Getting into Financial Blogging – The eStock Analysis Story

My desire to know what’s happening every time on the various financial markets in order to invest or advice people to invest properly led me to Blogging and micro-blogging (Twitter ). My type of financial blogging requires an ability to understand what the figures mean with respect to businesses and their financial reports. I have, for some time, now focused on the listed companies on the Ghana Stock Exchange because those companies have given a chance to the public, hence the public deserve to know more about them.

I created my blog in 2009 but made the first post in July, 2011 (Titled:First Time investors on the Ghana Stock Exchange). This post did not only spark various discussions among I and my investment partners (i.e. members of Fortune Hunters Investment Club, now FHI Group); but, also showed me how people would be interested in reading my posts online.
I used to go online just to look at how many people have visited my blog. I was happy until I looked at other people’s blog and saw that I was really behind and suddenly I became sad. It became obvious that people online prefer fun, fashion, pictures, videos and lifestyle issues than my boring financial figures. But something wonderful happened; I found a place (the then, Ghana Blogging site) to list my Blog and join fellow bloggers. Over there, I got inspiration from new and experienced bloggers.
In 2012, as I was closely following Barcamp events online, I came across the name “Blogcamp”. I became so happy and followed through to get registered for the Blogcamp2012. This was where everything about my amateur financial blogging life got shaped up by the GURUS. My Social Media lifestyle heightened. I met my twitter friends at this event held at Kofi Annan Centre in ICT. I met @ttaaggooee (Nandimonbile fame), @raindolf (#TeamOasis fame), @abocco (Great blogger, Barcamp & #233moments fame), @nii_ayertey  (This dude, I religiously followed on twitter because of his strong opinions on issues of the nation. I met him at the event, got home, before realising he was the one I met, Smh). And finally the grandpapa, @ameyaw112 (who taught me how to monetize my blog at the Blogcamp2012. He introduced me to some money-making avenues other than the famous Adsense, Kudos man).  These are just few out of a lot of sharp brains I met at that event.
So, that’s how my blog evolved to getting nominated for the Best Business and Commerce Blog in 2012 – Following the market, writing and posting religiously. This nomination incredibly brought a lot of Traffic to my finance blog. Not many people are interested in knowing about the figures or the markets hence I used to get low traffic compared to the photo blogs, fashion and lifestyle blogs but now things has changed. I made my highest hit in February, 2013 because I was nominated.  Any post I make nowadays gets more than 400 views in a few hours. My top posts get 1000s of views in days. Even my old posts get so many views nowadays. The value I accumulate on Google Adsense also slightly shot up. The estimated value of my site increased tremendously from almost nothing to something.
But aside all these, nothing is more fulfilling than the calls I get every day; the contacts I make and finally the number of followers I get on the various social media platforms due to blogging. So many people contact me due to the posts I publish, with questions that spark discussions. Others seek advice on what to invest in and make requests for me to write on certain topics.  To you my followers I say thank you and keep following my lead. Don’t forget to invest, just ask me HOW?
Also published @ :

Week in Focus: How stocks performed on the Ghana Stock Exchange (GSE)

New week, new gains, new losses, the GSE did not show any clear direction. On Monday the Ghana Stock Exchange gained some ground as gains in CAL Bank and Mechanical Lloyd Company (MLC) offset losses in two other equities. The GSE-Composite Index closed at 1,036.48 points, from 1,035.97 points and the GSE-Financial Stock Index closed at 872.44 points, up 0.64 points from 871.80 points. A total of 0.35 million shares traded, a 51.39% decline from the 0.72 million shares traded at the previous session. The corresponding trade value was GHS0.10 million, 43.76% less than the previous session.
MLC dominated trading for the second successive session. Click for details.

On Tuesday, the banking sector affected the market indices as marginal losses in two banking stocks drove the both indices downwards. CAL Bank and Ecobank Ghana (EBG) recorded negative price changes. The GSE-Composite Index decreased by 1.17 points to close at 1,035.31 points, bringing the year-to-date return to 6.84%. The financial stocks index closed at 870.25 points, a 0.25% decline from the previous closing of 872.44 points. Compared to the previous session, Tuesday’s trade volume and corresponding trade value were 56.32% and 14.96% respectively less. Ghana Commercial bank (GCB) led the market in terms of value with 29.51%, while SIC Insurance led in terms of volume, accounting for 25.64% of the shares traded. Furthermore Guinness Ghana brewery limited (GGBL) was the sole gainer and it moved up by a pesewa to a year-high of GHS2.40.

Positive price changes in three equities on Wednesday, edged up performance on the local bourse. The GSE-Composite Index climbed 1.47 points to close mid-week trading at 1,036.78 points whiles the financial stocks index returned 0.09% to close 0.78 points higher at 871.03 points.
Now let’s look at the stocks that moved the market. Trading was dominated by UT Bank (UTB) in terms of volume, with 37.47% of the trade volume, and Ghana Oil (GOIL) in terms of value, with 36.55% of the turnover. GOIL closed at record-high of GHS0.55, up GHS0.01 from GHS0.54 whiles TOTAL Petroleum and UTB also gained.

The stock market on Thursday, declined as fall of GOIL’s stock price forced the GSE-Composite Index down, 0.39 points to close at 1,036.39 points. The financial index was not affect and it stayed flat. The trade volume and value declined for the fifth successive session as 0.09 million shares were traded for GHS0.04 million, 20.26% less than Wednesday’s turnover of GHS0.05 million. Trading was dominated by UTB, accounting for 52.38% and 35.75% of the trade volume and trade value respectively.

