WEEKLY MARKET WATCH SIC-FSL INVESTMENT+ RESEARCH| MARKET REVIEWS|

28th May, 2015

ACCRA BOURSE SOARS, DESPITE…! STOCK MARKET The excitement on the (GSE) increased INDICATORS WEEK WEEK END CHANGE last week, as appetite for capital market investment improved. OPEN Indeed, recent corporate actions like the increases in petroleum Market Capitalization products and the worsening of the local currency were looked (GH¢'million) 64,440.64 64,575.13 0.21% upon to thwart market performance, however, the contrary was Market Capitalization (US$'million) 16,499.13 16,305.20 -1.18% true as players appeared unperturbed of current happenings, intensifying their bets on shares. Volume traded (shares) 2,590,114.00 1,395,992.00 -46.10% Shares of Limited (EBG), Total Petroleum Value Traded (GH¢) 2,089,785.25 2,293,571.34 9.75% Ghana Limited (TOTAL), Enterprise Group Limited (EGL), Fan Value Traded (US$) 535,060.36 579,126.18 8.24% Milk Limited (FML) and Aluworks Limited (ALW) were the most Table 1: Market Summary sought after in the week. INDEX ANALYSIS In the end, all the major market indicators went up; with the INDICATORS Closing Week YTD GSE-CI closing last Thursday’s trading at 2,362.28 points, Level Change CHANGE representing a year-to-date change of 4.48% whilst the GSE- FSI also settled at an annual yield of 7.96% to close the week GSE Composite Index 2,362.28 1.06% 4.48% at 2,422.33 points. Also, the SIC-FSL Top 15 index (SIC-FSL T-

SIC-FSL Top 15 Index 4,476.58 0.70% 13.53% 15) which measures the performance of liquid equities, posted the biggest returns on the market last week, closing at GSE Financial Stocks Index 2,422.33 1.25% 7.96% 4,476.58 points, which represented a return of 13.53%. Table 2: Key Stock Market Indices

LIQUIDITY

In relation to the reduced number of trading days following the holiday that accompanied the “Africa Union (AU)” celebration, total shares traded declined heavily last week. A total of 1.40 million shares exchanged hands which meant a drop by 46.10% in the previous week level. However, corresponding value traded increased from the

previous GH¢2.09 million to GH¢2.29 million.

In all, 22 out of the 35 listed companies were active last week. Limited (GGBL) recorded the highest trades with Fig 1: Year -to -date returns respect to volume and value. GGBL contributed 31.53% of total shares traded, and this was valued at GH¢1.41 million.

MARKET MOVERS STOCK Wk Open Wk End Change % TICKER change Search for EBG shares intensifies ALW 0.05 0.07 0.02 40.00% Investors’ appetite for Ecobank Ghana (EBG) shares increased, as the EBG 8.62 9.02 0.40 4.64% hunt for holding position in the bank pushed price further up last week, from the previous GH¢7.60 to a new record price of GH¢9.02 per EGL 1.65 1.80 0.15 9.09% share. Truly, the confidence investors have in the Bank appeared to be growing week-on-week, perhaps in line with better-than-expected FML 5.33 5.37 0.04 0.75% first quarter financial results (Q1’15). GOIL 1.19 1.22 0.03 2.52%

The bank posted an improvement of 28.98% in Q1’15 over a similar SPL 0.02 0.03 0.01 50.00% period last year, touching GH¢91.04 million according to the statement. This sterling performance by the Bank appeared to be SOGEGH 0.94 0.95 0.01 1.06% behind EBG’s recent hike in price, pushing up the Bank’s value last TOTAL 5.64 5.92 0.28 4.96% week. UTB 0.17 0.18 0.01 5.88% In fact, the prospect of higher price discovery still remains bright, as shareholders demand higher value from prospecting buyers. Table 3: Gainers for the week

