GSE recorded the highest single trade ever (Ghc 221.78mn)

The GSE Composite Index lost 2.23 points, after ETI stocks recorded a negative price change. The benchmark index closed today's trading at 1,796.31 points, with a year-to-date return of 6.35%. The GSE-Financial Stock Index also recorded a negative return of 0.25% as one financial stock slipped. The index closed trading today at 1,684.95 points from 1,689.21 points.
 
Trade volumes and values more than doubled compared to that of the previous sessions. CAL dominated trading by a volume of 99.97 % and a value of 99.95%.The total volume of shares traded was 151.88 million, valued at GHS221.78 million the highest single trade ever.
 
Six equities appreciated whiles ETI lost ground today. - CBL

GSE Composite Index starts the year positively

GSE Composite Index started the year on a positive note, recording a 9.11 point increase from 1,689.09 points to close at 1,698.20 points. The index started the year with a 0.54% return.
 
Sixteen equities recorded activity with 1,057,849 shares being traded at a value of GHS 2,470,257.49. UTB led the market with 40.48% of shares traded while FML on the other hand had 92.24 % of the total value realised.
 
CAL, EGH, FML, GCB, SCB and TOTAL recorded gains respectively. No losses were recorded today.

- CBL RESEARCH

What To Do Before Buying Any Stock

In all my investment coaching I tell my clients who want to venture into stocks trading or investment, to do one thing and that's what you should do before buying any stock in 2017.

And that is; READ MORE ABOUT EVERY COMPANY YOU DESIRE TO OWN.

Knowing more about the companies you buy or sell always gives you some upper hand and courage.

So get to work. And this is how;

On the Ghana Stock Exchange for instance there are about 35 listed companies. In 2017, target to read the Annual Reports, related news and learn more about what each of these 35 companies do.
You can dedicate one week to study about one company and before you know it, you will be more abreast with what's happening in the Market and then you can make informed decisions.
Most of the information you will need can be found here (www.annualreportsghana.com)
Fast readers can take two companies a week and read on.
Do not be scared of the figures and do not worry about interpreting the financial statements. The goal here is to know what these companies do to make profit, nature of their business, what industry they operate in, who is on their boards or management, who are the top 10 or top 20 shareholders, and any other relevant information you will get in their annual reports.

Doing this will not only get you informed but also build up some zeal or interest in you towards investing on the stock market.

You can apply this principle to other Investments you intend to hold, being it real estate, mutual funds, fixed income securities etc.

Simple task that always pays. Enjoy reading.

Financing Your Investments Using Borrowed Money: Margin Trading on GSE

image credit: claytrader.com

I am still deeply concerned about the speed of growth of the Ghana Stock Exchange. Market players are blaming it on the low level of activities on the market because investors are few and hence ‘Ghanaians do not invest enough’.  The question then is, do the few investors we have, get the necessarily tools, options and systems to facilitate the investment process? In cases where investors want to buy more stocks but short of funds, what happens next? Is that the end?

That brings me to the concept of Buying Stocks on Margin. When are we reaching a point where we can buy stocks and other securities on margin? Every time I interact with my colleagues in the market, I hear the response that, it’s in the pipeline. Truly, this pipeline is really long.

What Does Buying on Margin Mean?

Simply put, it is borrowing part of the total purchase amount of a position using loan from a broker. Margin trading allows you to buy more shares from a listed company with the financial help from your broker than you can normally buy. With Margin trading on Ghana Stock Exchange, the market doesn’t only increase in activities but also gives brokerage firms a lot of opportunities to grow bigger. 

Investor who trades on Margin vrs one who does not:

Margin is a double edge sword. As much as margin trading of stocks can bring some good things into the market, so is the risk and let’s see how bad it is.

