GRi Business News 09-02-99

 Accra (Greater Accra), 9 Feb.

Trading on the Ghana Stock Exchange (GSE) took a downward turn yesterday following losses in three equities

with no gains.

This resulted from the intense profit taking by investors, especially those of Aluworks (ALW), Pioneer

Tobacco Company (PTC) and SSB Bank.

This put pressure on the GSE All-Share Index, causing it to fall 4.27 points to close at 898.90 points, down

from the 903.17 points registered on Friday.

Total volume of shares sold finished low at 48,570. It last closed at 199,040 shares. Offers closed at 3.3

million shares while bids ended at 341,570.

Market capitalisation closed at 3,416 billion cedis. This is lower than the 3,423 billion cedis posted on

Friday.

In the broader market, three equities made significant losses to open the week down, from their previous

closing prices. There were no gains.

ALW lost 100 cedis to finish at 2,650 cedis while SSB Bank was down 55 cedis to end 2,220 cedis.

The other loser, PZ, closed at 850 cedis down by 50 cedis.

The following are the last prices of listed equities:

ABL 800

AGC 19,000

ALW 2,650 -100

CFAO 55

EIC 2,000

FML 1,600

GBL 1,700

GCB 1,100

GGL 1,200

HFC 750

MGL 225

MLC 250

MOGL 20,000

PAF 400

PTC 400

PZ 850 -50

SCB 25,000

SPPC 250

SSB 2,220 -55

UNIL 1,650

UTC-E 125

Accra (Greater Accra), 9 Feb.

Vice-President John Atta Mills today launched a seven-year Trade and Investment Gateway (GHATIG) project and called for all hands to be on deck to help achieve its target of boosting the country's socio-economic development.

Prof. Mills who chairs the oversight committee on GHATIG, said the project will provide more jobs as well as enhance active and direct participation by the private sector in activities which were hitherto performed by either government or government agencies.

The project, which is the first phase of a broader gateway programme, seeks to introduce a comprehensive set of reforms to attract a critical mass of export-oriented investment to kick-start export-led growth as well as facilitate trade.

It is being financed with 56.5 million dollars from the Government, World Bank and local private investors. The World Bank is providing 50 million dollars, an agreement for which was signed by Mr Kwame Peprah, Minister of Finance and Mr Peter Harolds, World Bank Country director, shortly after the launch.

Under the project, operations of some six front-line institutions and agencies which deal directly with investors would be improved and provided with the necessary infrastructural services.

They are the Customs, Excise and Preventive Service (CEPS), Ghana Immigration Service (GIS), Ghana Civil Aviation Authority (GCAA), Ghana Ports and Harbours Authority (GPHA), Ghana Investment Promotion Centre (GIPC), Ghana Free Zones Board (GFZB) and the Environmental Protection Agency (EPA).

For instance, under the GPHA component of the project, the Authority will be converted into a "landlord" Port Authority and the private sector will be invited to participate directly in port operations such as stevedoring and cargo handling, container terminals development and maintenance, and dockyards, among other things.

Under the Civil Aviation component, the project will involve the institutional restructuring of the GCAA, charging it with safety regulations, pilot, carrier and facility licensing, air navigation and air traffic control.Prof Mills said commercial airport operations and development would be placed under the control of an independent airport authority.

Other activities such as handling of passengers from aircraft to the terminal buildings and vice versa, the management of duty free shops, car parks, cargo village development and maintenance will also provide another attractive opportunity for direct private sector participation in the operations and activities at the airport.

The gateway project therefore presents a serious but rewarding challenge to the private sector, Professor Mills said, and expressed the hope that the sector would make use of it.

He said if well implemented, the project which was born out of the Vision 2020 policy programme, would make Ghana the prime trade and investment destination within the West African sub-region.

Prof Mills conceded that all will not be rosy in efforts towards the achievement of the stated goals and reaffirmed government's commitment to and support for the project.

"We do not pretend to be unaware of the enormity of the challenge that the programme presents, but we are determined to persevere until the envisaged goals have been accomplished."

He said the project does not seek to vie with any efforts or similar initiatives being pursued by neighbouring countries, but rather complement them with the necessary support and services, especially to landlocked sister countries.

Mr Dan Abodakpi, Deputy Minister of Trade and Industry, said it is a product of sustained participatory efforts to boost the economy.

He said the project has ambitious targets which, he hoped, would be achieved within the stipulated period.

He said as part of measures to ensure committed implementation, all key players would sign performance contracts towards success.

"Failure of this project will mean a luxury which we cannot afford," Mr Abodakpi said and reiterated Vice-President Mills call for serious hands on deck.

Mr Abodakpi said some 587 training programmes including workshops and seminars would be held between now and the year 2002.

Mr Harolds said the World Bank has enormous confidence in the project and lauded the initiative of the project team, led by Mr Abodakpi.

''In my 18 years with the World Bank, I have never seen a project so well directed," he said adding that he was particularly impressed because it aims at increasing employment and development through "huge changes" in the sectors of the economy.

"In the next five to six years, the gateway sites of the country will be enormously exciting."

Mr Harolds said Ghana has great chances of becoming a base for development, trade and industry in West Africa.

He urged the implementing team and the front-line institutions to remain steadfast to the challenges ahead.

Mr Peprah, who chaired the ceremony, called on the various implementing agencies to complement each other's effort.

Accra (Greater Accra), 9 Feb.

The Ghana Stock Exchange has commended Home Finance Company (HFC) Limited for its good performance last year when it topped the 21 listed equities on the market.

A letter by the Managing Director of GSE, Mr Yeboa Amoa, to the Managing director of HFC Mrs Stephanie Baeta Ansah said market appreciation of HFCshares for 1998 was 219.1 per cent.

"This was the highest among listed equities on the exchange for the same period." HFC's shares have risen from the initial price offer of 100 cedis to 750 cedis last year. It was 235 cedis at the end of 1997.

The letter said apart from being the only corporate debt instrument on the market, HFC Housebonds also did well last year.

"The volume of units traded in the HFC series A, B and C Bonds in 1998 totalled 51,945 valued at 5.297 million dollars."

The letter said these achievements are a measure of the tremendous investor confidence which the company enjoys, undoubtedly due to its efficient management.

GSE was adjudged the best performing stock market on the continent, the letter said, adding that ''undoubtedly, your company's performance was one of the strong underlying reasons for this great achievement.''

Standard Chartered Bank was the second best listed equity gaining 196.3 per cent on its value. It was followed by PZ (176.9 per cent), Enterprise Insurance Company Limited (151.6 per cent), Fan Milk Limited (125.4 per cent ), Pioneer Aluminium Factory Limited (123.4 per cent), Mobil Oil Ghana Limited (106.6 per cent), Ghana Commercial Bank (62.5 per cent), Super paper Products Company Limited (58.9 per cent) and Unilever Ghana Limited (45.5 per cent.)