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[2008-08-05] Coys Post Impressive Returns
Listed companies on the Ghana Stock Exchange (GSE), especially the financial institutions, continue to release impressive first half year results.
The firms that have so far released their unaudited financial statements have recorded impressive earnings in the first half of the year-ending June 2008.
This demonstrates the relative economic stability in relation to inflation, foreign exchange or currency rate among others that the country is enjoying despite pressures from the external front.
The Ghana Stock Exchange (GSE) maintained its lead in the first half of 2008 among African stock markets with investors gaining more than 50 percent in returns.
The GSE all-share index, the benchmark measure of performance of the bourse, moved up from 6,718.88 points at the beginning of January to 10,346.30 in June, representing a half year gain of 56.77 percent.
The gain in the index at the half-year stage is above the prevailing annual interest equivalent on 91-day treasury bills of 16.3 percent at the end of June 2008. It was also above the June 2008 twelve-month inflation rate of 18.41 percent.
Market capitalization rose from GH˘12,513.05 million in January to GH˘15,587.76 million at the close of June, an increase of GH˘3,074.71 million due mainly to increases in share prices of most of the listed companies.
Over 10 companies including Ecobank Ghana, Ghana Commercial Bank, SIC Insurance, Unilever, EIC, Benso Oil Palm Plantation (BOPP) and Fanmilk were active on the market, contributing significantly to the growth.
While Ghana Commercial Bank (GCB) posted GH˘11.427 million as compared to GH˘5.153 recorded in 2007 as net operating profit, Fanmilk recorded GH˘3.615 million as against GH˘3.242 in 2007.
GCB earned GH˘11.595 million and GH˘6.464 as profit before and after tax respectively. Its total assets also reached GH˘1.187 billion compared to GH˘1.153 billion, meaning shareholders fund had increased steadily.
Ecobank Transnational Incorporated, which has begun a vigorous expansion plan, also realized significant gains with its shareholders equity reaching GH˘57.103 million as compared to GH˘35.250 million in 2007.
Its total assets almost doubled from GH˘7.422 billion as compared to GH˘4.216 billion in 2007.
BOPP, whose share price reached GH˘1.30 last Thursday, also recorded GH˘3.503 million as pre-tax and profit after tax as against GH˘1.395 realized last year.
Its net assets increased significantly from GH˘17.35 million in 2007 to GH˘19.684 million.
At the same time, Produce Buying Company (PBC), which has faced difficult times in the last two years, earned GH˘13.691 in revenue as compared to GH˘7.869 last year.
It also posted a gross profit of GH˘3.971 million as compared to GH˘1.916 recorded in 2007.
Source: Copyright © 2006 by Ghana Daily Guide
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