Benso Oil Palm Plantation, BOPP has once again stood out as the best performing stock on the Ghana Stock Exchange in terms of returns to investors for second quarter of this year.

The company returned 56 percent more of the value of its shares to its investors – the best on the local bourse from January to June. The gains however represent a marginal decline compared to the 60 recorded in the first quarter of this year.

The Head of EDC Stock Brokers, Mahama Iddrissu spoke to JOY BUSINESS about the factors that could be accounting for BOPP?s good run on the exchange.

?Wilmar, which are experts in the business-area of BOPP after buying into BOPP are now able to control their cost and this reflects in the company?s bottom lines. The company is also one of the company?s able to pay good dividends to their shareholders. The limited number of BOPP shares on the market is also contributing to the company?s good performance? he noted.

BOPP?s profits for last year shot up by over 200 percent for last year.

Meanwhile, the Ghana Stock Exchange returned an average of a little over 7 percent of share prices to investors who bought securities on the exchange between January to June. This is quiet low compared to other investment instruments like treasury bills and interest on bank deposits.

Head of CAL Brokers, David Tetteh, also explains to JOYBUSINESS what accounted for the decline.

?A decreased level of trading volumes with a corresponding level of decrease in some of the share prices because we don?t have a lot of buyers in the market now. So to a large extent when the fopreign investors sit on the fence people are not buying leading to a drop in share prices. For local investors too, they now prefer investing in government securities which have higher and risk free rate compared to investing in the stock market? he said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.