GSE halts trading on UT Bank’s shares

CDA Consult – The Ghana Stock Exchange (GSE) has put on hold trading in UT Bank shares following the liquidation and subsequent acquisition last Monday by GCB Bank Limited ascribed as the second largest bank in Ghana by net profit and total assets.

The Bank of Ghana on Monday announced the surprise revocation of the licenses of UT Bank, following its inability to turn around its negative capital adequacy position which has lingered on for some time now.

Trading however on the Ghana Stock Market edged upwards on the bourse as four equities advanced with no loser; in effect the benchmark GSE-Composite Index rose by 0.1 per cent to close at 2,273 points.

The GSE-Financial Stock Index also edged by 0.1 per cent to close at 2,100.8 points, Nordea Capital Investment Stock Market Expert analysis of trading activities obtained by CDA Consult in Accra, on Tuesday indicated.

Enterprise Group Limited (EGL) tagged as the oldest insurance company in Ghana, listed on GSE in 1991 as the first insurance company to be publicly listed in Ghana appreciated by 0.3 per cent on announcement of impending rights issue.

The Benso Oil Palm Plantation (BOPP) a Ghanaian agribusiness firm dealing in the Oil Palm Plantation went up by 0.2 per cent to close trading at GHc5.09 per shares, and Fan Milk Limited a leading manufacturer of ice cream and yoghurt, and a significant player in the fruit drinks market also hit 0.2 per cent to close the session at GHc16.13 per shares.

The Standard Chartered Bank Ghana a banking, and financial services company also climbed up by 0.2 per cent to close at GHc26.35 per share.

A total of 434,747 shares were traded and these were valued at GHc612,318.

The Nordea Income Growth Fund is priced at GHc0.3348 with a Year-to-date return of 21.79 per cent.

Meanwhile in a wrap-up of trading activities for the second week of August indicates that the bourse inches further north as inflation declines to four year low.

Bullish sentiments continued as a fresh wave of strong economic data last week saw investors return to bidding up equities. Consequently, the GSE-CI touched 2,271.3 points at the sound of the week’s closing bell, representing a 0.1 per cent gain on week-on-week basis.

Both Gainers and Losers even out although, price changes for the week tipped towards optimism, both gainers and losers were on an even keel, reflecting the demeanour of the market.

Major gains were recorded during the second week in the agribusiness, financial and consumer sectors, while PBC, Enterprise Group Ltd, HFC, CAL all saw some recovery in their market value.

Starwin-Dannex, UT Bank, Mechanical Lloyd, SIC and ETI were the main laggards for the week.

Bourse experience lower volumes both liquidity and turnover dipped by 37.8 per cent and 67.8 per cent respectively. A total volume of 2.6 million shares exchanged hands and this was valued at GHc2.9 million.

TOTAL recorded the highest turnover, accounting for 31.3 per cent of value traded for the period, SOGEGH followed closely with 16.2 per cent of market turnover.

Nordea Capital is an investment bank licensed by the Securities and Exchange Commission (SEC) offering a comprehensive range of services in asset management, research and strategy, corporate finance and private equity to institutional, corporate and private clients.

Nordea Capital is dedication to growing and preserving client assets and building trust, in partnership with financial professionals and institutions worldwide.

Nordea Capital develops investment products that are relevant to the market and that we believe are designed to produce consistent, competitive investment performance.

The GSE is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990.

Communication for Development and Advocacy Consult (CDA Consult) provides tailor made development communication tools necessary for operational transformation and translating dreams into achievable goals and equips clients with mechanism for public education on specific issues.

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