On the Ghana Stock Exchange
In Q2-2018, BOPP’s profit after tax fell to GHS 5.50 million from 8.51 million in Q2-2017. The decline in earnings for this period was driven in part by a fall in revenues attributable to lower crude palm oil (CPO) prices on the world market. BOPP’s revenues fell to 45.91 million in Q2-2018 from 54.42 million in Q2-2017. The rise in the company’s administrative expenses by approximately 12.8% also contributed in part to the fall in its profits. Its return on equity fell to 8.1% in Q2-2018 from 13.7% in Q2-2017.
In terms of its ability to cover short-term liabilities, BOPP’s current ratio rose to 2.15x in Q2-2018 from 1.76x in Q2-2017. BOPP’s inventory turnover which indicates the number of times it sold and replaced its inventory fell to 4.84x in Q2-2018 from 8.14x in Q2-2018. BOPP’s total asset turnover which measures the efficiency with which it deployed its assets to generate revenues declined from 0.67x in Q2-2017 to 0.56x in Q2-2018.
In terms of share price performance, BOPP has rewarded investors with a YTD return of 18.46%. Management expects to meet its planned production targets for Q3-2018. Although CPO prices are expected to remain bearish on the back of an anticipated increase in supply of CPO from Malaysia, it is expected that BOPP will remain profitable for the rest of the year by enhancing its cost efficiency and production. BOPP’s share price may decline marginally in the short term on the account of the fall in its earnings in Q2-2018.
The Composite Index and the Financial Stocks Index declined marginally by 0.76 points and 1.01 points to peg at a YTD return of 13.66% and 14.98% respectively. There were 3 gainers [EGL, CAL & EGH] and 3 losers [SIC, SCB & SOGEGH]. SPL topped the charts in terms of volumes as 65,400 shares worth GHS 654 changed hands.
On the Ghana Alternative Market
Trading activity on the Ghana Alternative Market was hushed as no shares changed hands.
On the Currency market
The Cedi depreciated marginally against the Dollar, the Euro and the British Pound at the end of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.6961 to the USD, GHS 6.1710 to the GBP and GHS 5.4973 to the EURO. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date depreciation of 5.06%.