Two stocks cause Index to slide

The GSE-Composite Index suffered a loss today as the index was down 6.49 points from 1,885.76 points to 1,879.27 points.The change brings the year-to-date return to 11.26%. The GSE-Financial Stock Index was also down 9.29 points, closing trading on Monday at 1,777.52 points. The corresponding year-to-date return on financial stocks is 15.02%.

A total of 0.11 million shares, valued at GHS0.26 million traded on the exchange today. Today’s volume and value dropped by 79.48% and 18.92% respectively, compared to that of the previous sessions. UTB dominated trading with 51.58% of the total trade volume, whiles FML, had 75.84% of the total trade value.

GGBL climbed 2 pesewas to close at GHS1.52. BOPP was also up by a pesewa to close at GHS3.22. On the downside, GOIL and SCB slipped to GHS1.31 and GHS15.45 from GHS1.32 and GHS15.83 respectively.

Courtesy: CAL BROKERS LTD

ALW dominated trading as CAL & EGH dropped

image

The local bourse slipped for the second session in a row, declining by 3.04 points from 1,886.03 points to close at 1,882.99 points. The GSE-Financial Stock Index also recorded a loss, down 4.1 points to 1,786.28 points.
ALW dominated trading on Tuesday in terms of volume, accounting for 61.61% of the 1.62 million shares traded, whiles EGH had 53.15% of the GHS1.67 million realized from trading. The volume and value traded went up by 18-folds and 26-folds respectively compared to that of the previous sessions.
No gainers were recorded today. On the down side, CAL and EGH dropped by GHS0.03 and GHS0.01 respectively to close trading at GHS0.68 and GHS7.31.

Courtesy: CBL.
 

Focusing on the Banking sector of the Ghana Stock Exchange (Part I)

The financial sector on the Ghana Stock Exchange includes banking and non-banking stocks. There are seven (7) banks on the exchange, six of which operate in the country and one in Gambia, (Trust Bank ltd, TBL). The banks operating in Ghana include CAL Bank (CAL), Ecobank Ghana (EBG), Ghana Commercial Bank (GCB), HFC Bank (HFC), Standard Chartered Bank (SCB), and UT Bank (UTB).

Let us now look at the various facts & figures behind these banks and how they performed since January 2012 on the Stock market.
I would be concentrating on GCB & HFC in this post.


Ghana Commercial Bank (GCB);
GCB – Bloomberg Chart: Price movement from Dec 2011 to May 2012. 

With market capitalization of about GHS 506.15 million, GCB began the
year with share price of GHS 1.86 and currently priced at GHS1.92. This bank records a year high of GHS 1.95 and a year low of GHS 1.85. This stock still showed some volatility as it always does. The earnings per share, trailing twelve months (ttm) is 0.2117 with a Price / Earnings ratio (ttm) of 9.0220. The last dividend that was paid was reported as GHS 0.0644 (04/08/2011). The Price / Sales (ttm) and Price/Book in the most recent quarter are GHS 1.1589 and GHS 2.0212 respectively. [All amounts in Ghana cedis (GHS)]

HFC Bank (HFC)
HFC, which has stated capital of GHS 45million and planning to hold a right issue in order to meet the central bank’s capital requirement of GHS 60million did not trade very frequently from the beginning of the year. It opened the year with 0.45 pesewas(p) per share and currently priced at the same although it had some movements. Its year low is recorded as 0.43p and year high as 0.45p.
 HFC like most financial/Insurance stocks performed badly and this may be due to the election year effect on the market. Key statistics from Bloomberg and the market reveal Price / Book value from the most recent quarter to be 1.0739 while the earnings per share (EPS) was 0.0583. One essential ratio, P/E ratio (ttm) is recorded as  7.7188.
HFC- Bloomberg Chart: Price movement from Dec. 2011 to May 2012.

For HFC, the last dividend reported (16/04/2012) is GHS 0.0202 with dividend yield annualized at GHS 5.1163 and a five (5) year Net growth of 32.53%.

In a statement e-mailed by the Ghana Stock Exchange the bank said net income advanced 26 percent to 10.9 million cedis ($6.3 million) in the year, 2011.
NB: This is the first part on the Banking sector of the Ghana Stock Exchange; join me in my next post on Ecobank Ghana (EBG) and Standard Chartered Bank (SCB).

Fri.18.05.12: Ghana Stock Exchange (GSE) Market Update.


Friday, GSE Market Update;

CAL Brokers: 
Courtesy: CAL Brokers

In the market today, the major indices, the GSE-Composite Index and the GSE-Financial Stock Index, gained some ground following price appreciation in two equities.

The GSE-Composite Index closed at 1,046.94 points from 1,041.30 points and the financial stock benchmark closed 6.99 points higher at 910.75 points. The year-to-date return on the market rose to 8.04%. 

A total of 2.00million shares, the third-highest volume this year,  were exchanged for GHS 0.92million. 
The trade volume was more than 10 times in excess of that of the previous session, and the value, 5 times more. 
Ghana Oil (GOIL) dominated trading for the second successive session, with 95.12% of the trade volume and 88.79% of the market turnover.

