Wednesday's report GSE 948th Trading Session 22 April 1998

With nineteen of the market's 21 issues traded, 10 stocks moved upwards and 2 fell. The GSE All-Share Index appreciated another 28.26 points in its seemingly relentless upwards push.

Mobil Oil Co of Ghana was again among the leaders, up 1000 cedis to 26,500 cedis. This was in spite of the release of last year's trading results that showed profits down by 7% to just over 10b cedis. This will reflect the petrol rationing problems that arose in the middle of last year. Presumably investors are gambling these will not recur despite increased demand in the current power crisis. The dividend was cut from 1540 cedis to 1020 cedis per share, leaving dividend cover at a healthy 2.64, and the shares yielding 3.8%. Given the recent rise in market values, the P/E ratio of 10 is not out of line.

The most heavily traded stock by value was Standard Chartered Bank, which also held up its beid to be traded in smaller lots as the price rose by 1500 cedis to 19,000 cedis. A line of 111,100 shares passed through the market, valued at 2.1b cedis. The other banks ended unchanged, Ghana Commercial Bank at 2500 on turnover of 17,600 shares, and SSB Ltd at 3680 on turnover of 3800 shares.

Both the other financial stocks appreciated, Home Finance Co added 20 cedis to 660, and Enterprise Insurance Co jumped 200 cedis to 2000.

The brewers were mixed, Kumasi Brewery Ltd marked up the largest percentage gain of the day, up 245 cedis (almost 14%) to 2005 cedis as 600 shares changed hands. Guinness Ghana Ltd slipped 1 cedi to 1369 on a parcel of just 100 shares, and Accra Brewery Ltd was not traded at 910 cedis.

Fan Milk Ltd, the market's best performer in the year to date, added 50 cedis to 1700 cedis, while Pioneer Tobacco Company added 80 cedis to 850 cedis, again seemingly on domestic interest as 8,800 shares were traded.

The metal-bashers had a good day, Aluworks Ltd, until this session the market's poorest performer during the year, added 328 cedis (over 12%) to close at 3000 cedis. Metalloplastica Ghana Ltd added 10 cedis to 190 cedis, the first new trading high since May last year. Pioneer Aluminium Factory was the "other" stock that failed to trade on the day (with ABL).

Ashanti Goldfields Co added 250 cedis to 18,800 cedis on turnover of 560 shares, quite large volume for the issue.

The second faller was CFAO, which dropped 3 cedis to 74 cedis as 478,700 shares were offered into the market, but buyers were found for only 1800.

Boosted by bids for 19m shares in Standard Chartered Bank, aggregate bids exceeded offers by almost 20m shares to just over 2m. Large lines of stock were offered in Aluworks (538,900), CFAO, Ghana Commercial Bank (229,100) and Pioneer Tobacco Co (145,400).

Aggregate value traded exceeded 3bn cedis, the third time in the past four sessions that aggregate value has exceeded 1b cedis.

Unusually, the bond market was active for a second consecutive session, 30 units of Home Finance Co "Housbonds" A series were traded at USD101 (unchanged).