Business News

Pioneer Kitchenware suspended from stock exchange

The Ghana Stock Exchange (GSE) has suspended the listing status of Pioneer Kitchenware Ltd (PKL) with immediate effect.

In February 2017, PKL submitted a request to voluntarily de-list the company from the GSE’s Main Market to enable the directors to restructure the company.  

PKL has since withdrawn that request with the intention to restructure its operations and remain listed. 

Under the GSE’s Rules 13(4)(g) and (h), a listed company may be de-listed on grounds of non-disclosure regarding its continuing listing obligations or if the financial situation of the company is significantly threatened.  PKL is currently not in production.

 

“The GSE has therefore decided to suspend the listing status of PKL with immediate effect.  If and when the restructuring of the company is successfully concluded, the suspension will be lifted otherwise, PKL will be compulsorily de-listed at the end of December 2018,” a press release from the GSE stated.

Watch list

Earlier the GSE stated it would de-list Aluworks, Pioneer Kitchenware and Cocoa Processing Company by May this year if they fail to meet some listing requirements. 

Managing Director of the Ghana Stock Exchange, Kofi Yamaoh said, “So far we have those that we’ve put on the watch list…those that we’ve signed on to delist by the end of March, the deal is done. I mean it’s completed.”

 

Source- MyJoyBusinessNews

Ghana Stock Exchange records 130% jump in profit

The Ghana Stock Exchange has recorded a profit of GH¢12, 368,456 for the year ended 31 December 2017. This was a massive increase from the 2016 figure of GHC 5,377,510, indicating a 130% jump in profit.

Speaking at an Annual General Meeting (AGM) in Accra, the Chairman of the GSE, Albert Essien, highlighted on the positive growth trajectory the exchange has been on for the year under review, 2017 and described it as one of the best-performing markets in the sub-region.

He said, “Composite Index (GSE-CI) which measures the performance of the entire market recovered from its negative trend in 2016 to end the year strongly with 52.73% compared with the (-15.33%) recorded at the end of 2016.

The GSE Financial Stock index (GSE-FI) also recorded a positive gain of 49.51% compared to a negative (-19.93%) recorded at the end of 2016.”

 

Mr Essien added, “Market capitalization for all listed securities at the end of December 2017 was GH¢58.8 billion compared to GH¢52.7 billion in 2016 representing an increase of 11.48%.

Domestic market capitalization also gained 45.23% ending December 2017 at GH¢16.2 billion compared to GH ¢10.9 billion at the end of December 2016.”

Capital Market Policy

Mr Essien also disclosed that government through the Financial Services Division of the Ministry of Finance had constituted a capital market working group which will seek to put together a framework that would guide activities and shape the future of the industry in the next ten years.

 

The stock exchange was part of the deliberations of the meetings that were held to develop the terms of reference of the group and had also been appointed as a member of the working group. The working group commenced work in March 2018.

The meeting brought together the governing council, management of the exchange as well as some players in the capital market industry such as representatives of listed companies, stock brokers and licensed dealing members.

 

Source- MyJoyBusinessNews

Stock market managers face tough times in raising capital

Stock market analysts are predicting tough times for the managers of the Ghana Stock Exchange at least for the next couple of weeks.

The bearish performance of the local bourse for some time now has raised concerns on the impact on existing companies.

But it appears the heavier task will be how the managers will cope within this shaky moment of the market.

The managers of the local bourse have a task to help five companies to raise at least 4.7 billion cedis by the end of this year.

This comprises of MTN’s 3.48 billion cedis plus Right to Issue of four other banks totaling 1.19 billion cedis.

This means that the banks are falling on existing investors to bring in new capital.

While MTN is expected to complete the process as part of regulatory requirement for its 4G license, the banks are seeking to meet the new minimum capital requirement of 400 million cedis with the move.

An Economic Analyst with Databank, Courage Boti explains the scope of work ahead of the managers of the bourse currently.

“Generally raising money at this time where a lot seems to be going on doesn’t give much optimal subscriptions to the issuance that is ongoing. MTN we all know is a big player so the floating players that will be available for the companies seeking the Rights to Issue are not coming over, they now have an option in MTN to take up,” he said.

MTN’s IPO has been considered as the largest so far in recent times after that of ADB Bank which targeted 383 million cedis in 2016.

Already, some existing investors are giving up their shares in older stocks to purchase MTN shares.

One reason is that they believe the stocks have yielded appreciable gains hence they prefer to invest in new stocks.

The development has also led to a drop in trading activities from about 20 to 11 percent between January and June this year.

Like other analysts, Courage Boti tells Citi Business News the expectation of interests to be shown by pension fund managers and other institutional investors should normalize the situation on the market.

“The pension fund managers and insurance companies could mobilize some liquidity and get into the market and take some offers. I see them as the suppliers of liquidity when push comes to shove. Indeed they have the money as retail investors won’t give you much,” he asserted.

In all these, a successful transaction for MTN will mean Ghana could be able to access foreign exchange to address recent depreciation of the local currency.

Also, the rise in the banks’ capital will mean their ability to undertake huge ticket transactions and boost the local economy.

