On the Ghana stock exchange
SIC currently leads the market in terms of year to date returns. The share price of SIC has scaled up from GHS 0.10 at year open to GHS 0.37 as at the end of trading yesterday. SIC remained profitable in 2017. From the company’s Q3- 2017 financial report, profits grew from GHS 7.08 million in 2016 to 7.77 million in 2017. Earnings per share increased from GHS 0.0362 in 2016 to GHS 0.0397 in 2017 making it attractive to some investors.
SOGEGH has rewarded investors with a YTD return of 100% as at the end of trade yesterday. The company’s fundamentals remain solid. Analysis of its Q3-2017 financials shows that its profit increased by 56% in 2017. SOGEGH’s return on equity increased from 16% in 2016 to 18% in 2018. The quality of its loan portfolio improved with loan loss provision ratio declining from 3% in 2016 to 2% in 2017. The company’s cost efficiency has also improved with its cost to income ratio declining from 59% in 2016 to 56% in 2017. These performance indicators coupled with the appreciation in its share price demonstrate that the company’s management is doing a good job at adding value to shareholders’ investment.
ETI’s YTD return stands at 68.75%. Its improved fundamentals continue to make this company attractive to analysts and investors. The company’s Q-3 2017 financial report shows that its profit increased from GHS 839.70 million in 2016 to GHS 834.35 million in 2017. The company’s liquidity position improved with its liquidity ratio increasing from 34.66% in 2016 to 42.84% in 2017. ETI’s cost efficiency also scaled up with its cost to income ratio falling from 65% in 2016 to 62% in 2017 which contributed to growth in its profits. GN analysts anticipate that the share price of ETI and SIC will remain relatively stable at its current price in the short term based on its share price performance. It is also expected that the share price of SOGEGH will scale up further in the short to medium term based on its fundamentals and share price performance.
The Composite index surged by 0.99 points to peg at a YTD return of 29.44%. The Financial Stock index however, dipped by 1.98 points largely driven by a depreciation in the share price of GCB and EGH by GHS 0.06 and GHS 0.05 respectively. Activity on the local bourse ended with 6 gainers [GOIL, SOGEGH, BOPP, EGL, UNIL & MLC] and 5 losers [GCB, EGH, FML, TOTAL & PBC]. GOIL topped trading in terms of volume as 124,800 shares worth GHS 505,325 changed hands.
On the Ghana Alternative market
Trading on the GAX was hushed as no shares changed hands yesterday.
On the Currency market
The Cedi made a recovery against the British Pound and the Euro at the close of trading yesterday. The Cedi to dollar exchange rate remained stable. The local currency exchanged at a mid-rate of GHS 4.4181 to the USD, GHS 6.1757 to the GBP and GHS 5.4707 to the EURO. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market recorded a year to date depreciation of 1.81%.
By GN Research