Ghana: Stocks Appreciate as Cedi Recovers

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Ghana Oil Company Limited (GOIL) shares on the Ghana Stock Exchange (GSE) rose by 7.4 per cent to close at GHc1.30 whilst GCB Bank edged by 1.0 per cent to close at GHc5.18 per share.

GSE trading for the last week of March (27 to 31) opened on the bourse with price movements in six equities, as both gainers and losers evened out; consequently the benchmark GSE-Composite Index edged by 0.6 per cent to close at 1,902.1 points.

The GSE-Financial Stock Index also inched up by 0.5 per cent to close at 1,810 points, according to Nordea Capital Investment Stock Market analysis provided on Tuesday.

According to the Nordea Capital Investment Stock Market Expert, CAL Bank advanced by 9.6 per cent to close at GHc0.80 per share, but the UT Bank on the other hand declined by 20.0 per cent to close at GHc0.04 per share.

The SIC Insurance also lost 15.4 per cent to close at GHc0.11 per share whilst Societe Generale dipped by 1.3 per cent to close at GHc0.77 per share.

In all, 560,100 shares exchanged hands and these were valued at GHc320,285.46.
Nordea Income Growth Fund is priced at GHc0.3015 with a year-to-date return of 9.68 per cent.

On the interbank market, the Ghana cedi gained against two of its major trading currencies; it lost by 0.2 per cent against the US Dollar at a mid-rate of GHc4.3429; edged by 0.6 per cent against the Euro at a mid-rate of GHc4.7263; and rose by 0.6 per cent against the GB Pound at a mid-rate of GHc5.4620.

Meanwhile a review of the fourth week (March 20 to 24) transaction indicated that market sentiments remained bullish for the week, as the benchmark GSE-Composite Index took a cue from investors and rose by 0.6 per cent to close at 1,890.5 points; this represents a year-to-date return of 11.9 per cent.

According to Nordea Capital Investment Stock Market Expert review, the session recorded gains across Banking, Petroleum and Agribusiness sectors of the market.

Ecobank Transnational Incorporated led the gainers for the week, the stock advanced by 8.3 per cent to end at GHc0.13 per share.

The GCB Bank appreciated by 2.6 per cent to close at GHc5.13 per share and Societe Generale added 1.3 per cent to its market value, the stock closed the week at GHc0.78 per share.

The Societe Generale reported Profit After Tax (PAT) of GHc63.9 million for the Year 2016, representing a 43 per cent increase over the GHc44.6 million recorded in 2015.

Total Ghana gained (+0.9 per cent) to close at GHc2.20 per share; GOIL recorded (+0.8 per cent) to GHc1.21 per share whilst Benso Oil Palm Plantation climbed (+0.7) to close at GHc2.87 per share.

The Ecobank Ghana recorded (+0.6) to close transaction at GHc7.29 per share, and Standard Chartered hit (+0.4) to close at GHc15.44 per share.

On Treasury Securities, Nordea Capital Investment Stock Market Expert said the yields on short term treasury securities trended upwards during last Friday’s auction.

It said demand for short term securities remained high for yet another week with an estimated GHc800 million in bids.

The 91 day bill received tenders of up to GHc721.15 million, between a range of 16.0 per cent and 21.4 per cent, and Bids on the 182 day bill rose to GHc180.08 million with government accepting 176.08 million at a weighted average interest rate of 17.19 per cent.

Nordea Capital is an investment bank, licensed by the Securities and Exchange Commission and offers a comprehensive range of services in asset management, research and strategy, corporate finance and private equity to institutional, corporate and private clients.

Nordea Capital is dedicated to growing and preserving client assets and building trust, in partnership with financial professionals and institutions worldwide.

The GSE is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990.

It currently lists 42 equities from 37 companies and two corporate bonds. All types of securities can be listed.

Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.

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