 

Source- CitiBusinessNews

Stock market sentiments remain bearish

Market sentiments remained bearish for May as the Ghana Stock Exchange (GSE) - Composite Index failed to find support at the 3,400 levels. The benchmark index closed the May transactions at 3,167.5 points.

According to Nordea Capital Investment Stock expert review of the May trading, made available to Ghana News Agency in Accra, the news of a further cut in monetary policy rate to 17 per cent failed to calm investors as they exited Ghanaian equities.

According to the Nordea Capital Stock Expert, the selling pressures intensified across sectors as profit-taking led to several equities erasing some of their earlier gains, whiles some investors sought positions in certain dividend-paying stocks.

Consequently, ten equities edged higher whiles nine declined, but the quantum of losses was enough to keep the bourse lower. Enterprise Group Limited backtracked by 27.5 per cent to close at GH¢3.00 per share.

 

CAL Bank lost 26.4 per cent during the month to close at GH¢1.45 per share; CAL’s profit after tax reduced by 6 per cent to GH¢32.1 million on account of slower growth in interest income.

According to the Nordea Capital Stock review for the month, the Standard Chartered Bank dropped 25.6 per cent as a result of profit-taking, which also affected Societe Generale.

Other losers for the month under review included Total Ghana Limited (-15 per cent), GOIL (-10.6 per cent), Ecobank Transnational Incorporated (-9.1 per cent), Fan Milk Limited (-6.5 per cent) and Camelot (-6.3 per cent).

According to Nordea Capital Investment Stock Expert review, the small caps recorded the biggest gains for the month; led by Produce Buying Company, which added a quarter to its value (+25 per cent) to close at GH¢0.05 per share.

 

Aluminium firm, Aluworks also bagged 12.5 per cent to end at GHC 0.09 per share. PZ Cussons and Unilever were also in demand as they both went up by 4.8 per cent and 4.3 per cent apiece.

The other significant gainers were SIC Insurance (+2.4 per cent), Guinness Ghana Brewery Limited (+1.6 per cent), the Republic Bank (+1.6 per cent), Ecobank Ghana (+1.1 per cent), Benso Oil Palm Plantation (+1.1 per cent) and GCB (+1.1 per cent).  

Activity in 27 equities yielded a total transaction value of GH¢260.8 million, which was 471.5 per cent better than the previous month’s performance.  AngloGold Ashanti emerged the most traded equity with respect to value, following successive block trades of 6,200,000 shares last month.  

Nordea Capital is dedicated to growing and preserving client assets and building trust, in partnership with financial professionals and institutions worldwide.

 

The GSE is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990.

Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.

 

Source- MyJoyBusinessNews

Stock market sentiments remain bearish

Market sentiments remained bearish for May as the Ghana Stock Exchange (GSE) - Composite Index failed to find support at the 3,400 levels. The benchmark index closed the May transactions at 3,167.5 points.

According to Nordea Capital Investment Stock expert review of the May trading, made available to Ghana News Agency in Accra, the news of a further cut in monetary policy rate to 17 per cent failed to calm investors as they exited Ghanaian equities.

According to the Nordea Capital Stock Expert, the selling pressures intensified across sectors as profit-taking led to several equities erasing some of their earlier gains, whiles some investors sought positions in certain dividend-paying stocks.

Consequently, ten equities edged higher whiles nine declined, but the quantum of losses was enough to keep the bourse lower. Enterprise Group Limited backtracked by 27.5 per cent to close at GH¢3.00 per share.

 

CAL Bank lost 26.4 per cent during the month to close at GH¢1.45 per share; CAL’s profit after tax reduced by 6 per cent to GH¢32.1 million on account of slower growth in interest income.

According to the Nordea Capital Stock review for the month, the Standard Chartered Bank dropped 25.6 per cent as a result of profit-taking, which also affected Societe Generale.

Other losers for the month under review included Total Ghana Limited (-15 per cent), GOIL (-10.6 per cent), Ecobank Transnational Incorporated (-9.1 per cent), Fan Milk Limited (-6.5 per cent) and Camelot (-6.3 per cent).

According to Nordea Capital Investment Stock Expert review, the small caps recorded the biggest gains for the month; led by Produce Buying Company, which added a quarter to its value (+25 per cent) to close at GH¢0.05 per share.

 

Aluminium firm, Aluworks also bagged 12.5 per cent to end at GHC 0.09 per share. PZ Cussons and Unilever were also in demand as they both went up by 4.8 per cent and 4.3 per cent apiece.

The other significant gainers were SIC Insurance (+2.4 per cent), Guinness Ghana Brewery Limited (+1.6 per cent), the Republic Bank (+1.6 per cent), Ecobank Ghana (+1.1 per cent), Benso Oil Palm Plantation (+1.1 per cent) and GCB (+1.1 per cent).  

Activity in 27 equities yielded a total transaction value of GH¢260.8 million, which was 471.5 per cent better than the previous month’s performance.  AngloGold Ashanti emerged the most traded equity with respect to value, following successive block trades of 6,200,000 shares last month.  

Nordea Capital is dedicated to growing and preserving client assets and building trust, in partnership with financial professionals and institutions worldwide.

 

The GSE is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990.

Criteria for listing include capital adequacy, profitability, spread of shares, years of existence and management efficiency.

 

Source- CitiBusinessNews

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