CDH signs agreement with Camelot
Mismatch of prices pulls shares traded down
Purchases of 1999 Mid-Crop season ends on Thursday
CDH signs agreement with Camelot
Accra (Greater Accra) 5 Aug ’99
CDH Securities Limited, on Wednesday signed an agreement with Camelot Ghana Limited, a local computer paper manufacturer, to fully underwrite 1,750,000 of its shares to be floated on the Ghana Stock Exchange (GSE).
The agreement, which is expected to raise 700 million cedis of equity capital for the company is the first of its kind in the country.
A statement in Accra by CDH Securities, a subsidiary of CDH Financial Holdings, said the offer represents 26.75 per cent of outstanding shares in Camelot.
The floatation opens on Monday, August nine, for 11 days.
The company, the 22nd listed equity on the GSE, will begin trading on August 30.
Participating brokers in the share offer include Cal Brokers, Merban Stock Brokers, SDC Brokerage Services, Sterling Securities and Strategic African Securities.
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Kumasi (Ashanti Region) 5 Aug. ’99
The Value Added Tax (VAT) Service Secretariat in Kumasi is to mount collection points at all entry points to timber and wood selling markets in the metropolis to collect VAT.
These are the Anloga, Ahwiaa, Akwatialine and Aboabo timber markets.
Mr Kwasi Tweneboah-Koduah, VAT Director in charge of the Northern sector, announced this during an interaction with timber sellers at Anloga to educate them on the collection of 10 per cent VAT on timber products they sell.
He explained that most of the buyers have failed to pay tax, because the dealers are not clear in their minds on the operations of VAT.
This is because, he added, after they have paid VAT on wood products they purchase from the sawmills, the dealers are expected to collect the VAT they paid from the buyers.
The dealers appealed to the VAT Secretariat to begin the exercise simultaneously at all the timber markets in the metropolis, otherwise some of their customers would divert their business away from Anloga.
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Mismatch of prices pulls shares traded down
Accra (Greater Accra) 5 Aug. ’99
Total shares traded on the Accra bourse on Wednesday slumped to the lowest this year and brokers attributed it to a mismatch in prices quoted by suppliers and buyers.
Traders thus sold only 5,600 shares out of 3.4 million posted on the bourse compared to 222,700 shares traded on Monday.
A broker with the CDH Financial Holdings Limited, Mr Fifi Fiavi Kwetey, said, for example, the lowest price offer for 1,079,500 shares of Ghana Commercial Bank (GCB) was quoted at 950 cedis while the highest bid for 20,000 shares was 750 cedis.
As a result, GCB among 10 equities, did not record any sales, and despite four price appreciations registered on the market, the Ghana Stock Exchange (GSE) All-Share Index dropped by 3.06 points to close mid-week trading at 793.43 points.
The index gained nearly nine points during trading on Monday.
Shares on demand also dropped substantially to 62,900 from 2.3 million shares due to low investor interest in the market.
Mr Kwetey explained that the Ghanaian public is not used to investment on the capital market. They prefer short-term investments such as purchasing of six months and 90-day treasury bills.
"This type of culture is hurting the market. Perhaps we need to do more pre-education campaign on what investors should expect from investing on the capital market to forestall the situation where there is no free flow of liquidity."
In the face of these and other forces at play, market capitalisation also edged down slightly at 3,288.47 billion cedis from the 3,293.30 billion cedis on Monday.
In the broader market, six equities saw price changes. Four equities appreciated while two declined.
Accra Brewery Limited (ABL) lost 150 cedis to end trading at 450 cedis while Supper Paper Products Company (SPPC) was the other loser of six cedis, closing at 189 cedis.
Aluworks (ALW) made 35 cedis to finish at 2,650 cedis and Guinness Ghana Limited (GGL) gained 10 cedis to close at 990 cedis.
The other gainers were British-American Tobacco (BAT) which gained five cedis to 410 cedis and Standard Chartered Bank (SCB), which edged up 50 cedis to finish at 20,550 cedis
The following are the last prices of listed equities in cedis :
ABL 450 - 150
AGC 18,700
ALW 2,650 +35
BAT 410 +5
CFAO 45
EIC 1,990
FML 1,250
GBL 984
GGL 990 +10
HFC 749
MGL 220MLC 190
MOGL 16,000
PAF 290
PZ 850
SCB 20,550 +50
SPPC 189 -6
SSB 1,980
UNIL 1,890
UTC-E 125
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Purchases of 1999 Mid-Crop season ends on Thursday
Accra (Greater Accra) 5 Aug. ’99
Ghana Cocoa Board (COCOBOD) on Wednesday announced that purchases of the 1999 mid-crop cocoa season would cease at the close of business on Thursday, August five.
A statement issued in Accra said in order to assist the Produce Buying Company (PBC) Limited and other licensed buying companies to obtain the final returns from their stations up country, the Board has decided that returns on declared purchases would be accepted up to 1600 hours on August 12.
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