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.


I see opportunities when stock prices fall


Too many investors in the stock market panic when stock prices fall. Not to say they are not experienced investors to know the trends but even experienced investors panic some times especially when things don’t go as they expect.
I have trained myself to look at the opportunities that come even when I’m losing money.
Unlike trading forex where a loss or continues loss can totally wipe you out of the market, falling stocks only make you paper losses which even creates more opportunities for you to own more of the company.
The Oracle himself said

“The first rule is not to lose. The second rule is not to forget the first rule”.

So if you find yourself losing, buy more to mitigate the loss or totally eliminate it. This way, you will position yourself to gain more when prices rise.
Looking at the gainers and losers for today’s trading session, SPL dropped one pesewa and lost 33.3% in value. And this means with a Ghs 1000 invested, Ghs 330 is gone. (At least on Paper). Or a loss of Ghs 3,300 on a Ghs 10,000 investment in SPL. This is scary but when you know that every move in the market comes with opportunities,  that won’t scare you at all.
SPL is not just 33.3% cheaper but also positions you to make 33.3% gain in just a pesewa increase.
So now that you know,  choose your stocks carefully and when you buy, make sure you follow what Warren Buffett said…. “Never Lose.”

ALW dominated trading as CAL & EGH dropped


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.

GSE Stocks: My 6 Technical Picks regardless of Intrinsic Value

The Ghana Stock Exchange has been performing really bad so far this year. The GSE Composite Index is 9.20% down as at today and the GSE Financial Stock Index is even worse,  recording –11. 38% loss. It looks like there is no hope for there rest of the year although the economy is predicted to get better.
Looking through the various listed stocks,  I see a number of companies that are trading significantly lower than they used to trade in the past years when the market was performing averagely well.
Using my technical analyst’s eye, I won’t hesitate to buy shares in these companies knowing that when the stock market gets back booming,  they will go higher than their current market prices.
1.  HFC BANK (HFC). – HFC is currently trading at 0. 85p and has been trading lower than it has been in the past.  There could be other factors but looking at the General performance of the Financial Stocks this year,  I am hoping it will get back to the tens (that’s trading around Ghc 1.2 – its current year high). 
2.  MECHANICAL LLOYD (MLC) – MLC is currently trading at 0.18p which happens to be its year low and  it recorded a year high of 0. 21p.  I have seen it trade around this range (20s range) for sometime and holding other factors constant,  It’s making a nosedive due to the current pressure in the market.
3.  ALUWORKS (ALW) – ALW is currently trading at 0.09p and has probably experienced more pressure or shock from the systematic risk in the market than most companies. In the past years it has been trading in the double digits (around 0. 14p).  At a point in this year,  it went as low as 0.07p.
4.  ECOBANK TRANSNATIONAL INC (ETI) – ETI is currently 0.17p and heavily responsible for the market’s down turn.  Trading of it is still active on the bourse and I won’t hesitate to buy if my objective is long term focused. It recorded a year high of 0.27p.
5. STANDARD CHARTERED BANK (SCB) – SCB is currently trading at Ghc 15.10 and in my opinion it’s quite lower than it’s performance in the past years on the exchange.  Exactly a year ago,  it was trading at Ghc 20.29. There could be other factors causing it’s current performance aside the risk in the economy but it’s a buy for me.
6.  TOTAL PETROLEUM  (TOTAL )– TOTAL is currently trading at its year low, which is Ghc 4.3.  Last year,  it traded as high as Ghc 6.10 despite the global pressure on oil. As oil prices begin to see a improvement, we shall see how that will reflect in the price of TOTAL. 
So now you know my take based on historical performance of prices. As I mentioned,  there are alot more factors responsible for the price changes in securities on the GSE and could be why some are trading so low but my analysis did not regard any of those factors. One major systematic risk affecting the market is the attractively high returns from Government securities (e.g. Treasury bills) which serves as an alternative for investors. 

Investors get 78.81% return on GSE for 2013. #GSE2013

The Ghanaian bourse ended the year, 2013, strong after climbing 2.06 points in the last trading day of the year. The GSE-Composite Index closed the year at 2,145.20 points, its third highest closing for the year. The change resulted in a 78.81% return for the year, 2013. stock market.
Meaning: If you had invested averagely in all the stocks on the GSE from the beginning of 2013 to the end, you’ll be making 78.81% on you money. GHc 1,000 becomes Ghc 1,788.1.

TOTAL on GSE to pay Interim Dividend on Christmas Eve

● TOTAL has announced an Interim Dividend of GH¢ 0.0771 per share in respect of its 2013 financial year.

● The qualifying date has been scheduled for Wednesday, December 18, 2013. Also, the ex-dividend date is Monday, December 16, 2013.

● TOTAL plans to pay the interim dividend on Tuesday, 24th December, 2013 (Christmas Eve) – a good time to reward shareholders.

Bloomberg fired Ghana Stock Exchange (GSE)? What happened?

What has happened to the relationship between Ghana Stock Exchange (GSE) and Bloomberg?
On 2nd March 2010, Ghana Stock Exchange announced its relationship with Bloomberg and issued a Press Release stating that “GSE data is now available worldwide on Bloomberg ”.

According to Mr. Kofi Yamoah, Managing Director of the Ghana Stock Exchange, “this new development is in line with the GSE’s vision of reaching out to investors globally and ensuring
that timely and efficient trade information is available at all times. It is our belief that the relationship with Bloomberg will enhance the attractiveness of our market to both local and international investors and position the Ghana Stock Exchange (GSE) as the preferred investment destination in Sub-Saharan Africa”.
To seal the relationship, this was what Gerard Francis, Bloomberg’s head of Global Emerging Markets said in 2010, “Bloomberg is the first vendor to offer the global distribution of real time exchange data from Ghana. This addition recognizes the increasing investor appetite for investments into Africa. Bloomberg users now have access to live prices for all the exchanges in West Africa. It reinforces our commitment to be the leading source for real-time prices for emerging markets,”
Two to three years down the line, my question then is, what has happened to this relationship? As at now, you cannot find any stock that is listed on Ghana Stock Exchange on Bloomberg as it used to be. The only link is the listing on GSE Composite Index (GGSECI) which comes with inadequate figures & graphs and does not indicate accurately what is happening on the stock market.
What has happened? Who is not doing his or her job?  Investors all over the world and the good people of Ghana living abroad deserve to know the details of this development.
A search for any company GSE-listed company on Bloomberg brings only articles written on those companies but not the financial data or the various Statistics we used to get on Bloomberg.
This is not helping us at all. Again and Again I ask, what has happened?