GSE records 16.31% return in first half of the year

GSE performance

After failing to post positive results in the last two years, the Ghana Stock Exchange continue on its track of recovering from previous losses. This is reflected in its performance in the first half of the 2017 year. At the end of trading session yesterday (30th June 2017), the GSE Composite Index inched up by 12.77 points to close at 1,964.55, representing a year-to-date gain of 16.31%. Likewise, the GSE Financial Stocks Index edged up by 11.5 points to close at 1,824.88, representing a year-to-date gain of 18.08%. Yesterday’s gains were made possible by six gainers and no losers. At the end of the trading session, Standard Chartered Bank Limited (SCB) led the gainers with 11 pesewas to close at GH¢17.04 per share. This was followed by Benso Oil Palm Plantation Limited (BOPP) and Ghana Oil Company Limited (GOIL), which gained 8 pesewas and 5 pesewas each to close at GH¢4.40 and GH¢1.87 per share respectively. Fan Milk Limited (FML) also gained 4 pesewas to close at GH¢11.82 per share while Enterprise Group Limited (EGL) and Ecobank Transnational Incorporated (ETI) both gained a pesewa each to close at GH¢2.39 and GH¢0.13 per share respectively.

In relation to the year-to-date performance of individual stocks, UTB bank lead with 133.33%, followed by BOPP (111.54%) and GOIL (70%) respectively. These are then followed by GCB (46.07%), SCB (39.98%), ETI (30%) and SOGEGH (20.97%). Others include CAL bank (16%), ALW (14.29%), SCB PREF (13.33%), TOTAL (12.12%), FML (6.1%), EGH (6.06%) and UNIL (5.76%).

Despite the overall positive results of the exchange, a few listed stocks posted negative returns in the half year. Notable of these stocks are Mechanical Lloyd Company Limited (-33.33%), HFC Bank (-26.67%) and Tullow Oil Plc (-22.10%). Other stocks with losses so far include Starwin Products Limited (-33.3%), Produce Buying Company Limited (33.3%), Ayrton Drugs Manufacturing Co. Ltd. (16.67%), PZ Cussons Ghana Limited (-9.09%), Guinness Ghana Breweries Limited (8.59%) SIC Insurance Company Limited (-8.33%), AngloGold Ashanti Depository shares (-7.69%) and Access Bank Ghana (-7.32%).

In the same period, a few stocks such as Agricultural Development Bank, Golden Web Limited, Cocoa Processing Company Ltd. and Clydestone (Ghana) Ltd. neither recorded a gain nor a loss.

Profits of SAS fortune fund drop in 2015

SAS fortune fund

The bearish economic outlook for 2015 had significant impact on performances of various sectors of the economy for the year.

Figures released by the managers of the fund showed that the fund decreased by GH¢ 0.0036 to close the year at GH¢ 0.5064.

The fund also made a total return of negative 0.71 percent as compared to the GSE Composite Index of negative 11.77 percent.

Despite these performances, managers of the fund maintain that the Strategic African Securities Fortune Fund has been able to maintain a lead role over its benchmark Ghana Stock Exchange Composite Index.

Speaking at the fund’s 11th Annual General Meeting Chairman of the SAS fortune fund Board, Maxwell Logan stated,

“The total net asset value of the SAS fortune fund at the end of 2015 stood at GH¢ 2,971,909 and representing about 5% decrease over the previous year’s total net asset of GH¢3, 129, 788.”

According to Maxwell Logan, the fund was also Continue reading “Profits of SAS fortune fund drop in 2015”

Ghanaians advised to buy stocks now

stocks

Investment bankers are urging Ghanaians to take advantage of the lower share prices on the Ghana Stock Exchange (GSE) to buy stocks of listed companies for future gains. With only a handful of listed companies doing well on the bourse this year, stock prices have been plummeting since the beginning of the year with many investors shying away from the equities market.

The GSE Composite Index (GSE-CI) stood at 1,787.50 points as at June 30, down from 2,352.23 points at the same time in 2015 with total market capitalisation dropping from Ȼ64.62 billion to Ȼ54.79 billion over the 12-month period. As at close of trading on Friday, the Composite Index from January has declined by 10.41percent while the GSE- Financial Index, which tracks the performance of only financial stocks, has also dropped by 13.28 percent with the market capitalisation dropping slightly again to Ȼ54.72 billion.

Chief Executive Officer of Databank, Kojo Addae-Mensah, strongly urged Ghanaians to seize this moment to buy stocks and reap the benefits later. “I will strongly advise that this is the time to go and purchase stocks and you will be smiling in five years’ time,” he told. Conceding that equity market has been poor this year and “worse than expected”, he is hoping that it doesn’t get any worse and the year will end at a small negative and after the elections investors will come back. Bemoaning the “short-term thinking of Ghanaians”, Mr. Addae-Mensah hopes that Ghanaians will see the basic investment principle of buying stocks at low prices and selling them at high prices.

Seth Aryitey, Executive Director of CDH Asset Management Limited also reiterated the call on investors and the Ghanaian populace to seize the opportunity to buy stocks. “We know the economy is down but this is the time to see opportunities and take advantage. If you look at the stock market, the share prices are rock bottom but there are hidden intrinsic values in there. So this is the time to start picking up stocks,” he said.

Mr. Aryitey noted that most people do not know enough about the stock market and so do not research properly to understand the fundamentals before buying shares. “Most people do not understand the stock market. The higher the risk, the greater the gain and if you understand that properly you will realise that when prices are down, that is the time to buy,” he added. Speaking on how to get people to invest and buy more shares, Mr. Aryitey said there is the need for stock market education and to give adequate information where necessary.

Managing Director of Ecobank Investments, Kesseih Antonio, told the B&FT in an interview that stocks have not been great for the past two years and that is because of the challenges the economy has seen including a power crisis that almost crippled the manufacturing sector.

 

Source: http://www.myjoyonline.com/