CAL Bank investors lose as shares slip by 2.4%

CAL Bank investors were left poorer by GH¢0.02 as bank’s share prices declined to start the new month.

Cal Bank closed its trading day (Tuesday, February 1, 2022) at GH¢0.80 per share on the Ghana Stock Exchange (GSE), recording a 2.44 percent drop from its previous closing price of GH¢0.82 to bring to an end the over seven days of consecutive sessions of trading flat on the Ghana Stock Exchange.

However, CAL began the year 2022 with a share price of GH¢0.87 but has since lost 8.05 percent off that price valuation, ranking it fifth on the GSE in terms of year-to-date performance.

In the intervening time, CAL Bank remains the second most traded stock on the Ghana Stock Exchange over the past three months dating back from last year from October 29, 2021 to February 1, 2022. CAL has traded a total volume of 4.88 million shares valued at GHS 4.03 million over the period, with an average of 77,477 traded shares per session. A volume high of 1.35 million was achieved on November 11, for the same period.

Looking at the growth and valuation of the financial sector stock, price per earnings ratio of cal bank stands at GH¢2.21, while earnings per share also stands at GH¢0.3622. The bank currently has an outstanding shares of GH¢627 million and a market capitalization of GH¢501 million.

Market Activity

Last week’s market report showed a lot of activities compared to the previous trading session. At the end of Tuesday’s trading session on the Ghana Stock Exchange (GSE), a total of 1,028,169 shares, corresponding to a market value of GH¢ 870,401.25, were traded.

Comparatively, at the end of the previous day of trading on the Ghana Stock Exchange (January 31, 2022), a total of 13,505 shares, corresponding to a market value of GH¢ 24,830.80, were traded.

In total, seven GSE equities participated in trading. The session ended with Cal bank being the only loser with 2.44% share price depreciation. The other major stocks recorded no change in share price as the market closed the same it opened.

Despite the loss suffered, CAL Bank recorded the highest volume of 1.02 million traded shares. This was followed by MTN Ghana with 6,289 traded shares. Total Petroleum Ghana also secured 1,980 traded shares as against Standard Chartered Bank’s 1,715 traded shares.

Composite Index

With regards to the performance of GSE market indices, the benchmark GSE Composite Index (GSE-CI) slipped by 1.19 points to close at 2,765.61 points, representing a decline of 0.04 percent. The decline led to a 1-week loss of 0.71%, a 4-week loss of 0.85%, and an overall year-to-date loss of 0.85%.

The story is not different from the financial index as the GSE Financial Stocks Index (GSE-FSI) also decreased by 0.1% to settle at 2,129.75 points, making it a 1-week loss of 1.13%, a 4-week loss of 1.03%, and a year-to-date loss of 1.03%.

The total market cap of GSE-listed firms, which reflects investor wealth, maintained its value at GH¢ 63.6 billion.

However, analysts indicated that this kind of correction or a sharp fall by Cal Bank is becoming an opportunity for investors to buy into portfolios though traders may still want to wait.