TOTAL trims-down losses

The oil-marketing giant; Limited (TOTAL) STOCK Wk Open Wk End Change % ended the week as the second best price gainer on the exchange. TICKER change TOTAL recorded a 28-pesewas rise in absolute value to trim-down its GCB 5.21 5.14 -0.07 -1.34% year-to-date losses from the previous 7.54% to 2.95% last week. The stock closed trading at GH¢5.92 per share. PKL 0.06 0.05 -0.01 -16.67%

The rise appeared to have been fan by the company’s Q1’15 results. SCB 20.20 20.12 -0.08 -0.40% TOTAL posted a profit of GH¢14.43 million in Q1’15 compared to the Table 4: Laggards for the week GH¢6.82 million recorded in Q1’14. In line with the above, investors’ expectations appeared to have been whipped up, hence the rush to consolidate their holding positions.

CORPORATE NEWS

SAM-WOODE LIMITED (SWL) ANNOUNCES DIVIDEND PAYMENT: Management of SWL has proposed a dividend payment of GH¢0.004 to shareholders in respect of the 2014 financial year. In view of the above, any investor who buys SWL shares before Friday, June 5, 2015 will be entitled to the dividend payment. The proposed payment date will be Friday, July 24, 2015. On the other hand, the company will hold this year’s AGM at the GNAT

Head Office, on Thursday, June 11, 2015 at 10:00 am prompt.

COCOA PROCESSING COMPANY LIMITED (CPC) TO HOLD ANNUAL GENERAL MEETING: Management of CPC has scheduled this year’s Annual

General Meeting (AGM) for 17th June, 2015. The meeting will take place at Fig 2: Top 5 most liquid equities with respect to volume traded the Accra International Centre, Accra, at exactly 10:00 am prompt. LIMITED (MLC) ANNOUNCES ANNUAL GENERAL

MEETING (AGM): MLC has scheduled Tuesday, 16th June, 2015 for its 23rd Annual General Meeting (AGM) to be held at the Ghana College of Physicians and Surgeons, Accra at 11:00 am prompt. The agenda of the business will include the following: receive and consider the reports of the Directors and the Auditors and accept the full year 2014 financial results, re- election of Directors and authorizing Directors to fix the remuneration of the Auditors.

Stock Ticker Year Opening Closing Price @ YTD Gain/Loss (%) Price(GH¢) 28/05/2015 (GH¢) African Champion Industries Ltd. ACI 0.02 0.02 0.00% AngloGold Ashanti Ltd. AGA 37.00 37.00 0.00% Aluworks Limited ALW 0.02 0.07 250.00% Ayrton Drug Manufacturing Ltd. AYRTN 0.18 0.18 0.00% Benso Oil Palm Plantation BOPP 4.10 5.00 21.95% Cal Bank Ltd CAL 1.01 1.08 6.93% Clydestone (Ghana) Ltd. CLYD 0.03 0.03 0.00% Ltd. CMLT 0.12 0.12 0.00% Cocoa Processing Co. Ltd. CPC 0.02 0.01 -50.00% Ecobank Ghana Ltd. EBG 7.60 9.02 18.68% Enterprise Group Limited EGL 1.75 1.80 2.86% Ecobank Transnational Inc. ETI 0.28 0.36 28.57% Ltd. FML 5.25 5.37 2.29% Ghana Commercial Bank Ltd. GCB 5.30 5.14 -3.02% Guinness Ghana Breweries Ltd. GGBL 3.20 3.20 0.00% Limited GOIL 1.05 1.22 16.19% Golden Star Resources Ltd. GSR 2.34 2.34 0.00% Ltd. GWEB 0.03 0.02 -33.33% HFC Bank (Ghana) Ltd. HFC 1.50 1.70 13.33% Mega Africa Capital Ltd MAC 4.50 5.50 22.22% Mechanical Lloyd Co. Ltd. MLC 0.28 0.18 -35.71% Ltd. PKL 0.06 0.05 -16.67% Ltd. PBC 0.12 0.12 0.00% PZ Cussons Ghana Ltd. PZ 0.30 0.24 -20.00% * Standard Chartered Bank (GH) Ltd. SCB 20.35 20.12 -1.13% SIC Insurance Company Ltd. SIC 0.37 0.20 -45.95% Ltd. SPL 0.02 0.03 50.00% Limited SOGEGH 1.00 0.95 -5.00% Sam Woode Ltd. SWL 0.04 0.04 0.00% Trust Bank Ltd. (The Gambia) TBL 0.24 0.24 0.00% Total Petroleum Ghana Ltd. TOTAL 6.10 5.92 -2.95% Transaction Solutions (Ghana) Ltd. TRANSOL 0.03 0.03 0.00% Tullow Oil Plc TLW 34.99 33.00 -5.69% Unilever Ghana Ltd. UNIL 10.70 7.50 -29.91% UT Bank UTB 0.25 0.18 -28.00% AngloGold Ashanti Depository Shares AADS 0.52 0.52 0.00% Standard Chartered Bank Preference shares SCB PREF 0.58 0.69 18.97% NewGold Exchange Traded Fund GLD 35.80 35.80 0.00% Samba Foods Ltd SAMBA 0.73 0.73 0.00%