Here is an example:  Imagine Investor A & B has Ghc 50,000 each worth of stock in their brokerage accounts and this allows them a margin debt of Ghc 50,000 to buy extra stocks (let’s say in a company priced at Ghc 1 per). If Investor A takes the margin available and buys more stocks at the said price, he gets Ghc 100,000 worth of stocks whiles Investor B only has Ghc 50,000 in his / her account. If the share price appreciates to Ghc 2 (100% increase), Investor A will now be worth Ghc 200,000 whiles Investor B will be worth Ghc 100,000. In this case, Investor A can then pay his debt of Ghc 50,000 to his brokers leaving him / her Ghc 150,000 which is Ghc 50,000 more than Investor B who never took the margin available.

On the other side of the coin, when share price in the said company falls to 0.50p, (50% lower), Investor A will get a Margin Call from his brokers requesting him top up his account with more money. In this case, the investor does not only lose 50% of his initial portfolio value but also has a debt of Ghc 50,000 to pay.

It’s always good to take advantage of the money available from your brokers but you need to be aware you stand a chance of wiping out all your equity, leaving you broke or bankrupt.

The beauty of margin trading in the Ghanaian market is that, you cannot wake up over night and see prices of stocks deep so low as a result of any news as it happens on the advanced stock exchanges. Thus if you do your homework well enough, you stand a chance of making a lot more than you equity will allow you. This obviously can create a lot more activity on the Ghana Stock Exchange.

Losses on 7 stocks halted 12-day winning streak on GSE

Losses on 7 stocks halted the 12-day winning streak of the GSE Composite Index. The index closed trading at 1,824.42 points, down 8.23 points, from 1,832.65 points. This brings the year-to-date return to -8.55%.

The GSE financial stocks index also declined by 4.02 points to close trading at 1,733.67 points.

UTB and FML dominated trading with 41.62% of the traded volume and 68.29% of the value traded respectively. 0.70 millions shares were exchanged for GHS2.83 million. The traded volume and value were 2 folds and 8 folds respectivley, compared to the previous session.

EGH was the only gainer. CAL, EGL, ETI, GOIL, PZC, SIC and TOTAL saw their share prices decline.
Courtesy: CBL.

GCB recorded its 13th gain from start of the 3rd quarter on GSE

The GSE-Composite index closed mid-week's 1.99 points high, from 1,789.73 points to 1,791.72 points. The year-to-date currently stands at -10.19%.

The GSE financial stocks index closed at 1,686.52 points, up 2.87 points from 1,683.65 points.

A total volume of 0.15 million shares was traded for a sum of GHS0.03 million. The traded volume and value decline by 37.85% and 95.09% respectively. UTB and ETI were the dominant equities, accounting for 49.33% and 34.05% of traded volume and traded value respectively.

ALW bounced back from a GHS0.02 loss on Tuesday to close trading at GHS0.14. GCB recorded its 13th gain from start of the thrid quarter this year to date, to close trading at GHS3.34. PBC and UTB saw their share prices decline.

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. 

How the stock market really works

Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rs 10.

The villagers, seeing that there were many monkeys around, went out to the forest and started catching them..

The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort.

He further announced that he would now buy at Rs20.

This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms.

The offer rate increased to Rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at Rs 50!

However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers. Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell it to him for Rs 50."

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!

Welcome to the 'Stock Market'!!!!!!!!

7 things you should know about Cocoa Processing Company (CPC on GSE)

I'm just inspired today to write something about Cocoa Processing Company (CPC on the Ghana Stock Exchange) and bring out some things people don't know about this company.
On the Ghana Stock Exchange, the 1965 established company, is trading at 0.02 pesewas per share and has been so for quite a long time. I have realised that some of the best cocoa products including the delicious chocolates we consume have been the brainchild of CPC. Later in this post, I'll list some of those great products that we never associated with this company.

1. Do you know that CPC has received certification for two management systems, i.e a) International Organisation for Standardization (ISO 9001:2008) and b) Codex Alimentarius Hazard Analysis & Critical Control Points (HACCP)?  These obviously give CPC a competitive advantage over other industry players in the West African region among other things.

