The Ghana Stock Exchange (GSE) for the first six months of the year has recorded a very impressive performance as against the whole of last year.
The two market indices, the GSE Composite Index and the GSE Financial Stock Index which are used to measure the performance of the market have recorded remarkable upward movements.
From January to July 2013, the GSE Composite Index stands at 61.39 per cent, as against 6.06 per cent for the whole of 2012. The GSE Financial Stock Index equally stands at 61.66 per cent, as against 0.53 per cent for the entire 2012
Total market capitalisation of the bank for the period under review stands at GH¢55.78 billion as against GH¢54.95 billion in 2012 with domestic capitalisation doubling from GH¢5.57 billion to GH¢10.57 billion.
Total volume of trade is equally on the rise. At the close of business on July 31, total trade stood at 209.16 million as against 218.13 million, for the whole of last year.
In terms of value, total trade stands at GH¢230.51 million, as against GH¢102.2 million for the whole of last year
Reviewing the market, Bloomberg and other international news wire service described the market as “best performing market in Sub-Saharan Africa”.
Listed companies also recorded significant price increases during the first half year. Out of the 34 companies, CAL led the gainers with 194 per cent followed by EGL with 191 per cent, BOPP, 150 per cent, GCB, 134 per cent, and PZC, 122 per cent.
Seven companies gained more than 50 per cent in their share price while eight companies gained above 10 per cent. Eleven companies maintained their prices with only four recording some level of depreciation.
Comimenting on the performance of the market, Mr Kofi Yamoah and Mr Ekow Afedzie, the Managing Director and deputy Managing Director respectively of the exchange attributed it to the new pension fund regime which had allowed pension fund managers to invest part of the funds in listed companies on the stock market, as well as the sterling perforamnce of most of the listed companies on the market.
This was corroborated by First BanC Financial Services half year report on the market. According to the report, the implementation of the three tier pension scheme has contributed massively to increased activity in both the fixed income and equity sectors of the financial market.
It further stated that fund managers are looking for good financial instruments to meet and maintain the five to 10 per cent equity asset allocation.
“Investor interest in the market appeared to have soared, as the number of equities changing hands increased by 161 per cent, compared to the previous period. Volume traded also exhibited a similar trend; hence growing by 435 per cent,” it said.
The equity market was expected to maintain its uptrend in the second half, the report stated, but was quick to add that “market volatility is likely to burgeon as investor’s decision on selling winners and budgeting for the next fiscal year dominate trades”.
If the impressive financial performance of most of the listed companies continues in that direction, it is likely that investors will rein in a lot of capital gain by the close of the second half of the year.
The half year results of Ghana Oil Company Limited (GOIL) released late July showed that the company made positive gains in the six-month period.
GOIL, which markets refined petroleum products to players in the aviation, mining and transport sectors, recorded a pre-tax profit of GH¢8.16 million in the first half of 2013, compared to GH¢7.07 million posted in the same period last year.
After a tax deduction of GH¢2.04 million, GOIL’s net profit closed the period at GH¢6.12 million, higher than the 2012 first half figure of GHC5.30 million.
The interest income of the GCB Bank Limited rose from GH¢150.29 million in the first half of 2012 to GH¢256.76 million in the first half of this year, its half year results released last week showed.
This represented a 41.5 per cent growth in the bank’s interest income over the six month period. The report further showed that net profit for the period increased to GH¢90.43 million, compared to GH¢50.21 million recorded in the period before.
The net profit of oil marketing company, TOTAL Petroleum, rose by 13.93 per cent from the first half of 2012 to GH¢20.17 million in the first half of this year. The rise was as a result of an 11.22 per cent growth in the company’s gross revenues over the six-month period.
TOTAL’s half-year financials, released late last month, showed that its gross revenue from GH¢599.78 million recorded in the first half of 2012 to GH¢667.06 million in the period under review.
The revenue for Mechanical Lloyd Company Limited rose marginally to GH¢18.86 million in the first half of the year.
The company’s current revenue is about five per cent higher than the GH¢17.99 million recorded in the first half of 2012.
Its first half year results showed that operating profit was GH¢1.66 million in the first half of 2012, up from the previous period’s close of GH¢1.35 million.
Societe Generale made GH¢82.05 million in revenue as of June this year, up from the GH¢71.48 million the bank realised for the same period last year.
Net operating income for Societe Generale improved to GH¢66.57 million from the 2013 first half figure of GH¢59.19 million.
Net profit also witnessed an increase, rising from GH¢12.22 million the period before to GH¢15.53 million in the period under review.
The bank’s non-performing loan (NPL) ratio was also reported at 6.78 per cent, down from the 2012 first half rate of 7.34 per cent.
The performance of the general market showed a marked improvement in return, compared to the same period in 2012.