Table 5: Performance of listed equities from year open

CURRENCY MARKET CEDI REMAINS UNDER PRESSURE

EXCHANGE RATES BUYING SELLING YTD Trading on the currency market failed to favour Ghana’s local CHANGE currency as one of its major trading partners, the Dollar, forestalled USDGHS 3.9584 3.9624 23.76%▼ the Cedi from further trimming its loss on the interbank market.

GBPGHS 6.0635 6.0708 21.85%▼ The Cedi lost 0.59% of its composite value, despite the gains it recorded versus the Euro and the Pound. Thus, the Cedi continue to EURGHS 4.3110 4.3156 10.72%▼ linger in red in terms of its yield since the year begun cumulating to 19.33% from previous 18.63%.

Table 6: Inter-bank indicative rates The continuous fall in value of the Cedi is as a product of macroeconomic instability highlighted by high fiscal and current ▲ year-to-date appreciation ▼ year-to-date depreciation account deficits.

Cedi succumbs to Dollar

The Dollar remained buoyant on the currency markets last week as it rose by 1.40% against the Cedi, indicating a rise in confidence in the value of the American currency.

Government sources have hinted that, the central bank will from 2016 halt lending to the Government of Ghana. The move is believed to be part of measures by the International Monetary Fund (IMF), to discourage the Government’s appetite for borrowing.

However, the Institute of Fiscal Studies (IFS) has raised concern that

the move may affect the economy i.e. lead to crowding out the Fig 3: YTD performance of Pound, Dollar & Euro versus the Cedi private sector.

The Dollar’s annual yield appreciated to 23.76% on Thursday. Pound loses on GDP data

The Pound struggled on the international market with downside Euro versus Cedi pressures as investor disappointment over uninspiring growth activity negatively impacted market sentiment. Investors remained hesitant to buy into the single currency as uncertainties over Greece remain, weighing on the value of the The second release of UK GDP showed growth levels remaining Euro on the international market. unchanged at 0.3% in the first quarter, below the expected rate of 0.4%. UK’s Government deficit levels are to some extent been Likewise, the Euro lost to the Cedi on the local market as it traded noted as the cause behind the low growth for the British economy. between GH¢4.3110 and GH¢4.3156 compared to its previous range of GH¢4.3291 and GH¢4.3334. This represented a fall in Consequently, currency traders on the local scene adjusted their its year-to-date return to 10.72%. buying and selling rates to reflect this trend. The Pound lost marginally to the Cedi during the week to see its annual yield

decline to 21.85% from 21.91% the week earlier.

Alice Osei Okrah (Head) Isaac Kwasi Mensah (Analyst) Email: [email protected] Email: [email protected] Email: [email protected]

NB: The data in this report is Thursday on Thursday (w-o-w)