Aluworks shares hit 400% YTD gains

The Ghana Stock Exchange floor
The Ghana Stock Exchange floor

Aluworks (ALW) added on a pesewa to hit a year-high of 10p per share to registering a Year-To-Date (YTD) appreciation of 400% (the highest on the bourse so far) on the Ghana Stock Exchange (GSE).

Gains in ALW shares is phenomenal, on the back of downward pressure on broader market returns this year resulting in losses in many stocks. The relatively low price of ALW shares heightens investor-attraction since the least absolute changes results in relatively higher percentage returns.

Cal Bank Limited (CAL,) Ecobank Transnational Incorporated (ETI) and Goil shares appreciated by a pesewa each at close of trade yesterday while Ghana Commercial Bank (GCB) and Guiness Ghana Breweries Limited (GGBL) lost a pesewa each. On the back of 4 gainers and 2 laggards, the key market indices inched up to settle the YTD returns on composite and financial index at -13.20% and -15.33% respectively.

Going forward to the end of this year, share prices are expected to remain driven by block trades as CAL shares persists in a winning streak this week. GN Analysts however anticipate that the broader market may end this year with YTD returns at 5-year lows.

On the Ghana Alternative Exchange, Hords, has returned 60% after a successful IPO this year. Currently priced at 8p per share, this equity leads in gains and liquidity on the GAX. Trading activity indicates more upside room for the share price to settle at 9p by year-close, to result in 80% YTD return.

The Initial Public Offer (IPO) by Intravenous Infusions Ltd (IIL) to raise GHS 12 million on the GAX, offering a share at 8p is certainly positive news for the market. This equity comes to the market with a long history of operation and experience in the West African Market. Established in 1974, IIL supplies 50-60% of IV fluids going to hospitals and pharmacies nation-wide. The prospects of this equity make it a good buy and certainly a stock to watch out for.

On the Currency Market, the Cedi lost marginally to the Euro & CFA but gained to the Dollar & Pound yesterday.

The local currency exchanged at GHS 3.7938/USD, GHS 5.7374/GBP and GHS 4.1833/EURO.

GN Market Analysts posit that, the Cedi is poised to exhibit some stability on the forex market in the short-term but the slide in the CEDI for the week under review could signal further decline in the weeks ahead of the Christmas session.

The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date depreciation of 14.42 percent.


Source: Ghana/ Research


Source: Political

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