Ghana Stock Exchange Composite Index: So far in 2012

The Ghana Stock Exchange Composite Index (GSE-CI) includes all ordinary shares listed on the GSE with the exception of those companies whose shares are listed on other exchanges. (e.g.  ETI, TLW).  The base index is 1000 and the index is a market capitalization weighted index.

Last year, the index closed at 969.03 (30-12-11) below the base index. There were some highs and lows this New Year and investors are hoping to see the index above the base index.

Below is how the index fared so far in 2012. [22-12-11 to 19-01-12]

This Week in focus on the Ghana Stock Exchange (16-01-12 to 20-01-12)

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]

What you should know about Accra Hearts of Oak and their IPO

Accra Hearts of Oak Sporting Club popularly known as PHOBIA was one of the earliest clubs to be formed in Ghana in November, 1911. This sporting club has currently issued an initial public offer and this is the first of its kind in Africa. If this IPO is successful, shares would be listed on the Ghana Stock Exchange and would make a historic mark in the IPO records in Ghana and Africa as a whole.

There are so many things that make an IPO successful and some important factors to consider are the financial status and future prospects of the company. Accra Hearts of Oak although currently in debt has assured the public that its operations would change drastically in a positive way after the IPO. The Board Chairman, Mr. E. M. Commodore-Mensah says the capital from the IPO would be used to enhance activities in the club. Experts are predicting that, this IPO would be successful because of the support or fan base of the club and the sentiments attached to the club by the fans. Apart from Kumasi Ashanti Kotoko (a football club), Hearts of Oak has the largest fan base in Ghana.  Nevertheless, people are with the view that the price per share (0.50p) is too expensive looking at the stature of the club.

Hearts of Oak has won twenty (20) titles in the Ghana Premier League and six of them were consecutive (1997 to 2002). The Sporting club has also won nine (9) championships in the FA cup and had one CAF championship league title in 2000. In addition, they are seven times winners of the Ghana Telecom Gala. One of the most prestigious cups in Ghana is the Top Four Cup and Accra Hearts of Oak has won it for three (3) times and was African Super Cup champion in 2001.

With all these wins, it is quite obvious that there is a lot more to do, now that the Ghana Premier league and other leagues are developing. Moreover, their closest rival, Ashanti Kotoko has remained a force to reckon with.  

The financial statement of the club showed impressive results for last year despite the bad performance in the league. Would this affect the IPO subscription in anyway? The shares of the club are to be traded in the OTC market and this could also affect the subscription of the IPO, meanwhile, lead brokers SAS Brokerage Services denies that.  The truth would be out after the offer ends on 29^th August, 2011. They ‘never say die until the bones are rotten’