Share price of Cal Bank expected to remain stable

On the Ghana stock exchange

CAL leads the list of actively traded stocks in terms of volume as approximately 3,029,700 shares have changed hands since year open.

A look at trading data indicates that CAL shares appear to have been overbought particularly in the 10th and 11th months of 2016 and 2017 based on the relative strength index rising above 70.

 

CAL’s stock price increased from GHS 1 in October 2017 to 1.05 in November 2017. CAL’s stock price since November 2017 have appreciated significantly and is trading currently at GHS 1.26.

 

The improvement in CAL’s fundamentals based on its Q-3 2017 financials explains in part the appreciation of its price from the latter part of 2017.  CAL’s return on equity increased from 16% in 2016 to 18% in 2017 based on Q3-2017 financials. Its liquidity position improved, rising from 28% in 2016 to 42% in 2017 and therefore placing it in a better place to meet its anticipated liabilities. The company’s cost efficiency also improved with its cost-to-income ratio declining from 42% to 40%. CAL has rewarded investors with a YTD return of 16.67%. GN analysts anticipate that its stock price would remain relatively stable in the very short term.

 

Activity on the stock market ended with 12 gainers and 8 losers at week close. FML topped the gainer’s list in absolute terms with GHS1.14 to close the week at GHS 17.64. On the flip side TOTAL lost GHS 0.60 to close the week at GHS 5.03. The Composite and Financial Stock Indices inched up by 2.76% and 2.52% to close the week at 29.41% and 35.19% respectively. Trading activity in terms of volumes on the stock market increased by 79.52% in the week under review. The total volumes of shares traded increased by 1,482,741.00. Total values of shares traded also increased to GHS 11,134,377 representing 78.21% appreciation week on week.

 

On the Ghana Alternative market

Trading activities on the GAX ended last week with 1000 shares of ILL worth GHS 90 changing hands.

 

On the Currency market

The Cedi made a recovery against the Dollar and lost to the Euro and British Pound at week close. The local currency exchanged at a mid-rate of GHS 4.4181 to the USD, GHS 6.947 to the GBP and GHS 5.4946 to the EURO as at week close. GN Market Analysts posit that the Cedi is poised to lose value marginally on the forex market in the short-term.

 

By GN Research

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