GSE: Dividend payments to further influence market activities


On the Ghana Stock Exchange (GSE,) year to date market performance has largely been influenced by 2016FY earnings report of listed companies; however the next few sessions of stock market activities will be equally influenced by the declaration and payments of dividends for the 2016FY period.

Societe General Ghana [SOGEGH] recently announced final dividend figure of GHS 0.033 per share with March 27, 2017 as an ex-dividend date.

GN Analysts estimate that the number of market participants for the next two months will increase significantly as a result of dividend declaration and payments by most listed companies.

Market activities will shore-up as a result of the high influx of both retail and institutional investors. Impressive dividends per share churned out by some listed companies will easily equate to high trade volumes as a result of the attractiveness of the dividends to investors.

GN Analysts expect equities like EGH, GCB, FML and UNIL to record some improvement in the stock market trade volumes and values as a result of the growing attraction of the afore-mentioned stocks to retail investors. Undoubtedly, FML could experience a short term price rally when 2016FY dividends on the stock are declared. GCB and EGH will also be an attractive option for most investors as a result of anticipated improvement in the dividend per share to investors.

Trading activity on the bourse ended with 1 loser [TOTAL] yesterday. ETI topped the trading chart in terms of volume as 30,000 shares worth GHS 3,612.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 10.59% and 14.38% respectively.

On the Ghana Alternative Market [GAX,] trading activity on the GAX was hushed as no shares changed hands.

HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.

The Cedi lost marginally to all the major trading currencies yesterday.

The local currency exchanged at a mid-rate of GHS 4.5420 to the USD, GHS 5.5287 to the GBP and GHS 4.7990 to the EURO.

The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 7.84%.



Source: GN Research

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