Highlights from Aluworks (ALW)'s Annual Report - Chairman's Statement

•  The company reduced its net LOSS before tax from GHC 3.35 million in 2011 to GHC 2.33 million in 2012. Due to the loss, no dividend will be paid.

• The recent rights issue to raise additional capital was not too successful. The company could not raise the exact amount it needed to carry out the planned projects. Another right issue should thus be expected.

• The main challenge to the company's future prospects is the onslaught of the Ghanaian aluminium market by Chinese products. The company is counting on government to impose necessary countervailing measures.

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.

Sector by Sector Market Capitalization for 1st Half, 2012 on Ghana Stock Exchange

Courtesy: CBL Research

By the end of the first half of 2012, the most capitalized sector on GSE is the Mining and Oil Sector. This sector had a market capitalization of GHS 48,874.46 million, making 88.81%. This sector can boast of a mining giant,

1st Quarter Analysis of the Manufacturing sector on the Ghana Stock Exchange

The Manufacturing sector on the Ghana Stock Exchange (GSE) include stocks like that of Unilever Ghana Ltd. (UNIL), PZ Cussons Ghana Ltd. (PZC), Aluworks Limited (ALW) and the Pioneer Kitchen Limited (PKL). PKL is no more listed on the GSE with effect from 26^th March 2012 due to a sanction from the exchange for refusing to observe the continuing listing obligation including failure to hold annual general meetings. This move by the GSE reduces the market capitalization and that of the manufacturing sector by about GHS 2 million (about $1.25 million).

This sector on the exchange is dominated by Unilever Ghana Ltd; with a market capitalization of GHS 509.37 million (about $312.50 million), making it the most capitalized in the manufacturing sector.

UNIL

Unilever Ghana Limited (UNIL) manufactures and markets consumer goods throughout Ghana some of which includes toilet soaps, personal products, detergents, and consumable food products.

UNIL: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

This year, UNIL began trading at GHS 6.64 (03.01.12) per share on the exchange and saw price hikes to close at GHS 8.15 as at today with a Year-High of GHS 8.15 and a Year-Low of GHS 6.63. An investment made in UNIL exactly one year ago would yield 31.34% profit.  UNIL records a Price/Book value of 8.0428 in the most recent Quarter with Earning per share and Price/Earnings ratio of 0.5081 and 16.0388 (trailing 12 months) respectively.

PZC

PZC 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

PZ Cussons Ghana Ltd. (PZC) is another company in the manufacturing sector on the GSE. This company is the manufacturer of over-the-counter pharmaceutical preparations, cosmetics and beauty products. PZC began trading on the exchange in 2012 with a share price of 0.24p (03.01.12) and since then, there was no price change. The 1^st quarter did not favour PZC in terms of price change although it traded some volumes of share in the quarter. With a market capitalization of GHS 40.32 million, PZC recorded a dividend yield (trailing 12 months) of GHS 1.5694 and as reported by Bloomberg, an enterprise value of GHS 38.54 million.

ALW

ALW: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 

Aluworks Ghana Limited as the name implies works with aluminum. It is an aluminum rolling mill with produces semi-finished and finished aluminum sheet in coil, circles, flat sheet and corrugated roofing sheets. This company was incorporated on February 24, 1978 and currently has a market capitalization of GHS 6.44 million making it the lowest in the manufacturing sector on the exchange since PKL has been suspended. ALW began the quarter and the year with a 0.13p share price (03.01.12)  and later dropped to 0.12p to 0.9p and now closed at 0.07p per share. With an obvious Year-High of 0.13p and a Year-low of 0.07p/share, ALW has a Price/Book of 0.2355, Earning per share (trailing 12 months) of -0.0977 and an Enterprise value of GHS 28.04 million.

The Manufacturing Sector as a whole did not performed so well despite the driving and dominating strength of UNIL in the sector. Investors should follow closely activities in this particular sector and look for the opportunities.