2. Do you know that CPC made a loss of US$11.8million in the previous year, 2013 and US$10.2 million loss in 2012? A substantial part of the company's liabilities are due to Ghana Cocoa Board (COCOBOD)- one of the shareholders of CPC.

3. Do you know CPC gets just around 5% of it's export revenue for its total operations and the rest 95% is shared between COCOBOD as payment on account of the outstanding loan facilities? Hmmmm,

4. Do you know the Ghana Cocoa Board owns 57.73% of CPC and the Government of Ghana (Min. of Finance) owns 26.13% ?

5. Do you know only 3 out of about 12 directors own shares in the company as at Sept. 2013?

6. Do you know there have been changes to the board of CPC? Below are the changes;
Retirees: - Mr. Charles Debrah Asante and Anthony Fofie.
Appointees: Nana-Oduro Owusu, Dr. Stephen Kwabena Opuni and Mr. Jacob Ofosu.

7. Do you know the following products are the brainchild of Cocoa Processing Company?
a) Your favourite Chocolate spread ---- "Choco-delight".

"Choco-delight"

b)  Your saviour on valentine's day: ....... "Kingsbite Chocolate", Gift Bar etc

"Kingsbite Chocolate"

c) The Students Companion: - .......... "Alltime" - I love this product and now you know who is behind it. 

"Alltime"

d) Well, I never tasted this natural cocoa powder before, but it looks good no wonder it's... "Royale". 

"Royale"

Now you know.

Ghana Stock market recovers as 6 stocks gained.

The performance indicator of the local bourse, the GSE-Composite Index, recovered from its two days loss, following price increments on six stocks. The index closed at 1,990.57, a 0.20% increase from Tuesdays closing of 1,986.51.The GSE-Financial Stock Index was lifted by gains on three financial stocks to close at 1,700.96 from 1,697.03.

A total of 0.89 million shares valued at GHS 2.97 million traded. Today's trade volume and value exceeded the previous session's by  more than three (3) and four (4) times respectively. EBG led the market in terms of volume and value with 55.99% of the total volume and 71.82% of the value traded.

PZC reached a new year-high after gaining 3 pesewas to close at GHS0.80. Other gainers were CAL, EGL, FML, SCB and EBG. TLW was the sole loser.

Ghana Alternative Market (GAX): Some Facts and Figures

Many investors are waiting for the GAX to start operating. Some important points or assurance to note about the GAX are as follows:
 It has been more than four months since the initial schedule for the GAX to start operation.
 All systems for the operation of the Alternative market are in place and financial resources have been mobilised to support the operation.
 The concept of the GAX is to address the complaints of Small and Medium Enterprises (SMEs) about not being able to raise capital on the regular market.
 Ghana Stock Exchange (GSE) would allow SME’s with minimum capital of Ghc 250,000 and operating for a year to list on the GAX.

AngloGold Ashanti (AGA) Announces Executive Leadership Structure

In a News Release issued by AngloGold Ashanti (AGA), it was announced that there would be changes to its executive leadership team as a central part of its transition to streamline the business and deliver long-term, sustainable value to stakeholders. Click to read full news release...

Dividend payments for some stocks on the Ghana Stock Exchange

Courtesy: CBL

Ghana Stock Exchange Composite Index increased for the second successive session.

GSE Composite Index increased for the second successive session as it went up by 0.21 points to 1,141.14 points which is equivalent to 17.76% year-to-date return.

A minimal 0.03 million shares traded on the GSE today and the transactions amounted to GHS0.11 million. SPL was lead equity for the day in terms of volume as its volume accounted for 39.71% of the overall market volume while SCB came top in terms of value traded with 86.47% of the total market value.

Only SCB experienced a price change as it went up by GHS0.01 to end the session at GHS9.01.

