Scary signals from stock exchange
Loading ...Some investors on the Ghana Stock Exchange (GSE) are panicking following the unimpressive results released by some companies on the floor of the exchange.
Three listed companies, Produce Buying Company (PBC), The Trust Bank of Gambia and CFAO Motors, set the tone last Wednesday when they released unimpressive results for the last quarter of the year.
Details of these results have led to panic amongst some investors who fear that the trend will be the same for companies yet to release their results.
While PBC’s results were quite modest because of growth in its bottom-line, those of CFAO and the Trust Bank Gambia were very disappointing.
CFAO and Trust Bank Gambia saw little appreciation in Pre-tax and After-tax profits.
Stock analysts were not shocked about the results, saying these firms could not achieve much gain in the last quarter of last year.
They believe that the poor showing of the Trust Bank Gambia could be attributed to the foreign currency investments the bank undertook in the Gambia, adding that the competition in the banking industry is also a factor that could have accounted for disappointment.
Commenting on the performance, Edem Dewotor, a Stock Analyst said the migration of banks such as Ecobank to Gambia was one of the major factors that affected Trust Bank’s performance.
Shares of PBC, CFAO, Trust Bank of Gambia hardly made any gains on the Accra Bourse last year as investors shifted their attention to the more exciting equities such as Ecobank, Unilever, Cal Bank, GCB and SG SSB.
Meanwhile, the GSE is expected to witness increased investor participation as the exchange is expected to see an increase in listing activities this year.
Unique Trust Financial Services, Aviance Ghana Limited, WESTEL Ghana Limited and Ghana Telecom, depending on the outcome of the privatization exercises, will float some shares on the Accra Bourse this year.
Last 10 posts in Finance
- Accra bourse index in big leap on Ecobank Ghana gain
- Accra bourse index continues surge on back of Ecobank
- Inflation causes panic
- Accra bourse opens week on positive note
- GSE All-Share index continues rally
- GSE All-Share index leaps up
- Gov’t pushes for interest rates cut
- Positive outlook for horizon fund
- AGI launches tax guide
- GSE automation attracts investors
Popularity: 2% [?]
Post a Comment