*On the Ghana Stock Exchange
SWL once again failed to impress investors as it reported a loss of GHS 773,100 in Q2-2018. Losses reported in Q2-2018 were largely driven by a decline in its revenue. Its turnover fell to GHS 237,544 in Q2-2018 from GHS 857,442 in Q2-2017.
Revenue generated in Q2-2018 was insufficient to cover its cost of sales, which increased significantly to GHS 244,719 in Q2-2018 from GHS 72,459 in Q2-2017. Its earnings per share slipped to GHS -0.0354 in Q2-2018 from GHS 0.0018 in Q2-2017.
SWL’s ability to cover obligations on its short-term liabilities worsened as its current ratio slipped to 0.07x in Q2-2018 from 0.35x in Q2-2018. Its total asset turnover, which indicates the efficiency with which it uses its assets to generate revenue, fell to 0.06x in Q2-2018 from 0.24x in Q2-2018. The provision of digital books, which can be easily accessed and purchased online, could re-position the company to reach a much larger market to boost its revenues.
In terms of share price performance, SWL’s share price has stayed at GHS 0.05 since year open despite the decline in its earnings. SWL’s share price is expected to remain steady at its current price in the medium to long-term anchored on its current performance and stock liquidity.
The Composite Index and the financial stocks index gained 12.15 points and 2.36 points to peg at a YTD return of 11.60% and 14.84% respectively. There were 2 gainers [CAL & MTN.GH] and 4 losers [GOIL, GGBL, SIC & ETI]. GOIL topped the charts in terms of volumes as 19,197,100 shares worth GHS 38,411,300 changed hands.
On the Ghana Alternative Market
Trading activity on the Ghana Alternative Market was hushed as no shares changed hands
On the Currency market
The Cedi appreciated marginally against the Euro and the British Pound but lost to the Dollar at the end of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.7569 to the USD, GHS 6.1813 to the GBP and GHS 5.5100 to the EURO. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date depreciation of 5.93%.
By GN REASERCH