Trading on the bourse yesterday ended the week in silence. Activities on the exchange kept the indices stable. The GSE-Composite Index and the GSE-Financial Stock Index remained stable at 1,036.39 points and 871.03 points respectively meanwhile, Friday’s turnover exceeded the previous session’s by a marginal 0.29%. New faces for the week, like Ecobank Transnational Inc. (ETI) trades accounted for 47.58% of the shares traded, while Standard Chartered Bank (SCB) led the market in terms of value, with more than 50% of the turnover. Due to low activity in the market at the end of the week, no price changes were recorded for the day.

Looking ahead: Next week could begin as an active week for ETI, GOIL and SG-SSB since more Bids orders awaits Offers in the market. On the other hand, more Offers await Bids for CAL Bank and Mechanical Lloyd Company and this can best be confirmed affect the Pre-market trades on Monday. I hope next week restore high activity in the market.
Keep Investing and following this blog for the best.

Tues. 22.05.12: Ghana Stock Exchange: Market Update

Courtesy: CAL Brokers.

In today’s trading, the GSE-Composite Index rose 1.36 points to close at 1,039.28 points. This change brings the year-to-date return to 7.25%. The Financial Stock Index also gained 0.66 points closing at 898.65 points from 897.99 points in the previous session.
The total trade volume declined by 89.36% as 0.29 million shares were traded in 17 equities. The value traded on the exchange was GHS 0.75 million, which is 34.61% less than the previous session.
Standard Chartered Bank (SCB) trades accounted for 66.95% of the turnover, while HFC bank was dominant in terms of volume with 24.53% of the volume traded.
Ghana Oil (GOIL) and Unilever (UNIL) closed at record highs of GHS 0.45 and GHS 8.32 respectively, after gaining 2 pesewas each. Ghana Commercial Bank (GCB) and Guinness Ghana Brewery Limited (GGBL) also recorded gains. Losses were however recorded in Total Petroleum (TOTAL), Benso Oil Palm Plantation (BOPP) and Standard Chartered Bank.
Source of data: Ghana Stock Exchange & CAL Brokers.

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).

Ghana Stock Exchange (GSE): Market update for Friday, 11.05.12

Friday GSE Market Update:


Let’s look at what happened in the market today. The market closed on a bad note recording losses in four equities. The GSE-Composite Index closed the week at 1,050.34 points from 1,053.65 points. 

GOIL dominated trading for the third time in five successive sessions, the sixth in ten sessions, with 67.79% of the 0.4million shares traded and 58.86% of the GHS0.20million realized.
The corresponding year-to-date change for the exchange is 8.39%. The GSE financial stock benchmark fell 0.99 points to close trading for the week at 908.34 points.
Trade volume and value increased by 51.75% and 93.65% respectively, when compared with the previous session as reported by CAL Brokers.

Aluworks Ltd (ALW), Guinness Ghana Brewery Ltd (GGBL) and Ghana Oil Company Ltd (GOIL) gained a pesewa each to close at GHS0.07, GHS1.76 and GHS0.41 respectively. 
Meanwhile losses were recorded in four equities, PZ Cussons Ghana Ltd (PZC), Tullow Oil (TLW), Total Petroleum (TOTAL) and HFC Bank (HFC).

Analysts predict similar trend in stock prices for next week.
CAL Brokers still recommends Benso Oil Palm Plantation (BOPP) and Enterprise Group Ltd (EGL) for the fourth successive week.

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.

2011 Year Review of CAL Bank on the Ghana Stock Exchange.

Overview of Company

 CAL Bank Limited formerly Continental Acceptances Limited and then CAL Merchant Bank was incorporated on March 20, 1989 but the bank was licensed in June 1990 and commenced business in July 1990. With issued shares of 238,802,978, CAL Bank is listed on the Ghana Stock Exchange (GSE) and the share price is 0.23p as at December 6, 2011. We would be looking at how this bank performed on the GSE for the 2011 financial year.
As at 31st December, 2010, the Social Security and National Insurance Trust (SSNIT) held 82,363,074 shares in the bank making 34.13% whiles Mr. Afare Donkor, the largest individual shareholder and second largest shareholder held a stake of 7.51% representing 18,120,000 shares.



Analysis

CAL Bank began the year, 2011 with a share price of 0.33p (04/JAN/2011) and because of investor activities & active trades, share price of the bank rose to 0.39p (04/FEB/2011). Meanwhile, the stock price dropped steadily after that time to close at 0.26p on 22/March/ 2011. Further fluctuation of price was recorded from July to October 2011. Ten months down the year, CAL recorded a Year high of 0.39 pesewas and Year-Low of  0.25 pesewas (p). The volume of trade heightened at the end of October and hence was reflected by an increased in share price by some pesewas.
CAL stock and other financial stocks performed badly in November making the Financial Stock Index remain lower than the Base index of 1000.

The Year 2011 obviously was not the best year for most stocks on the GSE and CAL Bank is no exception.

I would be writing on Ecobank Ghana Limited (EBG) in my next post. I would be reviewing EBG stock on the Ghana Stock Exchange for the Year 2011.

[Courtesy: Ghana Stock Exchange, Bloomberg]