BOPP tops all stocks on GSE

Benso Oil Palm Plantation (BOPP) has emerged as the best performing stock on the Ghana Stock Exchange (GSE) for the month of August.

Citi Business News desk analysis reveals it topped the list after it increased in value by about 24percent.

Its share price rose by 70 pesewas to close trading for August at 3 cedis, 60 pesewas.

Activities on the Ghana Stock Exchange for last month ended rather on a low note.

The bourse in general declined by about 4.4% while financial stocks declined by a little under 1 percent.

Out of 8 companies that recorded gains, 5 of them were financial stocks.

Heightened economic challenges had a toll on manufacturing, distribution, and food and beverage companies as they made up 9 out of the 14 companies that recorded declines.

Eight best performing stocks

After BOPP, Societe General Ghana, the second best performing stock, was not close to BOPP in terms of performance.

Societe General increased by 10percent having appreciated in share price by 9 pesewas.

It closed the month at 97 pesewas.

Another Bank Ecobank Transnational Incorporated (ETI) took 3rd place having increased by about 7 percent.

This is despite a marginal increase in share price of only 2 pesewas to close the month at 33 pesewas.

Cal Bank came 4th after increasing in value by about 4percent.

Its share price last month increased by 3 pesewas to close at 88 pesewas.

The other gainers were SIC and GOIL which both inched up by a pesewa. However SIC is placed 5th having increased by about 3percent.

Ecobank Ghana and Oil giant Tullow also increased in value by about 1 percent.

Stock analyst with Merban Stock Brokers, Nana Agyeman Gyamfi explains to Citi Business News why financial stocks are outperforming other stocks on the GSE “the demand in the financial stocks is usually high basically due to the fact that their results has been resilient this year. If you take an average of their returns for the half year, you will see that the financial stocks have done better than the market.”

It was not an exciting month for some 14 companies which recorded declines in share price.

Fourteen worst performing stocks

Cocoa Processing Companies (CPC) recorded the worst performance following its share price slashing by 50percent after shedding just a pesewa.

Its share price is the least valued on the GSE priced at just one pesewa per share.

Brewery Giant, Guinness Ghana Brewery followed after losing 1 cedi in August.

This translated to about 29percent loss.

Its share price was valued at 2 cedis 50 pesewas at the close of trading last Friday.

Producers of household consumables, PZ Cussons came 3rd in the worst performing stocks for last month.

Its share price declined by about 26percent, after shedding 14 pesewas to be valued 40pesewas.

Clydestone followed, declining by 25percent, after it shed just a pesewa.

Its share price was valued at 3 pesewas at the close trading last Friday.

The other decliners were Fanmilk losing 1 cedi 50 pesewas from 6 cedis 50 pesewas to a share price of 5 cedis.

This  led to a 23percent decline.

Produce Buying Company also lost by about 21percent, Aluworks by 20percent, Golden Star Resources about 15percent and UT bank by about 13percent.

Data from the Ghana Statistical Service indicates the manufacturing sector on the average increased their prices by about 40%.

Nana Agyeman Gyamfi says these stocks performed poorly because the companies were struggling.

“You will recount the earlier energy challenges and also the increase in utilities and fuel cost they are affecting most manufacturing companies because when it comes to distribution and other activities, it goes to hit their bottom line”, he said.

The rest of the decliners included GCB, Enterprise Group, Mechanical Lloyd, Total Petroleum and Unilever.

About 13 other companies however did not record any price changes.

They included African Champion, Anglogold Ashanti, Starwin products, Sam Woode and Camelot.

So what should investors expect going forward?

Nana Agyeman advises that “once the Cedi stabilises, and inflation is not recording huge jumps, manufacturing firms will be able to to plan for the rest of the year.”

“Investors should look at Ecobank, GCB, Stanchart,  Societe General Ghana and  Benso Oil Palm Plantation”, he said.

“Total Petroleum, Fanmilk have lost some grounds. I believe that long term investors will be looking at those stocks too”, he added.

By:  Kwaku Anim Boadu/citifmonline.com/Ghana