Bullish EBG promises high returns for investors

A weekly analysis of stock performance on the Ghana Stock Exchange (GSE) by investment research firm, GN Research, has showed that the shares of Ecobank Ghana Limited (EBG) will be in hot demand this week, following a strong appreciation in the equity’s share price.

The consistent appreciation in the share price is as a result of Ecobank’s strong financial results for the first quarter of this year and full year of 2014.

Additionally, GN Research also predicts that FML, CAL, HFC Bank and BOPP will be the other four top stocks for investors seeking to maximise returns on their investments.
Below is a list of the firm’s top five picks for the week.

EBG
Analysts predict a week close price of GH¢9.29 for EBG. The stock experienced phenomenal appreciation in the past weeks and that was clearly driven by strong fundamentals and good outlook.
With positive asset quality and strong earnings outlook from the 2014 financials, EBG is clearly set to surge further in prices in the coming weeks and GN Research Market Analysts predict upside price movements this week. We recommend a buy strategy for potential investors.

FML
Although disadvantaged as a result of the current energy crisis, FML’s huge profits from the first quarter financials caused investors to take a look at the stock, hence its current price appreciation in the past weeks.

FML currently trades above its year-open and analysts are optimistic the trend will follow as the momentum of growth and appreciation saw a marginal decline. Analysts predict a week close price of GH¢5.65 to increase investors’ capital gain.

CAL
CAL is one of the most liquid assets currently on the stock market although its performance on the exchange does not reflect the performance of the bank.

Although it registers frequent price movements, the price of this stock has ranged between GH¢0.95 and GH¢1.10 per share for the past 52 weeks.

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The relatively highly liquid nature of this stock makes it preferable for investment in the short-term. Currently trading at GH¢1.10 per share, analysts predict a week close price of GH¢1.13.

HFC
Emerging as the top gainer for 2014, the equity since year open has recorded improved liquidity levels and phenomenal price appreciation after the announcement by Republic Bank buy back shares and analysts are optimistic the momentum of growth in price will resurface this week. We recommend a hold strategy for all investors. We also predict a week close price of GH¢1.76.

BOPP
BOPP traded flat to maintain the fourth position of analysts picks for the week. We still maintain that BOPP is essential for every investment portfolio after emerging as the top gainer for first quarter this year and recording a price appreciation growth rate of 3.96 per cent.

BOPP currently is one of the most liquid equities on the exchange and we recommend a hold strategy for shareholders since our analysts are optimistic capital gains will surge up this week.

GN Research/GB