WEEKLY MARKET WATCH SIC-FSL INVESTMENT RESEARCH| MARKET REVIEWS|GHANA 5th December, 2013 SIC FINANCIAL SERVICES LIMITED|ADVISORY|FUND MANAGEMENT|STOCK BROKERAGE|INVESTMENT RESEARCH STOCK MARKET INVESTORS REMAIN CAUTIOUS ON THE GHANA STOCK EXCHANGE INDICATORS WEEK OPEN WEEK END CHANGE Market participants brought some level of passion on the Ghana Stock Exchange last week, regardless of the Market Capitalization (GH¢ 'million) 27,973.20 27,857.40 -0.41% numerical strength of losers over gainers. Appreciations in Market Capitalization (US$' million) 834,492.00 1,433,447.00 71.77% Ghana Commercial Bank (GCB) and Ghana Oil Company Limited (GOIL) were more than sufficient to reverse the Volume traded (shares) 1,008,926.73 2,819,506.79 179.46% previous sluggish performance by listed companies. Value Traded (GH¢) 484,641.53 1,348,207.71 178.19% Nonetheless, some anxious shareholders succumbed to Value Traded (US$) 27,973.20 27,857.40 -0.41% market demands as they reluctantly reduced offers to Table 1: Market Summary match with the available bids on the market. This accounted for the greater number of depreciations INDEX ANALYSIS witnessed among stocks like CAL Bank, PZ Cussons, Standard Chartered Bank, and Total Petroleum Ghana limited. INDICATORS Closing Week YTD Level Change CHANGE In effect the GSE Composite Index and the SIC-FSL Top 15 Indices went up by 0.20% and 0.23% each to settle GSE Composite Index 2,129.69 0.20% 77.52% at annual yields of 77.52% and 67.54% respectively. Although the Financial Stocks Index rose marginally, it SIC-FSL Top 15 Index 3,403.89 0.23% 67.54% maintained it year-to-date rate of 70.63%. GSE Financial Stocks Index 1,774.36 0.00% 70.63% Table 2: Key Stock Market Indices Total market capitalization appreciated by 0.04% to GH¢58.26 billion over the period due to gains in GCB and GOIL. LIQUIDITY 90.00% 80.00% Increased activity last week, accounted for the improvement in 70.00% volume and value traded. CAL Bank contributed 35.86% of total 60.00% volume traded on the Bourse, to close as the best performed 50.00% stock traded, whereas Ghana Commercial Bank made a little over GH¢688,956 to emerge the most valuable stock within the 40.00% period. 30.00% 20.00% In the end, a total of 1.43 million shares exchanged hands in the 10.00% period under review. This represented nearly 72% improvement 0.00% over the 834,492 shares that traded during the previous week. 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 13 - - - - - - - - - - - - - - - - - - - Total value traded also went up by 179% within the week. -10.00% - Jul Jul Jan Jan Jun Jun - - Oct Oct Feb Apr Feb Sep Sep Aug Nov Nov - - - - Mar Mar - - - - - - - May May - - - - - - - 2 9 5 4 15 31 6 18 10 26 28 21 17 20 19 13 29 12 28 22 GSE YTD Change GSE-FSI YTD SIC-FSL 15 YTD Change Fig 1: Year-to-date returns MARKET MOVERS STOCK Wk Open Wk End Change % TICKER change GOIL records the biggest gains over the week GCB 4.77 4.80 0.03 0.63% GOIL 0.78 0.89 0.11 14.10% The Oil marketing stock; GOIL, ended the week as the top gainer, advancing by 14.10% to close last Thursday’s session Table 3: Gainers for the week at GH¢0.89 per share. Investors took advantage of the company’s recent bonus share offer to further strengthen their positions in the Oil Company. GOIL’s bonus share issue reflected on the market last week, as STOCK Wk Open Wk End Change % beneficiaries were credited in the ratio of 0.2 new shares for TICKER change every one existing share held. This dilution, gave the company CAL 0.99 0.98 -0.01 -1.01% a new value of GH¢0.78 per share on the market. However, investors sharply pushed the stock to GH¢0.89 per share, PZC 0.82 0.80 -0.02 -2.44% which was just GH¢0.04 below its price before the bonus share offer. SCB 14.98 14.96 -0.02 -0.13% The company, as a result increased its issued shares to 252.22 TOTAL 5.04 5.02 -0.02 -0.40% million from the previous 210.19 million shares. Table 4: Laggards for the week PZC tops losers’ list PZ Cussons Limited (PZC) ended last week’s trading as the worst stock, following a 2.44% depreciation in the company’s market value. SIC, 15.47% At a price of GH¢0.80 per share, the consumer good