sector with banks increasing loans at a fast pace thus boosting profit and stock prices at a very strong pace. The Ghanian economy continues to benefit from an excellent growth rate flowing from increased investment in the variety of commodities the country processes. Ghana’s economy grew by 7.9 percent in 2012 and is projected to grow 7 percent as reported by the International Monetary Fund in the latter part of 2013,

Towards the end of the year, the stock market was reflecting bearish symptoms with bids in for only a third of the stocks listed in December. This continues to be the case but with 17 stocks with bids at the end of the week and 19 with offers. There may be pull back in the prices of some of the stocks, especially so with several companies reporting losses or reduced profits. However, the banks seem poised to continue to generate hefty gains in 2014 with strong growth continuing in the economy, which should lead to continued demand for loans and propel the stock market to another robust performance for the year.

Related posts | Ghana stocks poised for correction

Filed Under: Global Market, Stock Market Tagged With: ,

Central depository merger in Ghana

December 24, 2013 by

The Central Securities Depository GH and GSE Securities Depository Company are to merge with effect from the beginning of 2014. The Central Securities Depository (GH) Ltd shall be the surviving entity with the effective date of the merger is January 1, 2014. Bank of Ghana will own 82% of the new company and transfer 18% to the Ghana Stock Exchange. The Ghana Stock Exchange will be allowed to increase its shareholding up to 30% within one (1) year at a price existing at the time of the merger.

The merged entity will handle securities listed and unlisted on the Ghana Stock Exchange as well as Government of Ghana and Bank of Ghana Instruments, Cooperate Bonds and Money Market Instruments. It will also operate the registrar services under the licence granted by the Securities and Exchange Commission.

“The merger will provide a common depository platform for the two institutions and harmonisation of trading as well as clearing and settlement practices. This will generate benefits and thus create significant additional value for all market participants,” a release from the Ghana Stock Exchange said.

“The merger will make for a more efficient trading of fixed income and equity securities and reduce operational cost for the merged depository and lower transaction costs for market participants. It will also make the market more attractive to investors. Investors will maintain only one account for all their portfolio. The resources of the shareholders, Bank of Ghana and Ghana Stock Exchange can be pooled together to build a state-of the-art infrastructure to modernise the operations of the depositor.” the release went on to state.

A new Board of Directors will be appointed by the two shareholders to manage the affairs of the company. Stephen Tetteh, maintains his position as Chief Executive Officer while Melvina Amoafo, the current Executive Director of the GSE Securities Depository Company assumes the position of Deputy Chief Executive. All staff of the GSE Securities Depository Company will be absorbed into the new company.

The Central Securities Depository GH Ltd was established in 2004 to manage the issue, redemption and maintain the records of ownership of securities issued by Government of Ghana, Bank of Ghana and the Ghana Cocobod. The Central Securities Depository is wholly owned by the Bank of Ghana.

In 2008, the Ghana Stock Exchange (GSE) established the GSE Securities Depository Company Limited (GSD) as a subsidiary to provide custody for securities listed on the Ghana Stock Exchange and also to provide for the dematerialization of share certificates.

“It has been realised that the capital market in Ghana is not big enough to be served by two depositories. The Ministry of Finance facilitated discussions since 2010 between the Bank of Ghana and the Ghana Stock Exchange towards a merger of the two subsidiaries,” the release said.

In April 2013, a Transaction Advisor was engaged to advise on the process. The Due Diligence Reports and Valuations Reports of the Transaction Advisor were accepted by the Boards of the Bank of Ghana and the Ghana Stock Exchange.

Related posts | Ghana Stock Exchange rated best performing in Africa

Filed Under: Global Market, Stock Market Tagged With: , ,

Ghana inflation elevated but falling

December 24, 2013 by

Ghana’s year-on-year inflation as measured by the CPI stood at 13.2 percent in November 2013, up from the 13.1 percent recorded in October 2013. The rate is well above the target set by the Central Bank of 9 percent for 2013. The monthly change rate for November 2013 was 0.8 percent, against the 2.3 percent recorded in October 2013.

The Food and non-alcoholic beverages group recorded an average year-on-year inflation rate of 7.3 percent, 0.4 percentage points higher than the 6.9 percent recorded in October 2013. Three subgroups of the food and non-alcoholic beverages group recorded inflation rates above the group’s average of 7.3 percent.

GhanaCoatofArms150x150The non-food group recorded an average year-on-year inflation rate of 17.6 percent in November 2013, compared to a rate of 17.7 percent recorded in October 2013. Four subgroups recorded year-on-year inflation rates above the group’s average rate. Housing, water, electricity, gas and other fuels recorded the highest rate of 34.1 percent followed by Transport (26.4%), followed by Miscellaneous goods and services (17.8%) and Clothing and footwear (17.7%). Inflation was lowest in the Communications subgroup (4.3%).

