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Business & Finance | Nov 12, 2004

The GSE All-Share Index in Downward Trend

SDC Brokerage

SDC Brokerage-- The GSE All-Share Index continued its downward trend, dipping 36.46 points to close at 6,896.44 points. There was one gainer, two losers and twenty-five non-movers.

CFAO, the only gainer of the week, appreciated 5.9% to ¢180 per share with 40,000 shares traded. The trading company announced a significant increase of 107% in turnover, from ¢53bn for 3Q 2003 to ¢109bn for 3Q 2004.

The company's cost of sales for 3Q 2004 also increased by 113% to ¢89bn, from ¢42bn for 3Q 2004. Gross profit went up by 83%, from ¢11bn to ¢20bn for 3Q 2004.

Trust Bank of the Gambia was the most active stock of the week with 152,600 shares exchanging hands but the price remained unchanged at ¢31,000. The bank recorded an increase of 47% in net interest income rising to D108 for 3Q 2004, up from D74m for 3Q 2003. Net profit went up 19% to D116mn for 3Q 2004.

The shares of TBL, the only cross-border company listed on GSE, have gained 218% since January 2004.

BOPP, the Unilever subsidiary, closed 10% down at ¢9,000 a share with 2,300 shares changing hands. The selling pressure being experienced by BOPP was compounded when the company released a result, described by shareholders as 'disappointing'.

The company recorded an increase of 8% in turnover at ¢65bn for 3Q 2004, but a significant drop of 99% in operating profit from ¢12bn to ¢132mn for 3Q 2004. This performance according to BOPP was due to 26% drop in palm oil production owing to the outbreak of leaf minor.

The situation however has been brought under control and normal crop yield patterns are expected in 4Q 2004. Unilever, the other loser, dropped (4%) ¢1,000 at ¢24,000 per share, with a low volume of 400 shares.

The stock has been experiencing selling pressure for the past three months fueled in part by the company's modest 3Q result released during the week. UNIL announced a growth of 3.1% in turnover for 3Q 2004, from ¢207bn to ¢213bn for 3Q 2004. Operating profit improved by 16% over 3Q 2003 to ¢10bn in 3Q 2004.

MOGL reported a drop of 6% in turnover, from ¢1bn for 3Q 2004 to ¢987mn for same period in 2003. Net profit for 3Q 2004 declined 55% to ¢7bn from ¢16bn for 3Q 2003.

Mobil seem to be going through difficult times this year due to strong competition in the oil retailing industry. The price per share was ¢38,200.

BAT made total sales of ¢340bn for 3Q 2004, up 19% compared to ¢286bn for 3Q 2003. Trading profit increased marginally by 1.3% to ¢42bn for 3Q 2004. BAT announced an interim dividend of ¢80 a share, which is an improvement of 45% over the previous year's interim dividend. BAT traded 2,600 shares during the week with the price unchanged at ¢7,700 per share.

CAL Bank listed on the GSE during the week. Due to the significant oversubscription, refund in excess of ¢290bn ($32mn) are being made to subscribers. The stock did not trade after listing as certificates are not out.

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