17 January 2014

Ghana: Tullow Performs Badly On Ghana Stock Exchange

Photo: Tullow Oil/Facebook
Tullow's first onshore exploration well in Kenya, Ngamia-1.

Ghana Stock Exchange (GSE) has named Tullow Oil Plc, an independent oil exploration firm in Africa as one of the worst performed equities on the local bourse in terms of returns to investors last year.

The oil firm, which produces oil and gas in commercial quantities on Ghana's Jubilee field, returned 08.07 percent to persons who invested in the local stock from January to December, 2013. This was contained in the GSE's 2013 report on the performance of the exchange released in Accra.

Other companies which also performed badly as announced by the Managing Director of the GSE, Kofi Yamoah included the Trust Bank Ltd of The Gambia, African Champions Ltd, and Transactions Ghana Limited.

While PZ Cussons, Enterprise Group Ltd, and CAL Bank emerged as the best performing equities on the GSE in terms of returns to investors last year, he said.

These companies returned 339 per cent, 291.67 percent, and 155.26 percent respectively to persons who invested in the stock during the period.

These securities performed above the GSE's Composite Index of 78 percent which was driven mainly by the primary listings, according to the MD.

Shares of HFC appear to have led the stock market in terms of number of stocks traded, while Total had the highest in terms of value.

Mr. Yamoah was quick to note that 313 million shares exchanged hands for last year. The Ghana Stock Exchange is now worth a little over GH¢ 61 billion, while the number of companies listed is put at 34. Total value traded was 465 million Ghana Cedis.

He told the journalists that the local bourse was expecting six listings on both its main market and the expected SME market popularly called GAX this year.

Three of the listings are expected on the main market. These include agricultural development bank (adb), Ghana leading agric and development financier, and Vanguard Assurance. Whilst Intravenous Infusions, Process Food and Spices and Meridian Marshalls are among the potential SME listings.

The managers of the capital market are optimistic that the market which was ranked the best performing market in Africa in dollar terms in 2013 will continue its trend this year.

This is on the back of expected active participation of the 2nd Tier Private Pension Fund Managers.

Mr. Yamoah and his team therefore urged the remaining Ghanaian companies which are not on the stock to do so because they have a lot to gain from it.

More on This
Kenya Moves Closer to Getting Commercial Oil

Kenya has moved closer to striking commercially-viable oil after Tullow Oil made new discoveries in the northern part of … see more »

Copyright © 2014 Ghanaian Chronicle. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.