GOIL closed at a record high of GHS0.43, after gaining 2 pesewas. Ecobank Transnational Inc. (ETI) also gained marginally, closing at GHS 0.14 from GHS 0.13. Ecobank Ghana (EBG) and Total Petroleum (TOTAL) recorded losses. EBG, the banking giant lost GHS0.03 to close at a year-low of GHS 3.00. 

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Courtesy: Ghana Stock Exchange
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Taking a closer look at Unilever Ghana Limited (UNIL)

Today, I want us to focus on Unilever Ghana Limited (UNIL) and it’s performance in 2011 and in the year so far. In my earlier post about the 1st Quarter of the Manufacturing sector, I wrote on the current standing of the company on the exchange. 
UNIL: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

We would look at more figures and how investors are reacting. UNIL as we know, manufactures and markets consumer goods throughout Ghana some of which includes toilet soaps, personal products, detergents, and consumable food products.

This year, UNIL began trading at GHS 6.64 (03.01.12) per share on the exchange. UNIL has issued about 62.50 million ordinary shares on the Ghana Stock Exchange (GSE) with market capitalization of GHS 509.38 million. As released by the exchange, UNIL records a dividend yield (%) of 5.89. It was also recorded a price per book value from the most recent quarter as reported by Bloomberg as 8.6373. 
Investors reaction to the stock on the exchange has not changed so much. The shares are trading from time to time and most of the time as odd lots. As at today, the price remains at it’s year high of GHS 8.15.

UNIL reported in March 2012 that it has made a revenue of GHS 239,005 for the 2011 financial year. In a press release to the Ghana Stock Exchange, it reports a profit after tax for the year as GHS 30,115, an increased of the one for 2010 which was GHS 17,947. Shareholders equity increase from GHS 41,340 to GHS 48,893.(NB: all figures are expressed in thousands of GH cedis unless otherwise stated)

UNIL would be having its Annual General Meeting on 27th April 2012 at the National Theatre. Shareholders are advised to go and contribute to the discussions and also vote on issues. Moreover, the company has proposed a dividend per share of 0.4800 pesewas which has a qualifying date as 25th April, 2012.
We hope to keep our eyes on UNIL and it’s affairs in the household & consumer products sector.

Benso Oil Palm Plantation (BOPP) in the 1st Quarter of 2012 on Ghana Stock Exchange

6 months performance on GSE – BOPP [Oct – Mar]
Benso Oil Palm Plantation with GSE stock ticker symbol; [BOPP] is an oil palm producing and processing company and was listed on the GSE on August 30, 2004 when it was converted into the public limited liability. The nature of businesses the company is authorized to carry on include: Growing of oil palm and other agricultural products, Processing of oil palm fruits to produce palm oil and palm kernels and Dealing & trading in palm oil, palm kernels and other agricultural products.
BOPP on the Ghana Stock Exchange has recently been the choice for investors as the company continues to show greatness in different forms.
The Key Statistics for BOPP as researched by Bloomberg reveals that, the current P/E ratio [trailing twelve months (ttm)] is 6.0546 and Earning per share (EPS) (ttm) is 0.2808.  BOPP’s current market capitalization is GHS 59.16 million with about 34.80 million shares outstanding. Price per Book (most recent quarter) is valued at 1.9908.
BOPP started the year, 2012 on the Ghana Stock Exchange with a share price of GHS 1.10 (03.01.12) and has since been rising to attain a year high of GHS 1.78 (20.02.12); the highest since 18th October, 2011. An investment made in BOPP exactly a year ago would make an outstanding 121.23% profit to date.
Year to Date change on GSE – BOPP [Jan -Mar. ]
Analysts predict further rise in price of this stock in the year but the greatest fear for most investors is the Election Year fever on the market which has shown its power over stocks in the past years.
We hope to closely follow this stock and see how investors react to it despite the election year’s controlling force in the market. 

Is CAL Bank undervalued on the Ghana Stock Exchange?

The debate continues everywhere among investors as they keep wondering whether CAL Bank shares on the Ghana Stock Exchange are undervalued. My earlier post on the 2011 year review of CAL bank on GSE has shown clear analysis of CAL as at last year. It showed the potential of CAL’s share price rising this year as the bank plans to recapitalize to meet the required capital as proposed by the Bank of Ghana. Meanwhile, some investors and market analysts argue that, the share price is undervalued to the extent of stating that there could be a rally on the exchange for these stocks very soon.
Let us look at some figures of the Bank; (courtesy: Bloomberg)

Valuation and Earnings as at 20.02.12.

The Banking stock shows a relative P/E to the GSE Composite Index of 0.2628 and a P/E ratio (ttm) of 3.6220 as reported by market analysts.

With a current market capitalization of about GHC 64.48 million, the Bank would recapitalize this year to meet the requirement.

Dividends figures & Other Market figures

Chart: Share Price Movement from December 2011 to Date on GSE.