INVESTMENT IN GHANA 7


For stocks the minimum investment is 100 units of any counter. Some brokers however require a bigger amount.


After the initial contact you can send funds by wire transfer (same currency). That means if you wire funds in say USD to the brokers USD account, the accounts dept of the broking house
will physically witdraw the funds from their USD account and convert it at prevailing exchange rate and credit your account

Jambo @mzee gathinga

Yes and No.

Yes in the sense that I have a message to pass to my kenyan audiance for those that are interested now or in the future. Nobody would have known about young if I did not take the bold step to invest in Kenya.


No in the sense that if any body ask specific question, I will endeavour to answer.

INVESTMENT IN GHANA 8

OVERVIEW OF GHANA MARKET


Ghana have a smaller market than Kenya. Their bourse is just 14 years. Only few stocks are active that means in some days or weeks, some equities are not traded on.

There is a strong believe that with the recent introduction of CSD the liquidity and volume will increase over time.

This is the right time to invest there because of anticipated GDP growth.

There is no specific sector per se but I cannot classify Ghana bourse into four distict sectors :-

Financial
Manufacturing
Industrial
Gold Mining.

The most popular (in terms of liquidity) is financial in that order. Gold mining have only two counters. Only one of them can be bought by foreigners the other Anglogold Ashanti Ghana is the preserve of Ghananian citizens.
Ghana offers you an opportunity to buy Gold stocks.

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To butress our discussion find below a typical market trading data , courtesy of databank of Ghana.
It can be seen that out of 37 counters in bourse , only 15 counters were traded on. You can find a similar situation in Botswana, Tanzania, and Uganda bourse. I believe it is a function of people awareness about stock investment.


http://www.databankgroup...m/index1.php?linkid=180

Mzee Young, I enjoyed and learnt reading 'VERY PATHETIC BUT LEARN FROM THIS' and 'MY OWN PERSONAL EXPERIENCE'. In fact you whole missive is very informative. From my own experience, I wonder whether I gain more from Wazua by reading or contributing?

I've noted your budding passion for real estate (30% of portfolio you say) and I'm still really struggling. I honestly wonder whether I own any ounce of real estate in my life.


Shouldn't it suffice if I could find a counter (read company) or fund that invests in real estate and buy what is not so foreign to me (shares, units)?

sINVESTING IN GHANA 10

FINANCIAL SECTOR

Typical of African market, this sectors control 60% or more of daily transaction notable among them are :-

GCB Ghanana commercial Bank
SCB Standard Chartered Bank
EIC Enterprise Insurance company
SG-SSB Societe General Bank
HFC Housing Finance Company
EG Ecobank OF Ghana
ETI Ecobank Trans International
TBL Trust Bank Of Gambia
CAL Bank
UT Financial services

I took position in GCB (the indegenous bank similar to KCB though without too much rigths issue!), Standard Chartered Bank and more highly capitalized local branch Ecobank of Ghana. ETI (Ecobank Trans International)is the headquarters branch of ECobank. There is Ecobank of Kenya.

GCB and SCB are typical foreigners picks might be followed by EG.
Your chosen broker will give you recent research and updates about future prospects of each counter and the standard parameters (PE,ratio etc)

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GCB (GHANA COMMERCIAL BANK THE KING OF GHANA FINANCIAL STOCKS


Look at the following earning announcements, from the bad to the good.

THE BAD

GHANA COMMERCIAL BANK FY 2009
Ghana Commercial Bank (GCB.GH) said on Tuesday its 2009 net profit halved after making higher provisions to cover losses on loans to the domestic oil sector.

Shares in GCB, one of the biggest companies on the Ghanaian stock exchange , fell 4.3 percent to 0.92 Ghanaian cedis on the news it booked a net profit of 18.8 million cedis ($13.3 million), compared to 37.6 million cedis a year earlier.

It also recommended a dividend per share of 3.56 pesewas compared to six pesewas in 2008.

"(An) abnormal increase in the international prices of crude oil and refined petroleum products in 2009 presented serious challenges to the country's downstream oil sector," the company said in its annual report, posted on its website.

GCB, which is the main financier to Ghana's downstream oil sector including the Tema Oil Refinery, said total losses on credit impairment increased to 36.7 million cedis from 8.8 million cedis the year before, with the ratio of non-performing loans to total loans rising to 19 percent from just 2.0 percent in 2008.

Chairman Kojo Thompson said the government last year committed to seeking the funds needed to help settle the bank's exposure to outstanding loans in the oil sector, and added that prospects were more bouyant this year.

"This is buttressed by the economic stabilisation and growth agenda set by the government, coupled with imminent commercial production of oil in the latter part of the year," he added.

Growth in the Ghanaian economy is expected to leap from around 6 percent this year to as much as 15 percent in 2011 -- one of the fastest growth rates in the world -- after the start of output from its Jubilee offshore oil field.

Economists also expect the central bank to continue shaving the prime interest rate from its current level of 16 percent to as low as 14 percent



THE GOOD

GHANA COMMERCIAL BANK Q1 2010
ACCRA, May 4 ( - Ghana Commercial Bank : * Reports Q1 net profit of 21.2 million cedis ($14.97) vs 13.1 million cedis in Q1 2009 * Net interest income up 22.6 percent in same period to 56.4 million cedis GHS= * Net operating income up 28.2 percent to 71.7 million cedis

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ECOBANK OF GHANA HIGHLY CAPITALIZED BUT ABOVE AVERAGE


ACCRA, April 23 (Reuters) - Ecobank Ghana Ltd (EBG.GH) on Friday said 2009 net profit rose to 53.8 million cedi ($37.9 million) from 33.5 million in 2008 as revenue increased from interest, fees and commissions.

Financials

The company, the local unit of the pan-African bank, said shareholders approved a dividend of 0.18 cedi compared with 0.16 cedi paid in 2008.

Interest income rose to 131.4 million cedi from 72.7 million, while fees and commissions rose to 44.2 million cedi from 20.8 million, the company said.

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INDUSTRIAL / MANUFACTURING SECTOR


Notoble among them are :-

Guiness Ghana
Unilever Ghana
Total Ghana
Fan Milk
Mechanical Lyod
Produce Buying Of Ghana

@ Young. My name is Kinuthia Karanja of Investors Lounge. Please inbox me at karanjakinuthia@hotmail.com to discuss a matter.