Business News of Fri, 17 Feb 20170
GSE: ETI positioned for strong earnings growth in 2017
On the Ghana Stock Exchange (GSE,) the African Export-Import Bank [Afreximbank] and Ecobank Transnational Incorporated [ETI], parent company of the Ecobank Group have signed a memorandum of understanding [MOU] to promote joint corporate objectives through the financing of private sector projects and trade finance transactions, focusing particularly on transactions involving trade and investment in Afreximbank member countries where Ecobank also has a presence.
The cooperation between the two institutions aims at supporting efforts at promoting intra-African trade, facilitating industrial development and export development, and strengthening African trade finance leadership, with the ultimate goal of transforming the African continent.
Under the agreement, Afreximbank and Ecobank will design joint innovative and tailor-made financial instruments and solutions to support private sector corporations and select strategic public sector institutions, as well as small and medium enterprises [SMEs].
This will enable them to participate effectively in the production of value added goods and services in national, regional and continental value chains.
The initiatives envisaged include the creation of a US$500 million programme dedicated to financing trade among Afreximbank member countries where Ecobank conducts banking business.
The two institutions will also explore other cooperation in financing trade operations in the form of exports and imports among African countries where Ecobank is present.
Adequate access to trade financing remains one of the greatest obstacles to the continent’s economic development according to Dr. Benedict Oramah, President of Afreximbank. This partnership agreement between ETI and Afreximbank will not only improve the growth of the company’s future earnings but also expand the footprint of ETI / Ecobank and grow the brand name of the bank across the African continent.
GN Analysts expect ETI and EGH share performance this year to improve on various exchanges across Africa including the Accra bourse on the back of profitable business partnership agreements.
Trading activity on the bourse ended with 2 gainers [SCB and GCB] yesterday. SOGEGH topped the trading chart in terms of volume as 225,600 shares worth GHS 169,200.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 7.11% and 9.64% respectively.
Trading activity on the On the Ghana Alternative Market (GAX) ended yesterday with 1,500 shares of Intravenous Infusions Limited [IIL valued at GHS 135.00 changing hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi LOST marginally to all the major trading currencies yesterday.
The local currency exchanged at a mid-rate of GHS 4.3744 to the USD, GHS 5.4636 to the GBP and GHS 4.6634 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 4.61%.