Interest Rates | The inflation rate for 2012 was 8.8 percent and in 2011 8.6 percent. As a result of the hike in the inflation rate earlier in the year, the Central Bank of Ghana hiked policy interest rates to 16 percent in May and is unchanged since then.

The latest Treasury bill rates as of December 20 is 18.6721% for 91 – Days, 18.8305% for 182 – Days and 17.0000% for 1 and 2 – Year Notes.

Related posts | Ghana GDP up strongly to June

Filed Under: Economy Tagged With: ,

GSE: Market up for week

December 20, 2013 by

Friday, 20th December, 2013 | Market sentiments improved this past week with 14 out of the 37 listed stocks closed the week with bids, unlike the week before when only 8 closed with bids.

Seventeen stocks ended the week with offers versus 22 the week before. Seven stocks ended with gains for the week and six declined but the number of bids is an indication of weakness in the market with several companies reporting disappointing results coming off a decline in the value of minerals on the world market.

The main market index closed at 2,146.91m up from last week’s 2130.87 for a 78.95 percent gain year to date. The financial index at 1,780.30 is down from 1,780.47 the week before for a 71.21 percent gain for the year to date.

The big price movers came from Tullow Oil Plc that gained GH¢2.98 to close at GH¢34.98 for 9 percent increase for the week; Guinness Ghana Breweries gained GH¢0.30 to end at GH¢6.40 for a 5 percent gain; ALUWORKS gained just GH¢0.01 to close at GH¢0.05 for a 17 percent increase; Ayrton Drugs Manufacturing Company gained 6 percent to close at Gina Harrison¢0.17; Ccocoa Producer regained the GH¢0.01 it lost last week for a 100 percent gained.

Related posts | Ghana stocks poised for correction

Filed Under: Global Market, Stock Market Tagged With: ,

GSE: Stocks poised for correction

December 13, 2013 by

Friday, 13th December 2013 | The Ghana Stock Exchange fell slightly for the week to Thursday but gained on Friday by 5.07 points to end marginally above last week’s close. The main market index closing at 2130.87 up from last week’s 2,129.69 for a 77.19 percent gain year to date and the financial at 1,780.47 up from 1,774.36 the week before for a 70.57 percent gain for the year to date.

At the end of trading, the price of 3 stocks were down and 3 were up for the week. The marginal change to the index is reflective of the narrowness of the number of stocks with price movements in either direction.

ghanastockexchange280x150For the week, Aluworks gained 25 percent as the price moved up by GH¢0.01 to GH¢0.06, Cocoa Processing Company dropped 50 percent to hit GH¢0.01, Starwin Products dropped 25 percent to reach GH¢0.03 and Ghana Commercial Bank gained 2 percent to end at GH¢4.90 but had a bid at the close above the last selling price at GH¢4.91, last week it gained one percent.

The market seems to have weakened with just 8 stocks having bids at the end of trading, while there are 22 stocks with offers. The vast majority of the offer prices are the same as the last selling prices of the stocks, an indication of selling pressure.

Filed Under: Global Market, Stock Market Tagged With: ,

GSE: Stocks up for week

November 25, 2013 by

The Ghana Stock Market is up 77.71 percent so far this year to the week ending November 22, a marginal increase over the 77.36 percent gained registered up to the week before with the market index moving up to 2,132.01 points at the end of the week from the prior week’s 2,127.79 points. The financial index that closed at 1,778.22 points at the end of November 15, is now up to 1,782.43 for a 71.41 percent gain for the year to date.

During the week, 8 stocks rose versus 4 that recorded declines a much improved position compared to the prior week when there were 6 declining stocks to 2 that advanced.

ghana-flag150x150Cocoa Processing Company gained 50 percent to end the week at Gina Harrison¢0.02; Ecobank Transnational gained 6 percent to close at Gina Harrison¢0.18; HFC Bank Ltd, the bank that Trinidad’s Republic Bank has 40 percent ownership in, which gained 6.4 percent during the week ending November 15 gained a further 8 percent to close at Gina Harrison¢0.90. The week before it gained 13 percent and is now up 100 percent for the year to date. Mechanical Lloyd Company that sells and services BMW cars and motor cycles, Ford vehicles, Massey Ferguson agricultural machinery and Delphi products gained 5 percent to be up 153 percent year to date. Ayrton Drugs Manufacturing Company recorded a 6 percent gain.

Aluworksm an aluminium continuous casting and cold rolling company, lost 20 percent of its value during the week to close at GH¢0.05 and Benso Oil Palm Plantation lost 19 percent to close at GH¢3.20.

Filed Under: Global Market, Stock Market Tagged With: , ,