GRi BEF News Ghana 04 –04
- 2000
GSE All-Share Index marks time
Accra (Greater Accra) 04 April 2000
Share prices of the 22 listed equities of the Accra bourse remained stable on Monday with the main market index, the All-Share Index marking time at 763.10 points.
Mr Seth Ayitey, a broker with CDH, said the prices quoted for most of the equities for the day were below their actual value because demand exceeded supply in most cases.
For example, 3,200 shares of Fan Milk Limited (FML) were offered at 972 cedis but 5,000 shares were demanded. All the 3,200 shares were bought.
Accra Brewery Limited (ABL) sold all 4,000 shares offered but investors bid for more than 20,000 shares.
Even though Mechanical Lloyd Company Limited (MLC) could not make any sales, demand for one million shares far exceeded 48,800 shares offered which could have pushed the price up from 150 cedis, but investors offered to pay 130 cedis for a share.
He, therefore, called for more education for brokers to arm them well enough to know when to push prices either higher or lower.
Mr Ayitey attributed the continuous heavy demand for MLC shares in the past three weeks to a strategic position by an investor to secure a firm stake in the company.
On the effect of Ashanti Goldfield's (AGC) recent monetary problems on its share prices, Mr Ayitey said Ghanaian investors do not respond to activities of companies, hence its stable price.
He also explained that there are hardly any sales in AGC shares because of the value investors place on gold making them hold on to their shares.
Explaining what contributed to the bearish sentiments of low volumes that characterised trading on Monday, Mr Ayitey said this is a characteristic of opening trading sessions in the week. During these periods, investors, management and brokers review the previous week's activities in order to adopt new strategies that would enable them to acquire new holdings or sell off at profitable price.
Total shares traded on Monday were higher than Friday's close of 7,700 but brokers said the more than the 15,400 registered by only six equities could have been sold.
Bids inched up slightly from 1,027,800 to 1,068,800 while offers declined from 1.2 million to 993,330 shares. Market capitalisation remained at 3,247.87 billion cedis.
The following are the last prices of listed equities in cedis:
ABL 500
AGC 18,700
ALW 2,486
BAT 460
CFAO 40
EIC 1,880
FML 972
GBL 1,450
GCB 905
GGL 976
HFC 770
MGL 200
MLC 150
MOGL 14,550
PAF 294
PZ 800
SCB 19,500
SPPC 150
SSB 2,000
UNIL 1,848
UTC-E 125
CMLT 421
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