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Ghana Stock Exchange recorded a 3rd straight win as new year-highs ended mid-week trading

Let us see what happened on the Ghanaian stock market so far in this week. Having gone three successive sessions without a positive return, the Ghana Stock Exchange-Composite Index picked up 7.74 points, to close trading at 1,042.37 points. The change brought the year-to-date return to 7.74% as at Monday. Gains in Ecobank Transnational Inc,(ETI) and UT Bank (UTB) ended a five-day losing streak as the GSE-Financial Index climbed 10.76 points clear of Friday's closing at 872.12 points.
A total of 0.20 million shares

Ghana Stock Exchange records the third successive loss to end the week in red

The local bourse recorded its third successive loss, the fourth in the last five sessions, closing 3.65 points lower than Thursday's closing, at 1,034.63 points. The year-to-date return on financial stocks fell beneath the zero mark at -0.20%, as the index lost 4.82 points to close at 861.36 points.

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.

Tues. 15.05.12: Ghana Stock Exchange (GSE) Market Update.

Tuesday GSE Market Update:

The second day of trading on the Ghana Stock Exchange this week has ended with some equities trading shares.

A 3.26% price gain in Tullow Oil (TLW) pushed the GSE-Composite index up, despite losses in two equities, to close the day at 1,048.50 points from 1,048.38 points. The change brings the year-to-date return to 8.20% as reported by CAL Brokers.

Courtesy: CAL Broker Ltd. (15.05.2012)

The Financial Stock Index however, declined by 0.69 points to close at 908.83 points.

A total of 0.99 million shares valued at GHS 0.50 million were traded. The trade volume and value, compared to the previous session, increased by more than five and six times respectively.

CAL Bank (CAL) dominated trading in terms of volume, accounting for 78.57% of the total trade volume while Unilever Ghana (UNIL) led in terms of value with 47.39%.

TLW was the only gainer.  Benso Oil Palm Plantation (BOPP) and Enterprise Group ltd (EGL) recorded losses.


Courtesy: Ghana Stock Exchange & CAL Brokers

Dividend Payments released for some companies on the Ghana Stock Exchange

The time has come again when shareholders look up to their various companies hoping dividends would be paid. Dividend investors are also looking for dividend stocks on the Ghana Stock Exchange whiles other type of investors hope the profits would be plough back for the growth of the companies.  This is the time where preference shareholders get paid first before the ordinary shareholders.

Some companies on the exchange are planning for their Annual General Meetings (AGM) and hoping to pay dividend for the financial year. Let’s take a closer look at what directors of those companies have decided to pay.

Companies	Dividend per share(GH cedis)	Payment Date
Standard Chartered Bank (SCB)	3.05	May 31, 2012
Ecobank Ghana (EBG)	0.24	May 18, 2012
Benso Oil Palm Plantation (BOPP)	0.0690	June 29, 2012
SG-SSB	0.04	April 30, 2012
HFC Bank (HFC)	0.022	May 14, 2012
Trust Bank Limited (The Gambia) (TBL)	20 butus	April 12, 2012
PBC Ltd (PBC)	0.0173	April 30, 2012
SCB-PREF	0.0324	March 30, 2012

For most of these stocks, the qualifying dates for their dividend payment are in March and April 2012. This simply means every potential investor who wants to enjoy the above dividend payments must buy the shares of those companies and be registered in their books before March or April. SCB, EBG and HFC for instance, have their qualifying dates on April 20^th, 19^th and 18^th, 2012 respectively, therefore investors must note these else would have to wait for another financial year to enjoy dividend payments.

AGMs

Ecobank Ghana ltd, HFC Bank Gh ltd and Ayton Drugs Manufacturing Company ltd planned to go for their Annual General meetings on April 27^th, 26^th and 5^th respectively. SG-SSB limited to have theirs on March 30^th whiles Benso Oil Palm Plantation Ltd planned for May 3rd, 2012.

Shareholders must do well to attend these meetings in order to get a better knowledge of the company and its plans for the future.

Keep investing, especially in the Ghanaian financial market.