Indigenous bank, HFC bank has emerged as the overall best performing stock on the Ghana Stock Exchange (GSE) in the year 2014.
This is based on its capital gains of a little above 56%, the highest recorded in the year.
HFC gained 54 pesewas on its share price of 96 pesewas it started the year 2014 with and closed the year at 1 cedi 50 pesewas.The Ghana Stock Exchange’s performance measured by the index increased by 5.4% compared to a relatively outstanding performance of about 79% recorded in the previous year 2013.
14 companies recorded gains.
7 of those stocks are financial stocks, 3 in manufacturing, and 3 in the oil industry.
However 17 companies recorded capital losses.
4 are financial stocks, while 9 are in manufacturing.
Pan African Bank, Ecobank Transnational Incorporated (ETI) placed was the second best performing stock on the market with a 47% increase in gains.
ETI’s share price increased by 9 pesewas to close the year 28 at pesewas.
The newest entrant on the bourse, Mega Africa capital, seem to have made an impressive start in its first year, taking the number 3 slot with a 45% capital gain.
It increased by 1 cedi 40 pesewas to close at 4 cedis 50 pesewas.
British bank, Standard Chartered bank came 4th with a 36% capital gain.
Its share price increased by 5 cedis, 41 pesewas, closing the year at 20 cedis 35 pesewas.
Ecobank Ghana placed 5th having increased by about 36%.
With a 1 cedi 99 pesewa gain, Ecobank Ghana closed the year at 7 cedis 60 pesewas.
Sam Woode and Societe General Ghana followed both with a 33% gain, Benso Oil Palm plantation with about 28%, Total Petroleum with a 21% gain and Goil increasing in value by 18%.
The rest are GCB, Aryton drugs, Cal bank and Tullow Oil.
But what then accounted for HFC bank making the highest returns for investors?.
Investment analyst Nana Agyeman Gyamfi of UMB stock brokers explained that ‘Last year when Republic bank showed interest in acquiring the bank, some people were not happy about it, during and prior to the period they were making the announcement.
So we saw a rise in prices going up to the level of the tender offer price that Republic were offering.
Another thing too is that, its results weren’t bad last year.
They recorded some impressive profits’.
On the other hand, African Champion ltd led the band wagon of losers with about 67% drop in share price.
It declined by 4 pesewas closing the year at 2 pesewas.
PZ Cussons was second worst performing stock with a 62% decline in share price.
It dropped by 49pesewas to close the year at 30pesewas from 79 pesewas it started the year with.
Aluminium Company, Aluworks was the 3rd worst performing stock with a 60% decline in its share price having lost 3 pesewa.
It closed the year at 2 pesewas.
Recently acquired firm, Starwin placed 4th following its share price dropping by 50%.
It lost 2 pesewas off 4 pesewas it started the year with.
Brewery giant, Guinness was the 5th worst performing stock, with its share price declining by about 48%.
It shared 3cedis to close at 3 cedis 20 pesewas.
The rest of the decliners are UT Bank with a 44% decline, Unilever slumming by about 42%, Trust bank Gambia declining by about 31% and PBC which declined by about 29%.
The others are, Mechanical Lloyd, Golden web, Camelot, Clydestone, Fanmilk, golden star resources, Enterprises group and SIC.
Four companies however maintained their share prices.
They were Anglogold Ashanti, Cocoa Processing Company, Pioneer Kitchenware, and Transaction solutions Ghana.
Source: Citi Online