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.
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.