dealer was trading 71% above its book value (GH¢0.23 per share) CAL, 35.86% and at a trailing P/E of 21x. ETI, 10.05% GCB, 10.02% FML, 4.46% Others, 24.15% CORPORATE NEWS Fig 2: Top 5 most liquid equities with respect to volume traded Ecobank secures a loan agreement with PROPARCO: The Pan African Bank, Ecobank Transnational Incorporated (ETI) has signed a ten- year loan agreement worth $50 million with the French Agency, PROPARCO, to strengthen its long-term resources and will support the development of its local banking network. PROPARCO is a French development institution jointly owned by the Agence Française de Développement (AFD) and private shareholders from developed and developing nations. Their aim is to promote private investment in developing countries to reach the Millennium Development Goals (MDGs). Stock Ticker Year Opening Closing Price @ YTD Gain/Loss (%) Price(GH¢) 5/12/2013 (GH¢) African Champion Industries Ltd. ACI 0.07 0.06 -14.29% AngloGold Ashanti Ltd. AGA 37.00 37.00 0.00% Aluworks Limited ALW 0.05 0.05 0.00% Ayrton Drug Manufacturing Ltd. AYRTN 0.18 0.18 0.00% Benso Oil Palm Plantation BOPP 1.40 3.20 128.57% Cal Bank Ltd CAL 0.38 0.98 157.89% Clydestone (Ghana) Ltd. CLYD 0.04 0.04 0.00% Camelot Ghana Ltd. CMLT 0.14 0.16 14.29% Cocoa Processing Co. Ltd. CPC 0.02 0.02 0.00% Ecobank Ghana Ltd. EBG 3.00 5.60 86.67% Enterprise Group Limited EGL 0.48 1.90 295.83% Ecobank Transnational Inc. ETI 0.12 0.18 50.00% Fan Milk Ltd. FML 3.55 6.60 85.92% Ghana Commercial Bank Ltd. GCB 2.10 4.80 128.57% Guinness Ghana Breweries Ltd. GGBL 2.62 6.10 132.82% Ghana Oil Company Limited GOIL 0.62 0.89 50.00% Golden Star Resources Ltd. GSR 2.75 2.75 0.00% Golden Web Ltd. GWEB 0.04 0.04 0.00% HFC Bank (Ghana) Ltd. HFC 0.45 0.96 113.33% Mechanical Lloyd Co. Ltd. MLC 0.15 0.38 153.33% Pioneer Kitchenware Ltd. PKL 0.06 0.06 0.00% Produce Buying Company Ltd. PBC 0.18 0.17 -5.56% PZ Cussons Ghana Ltd. PZ 0.18 0.80 344.44% Standard Chartered Bank (GH) Ltd.* SCB 11.50 14.96 30.09% SIC Insurance Company Ltd. SIC 0.34 0.39 14.71% Starwin Products Ltd. SPL 0.05 0.04 -20.00% Societe Generale Ghana Limited SOGEGH 0.48 0.75 56.25% Sam Woode Ltd. SWL 0.02 0.03 50.00% Trust Bank Ltd. (The Gambia) TBL 0.40 0.35 -12.50% Total Petroleum Ghana Ltd. TOTAL 23.49 5.02 -78.63% Transaction Solutions (Ghana) Ltd. TRANSOL 0.04 0.03 -25.00% Tullow Oil Plc TLW 38.05 32.00 -15.90% Unilever Ghana Ltd. UNIL 8.52 18.29 114.67% UT Bank UTB 0.38 0.44 15.79% AngloGold Ashanti Depository Shares AADS 0.52 0.52 0.00% Standard Chartered Bank Preference shares SCB PREF 0.52 0.52 0.00% NewGold Exchange Traded Fund GLD 32.18 26.13 -18.80% CURRENCY MARKET GHANA CEDI WEAKENS FURTHER The local currency fell for the seventh consecutive time last EXCHANGE RATES BUYING SELLING YTD week, as an attempt to recover from the recent tepid CHANGE performance proved futile again. This, many analyst have attributed to the approaching festive season as traders USDGHS 2.0900 2.0925 10.97%▼ increased demand for foreign currencies to import goods for the yuletide celebration. GBPGHS 3.4176 3.4219 12.46%▼ As a result, the Ghanaian Cedi shrunk by 0.50% against the EURGHS 2.8345 2.8369 11.87%▼ Pound, the Dollar and the Euro as its year-to-date loss on the interbank market extended to 11.70% from 11.14% a fortnight ago. Table 6: Inter-bank indicative rates ▲ year-to-date appreciation 15.00% ▼ year-to-date depreciation 10.00% Pound soars on the local currency market 5.00% The Pound failed to impress investors on the international front following the release of a lower than expected growth in the country’s Purchasing Manager Index (PMI). The PMI for the 0.00% month of November fell short of the 62.5 recorded in October 2 17 1 18 5 21 9 24 10 28 12 27 15 30 15 30 16 2 18 4 19 4 as it settled at 60.0, waning investors confidence in the currency on the global market. -5.00% Jan Feb Mar Apr May Jun Jul Aug Sept Oct NovDec However, investors on the Ghanaian market appeared -10.00% unperturbed as they held tight to the British Pound with the view EURGHS USDGHS GBPGHS that the situation will change after the Bank of England (BoE) announces its monetary policy decision.