GSE makes 'worldwide' record

The Ghana Stock Exchange (GSE) recovery has reached a phenomenal point, once again recording the highest year-to-date returns worldwide; but it seems that many local fund managers that invest on the market are still holding a 'wait and see' attitude.

The GSE's negative 46.58% return last year made it the worst performer among the general poor showing of stock markets across the world - not sparing the many equity-based funds that make their profit on the market.

The gradual recovery of the GSE from the beginning of this year came to confirm analysts' forecast that the market would bounce back to positive returns, but last week Friday's 22.96% year-to-date posted by the GSE – the highest return recorded in the world so far – has beat even the most optimistic forecasts.

Contrary to the norm, not a single fund manager has been able to beat the GSE so far; available updates by Gold Coast Securities (GCS) Research show that the NTHC Horizon Fund, which came closest to the GSE, recorded a year-to-date return of 10.46% for the same period.

Other returns made on equity-based funds were SAS Fortune Fund 10.45%; the newest on the market - the Capital Growth Fund - returned 8.17%; Gold Fund 6.18%; and HFC Equity 5.21%. Anidaso Mutual Fund, the only fund currently managed outside of the capital city, recorded a year-to-date return of 4.96% while Epack, the oldest fund on the market, returned 4.64%.

Some Funds suffered a similar fate in 2008, the year the GSE came top of the world with a 58.05% year-to-date for the year. HFC Equity Fund posted a return of 38.89% that year and Gold Fund recorded 37.32% while the Epack, owing to the abysmal performance of the other African markets where it invests, returned a woeful negative 3.84%.

Historically, fund managers' active participation on the market in the years 1997, 1998, 2000, 2001, 2002, 2005, 2006 and 2007 saw them reap huge capital gains for their small fund holders .

Collins Appiah, Head of Research at GCS, the owners of Gold Fund in an interview with B&FT said the passiveness of fund managers this time round could be stemming from the fact' that the" market has just recovered from a deep recession, "and' therefore it is worthwhile that fund managers watch the market for some time before remixing portfolios where necessary," he stated.

Collins, who was optimistic the trend would reverse by close of year, added that last year's recession triggered a wave of redemption by fund holders which continued into the first quarter of this year. "It is the main factor why we have not recorded an impressive performance so far," he said.

The unimpressive performance of the funds - which invest at least 75 percent of their assets on the capital market, stand in comparison to some stocks that have outperformed the GSE.

Ghana Commercial Bank (GCB), which lost 32.73% last year to fall to GH¢0.74, recovered this year to GH¢1.12, representing 1.1 2% year-to-date gain. Cal Bank (Cal) lost 40% last year to GH¢0.20 but has regained to GH¢0.28, to present 40% gain so far. SIC, the biggest insurance firm, also lost 46% last year to GH¢0.27 but has now risen to GH¢0.36, the equivalent of 29.63% year-to-date gain.

Derrick Mensah, also of GCS Research, noted that equity-dominated fund managers in Ghana put not less than 45% of their investments into financial stocks, which has helped to keep their heads above water since the financial stocks have been doing extra well.

"The downside therefore is as a result of the poor showing of the other category of stocks since the year began; such as the brewery, manufacturing and lCT stocks and some of the consumer goods, and distribution and trading stocks," he noted.

According to Collins, these stocks will soon pick up when short-term interest rates and yields on fixed income securities fall further, as expected.

According to him, the benchmark 91-day Treasury bill rate - now at 13.29% - should fall further to single digits by close of year. "If this forecast by the Bank of Ghana is anything to go by, then investors should be paying more attention to the stock market for higher gains and most of these stocks would be beneficiaries," he stated.

He therefore foresees that the current favourable showing of money market funds and balanced funds as compared to equity dominated funds will most likely change in favour of the latter.

Latest updates have quoted a year-to-date return .of 21.58% on the Mfund and 20.41 % on the HFC Unit Trust, both money market funds.

Bright Quaye, also a researcher at GCS, advised investors in mutual funds and unit trusts not to de-invest too quickly at this time because fund managers are experts who are able to take far more informed decisions on their investments than they can do on their own as small fund holders.

"Fund managers are able to diversify their investments on the capital market, which helps to reduce the risk on investments to the barest minimum. As small fund holders, they may not be able to invest in blue chip stocks that earn very high returns, but buying into a mutual fund is an avenue to do so," Bright cautioned.

Source: B&FT

Set Up Your Own Making Money Online Website

Making money legally should be the ultimate goal of everyone;especially the youth. I am saddened by the rate at which "SAKAWA" (Hausa word meaning “putting it in”, but it is being used as a terminology by the current generation of cyber armed robbers.
Mostly done by the youth. They have specialized in divergent ways of cyber robbery, examples include; identity theft (credit card), sending you an email about winning a USA visa lottery and expect you to pay thousands of dollars as processing fee, or an email about trying to transfer millions of dollars that they inherited after the death of a relative, but they need information about your bank account to concluded such transfer...Defn from a Ghanaweb posting:- Columnist: Jawando, Muhammed S.S).

I visited Ghana recently and noticed that a lot of my friends were on facebook. The spend hours updating their pages and loading pictures. They asked me if I had a FB profile. Yes I did but I was not a frequent user. They expressed surprise ( reason-I have 24/7 high speed inter access and can upload/download anything at blistering speed from my home PC in Toronto). Why don't you of all persons use facebook, they asked. Well, I do not make any money from updating my Facebook profile! I challenged them to tell me how to convert all that time sitting behind the PC "facebooking" into money. Of course none could.

I have decided to put this article together to help those who care to make money legitimately online. Its not a for those who want the "sakawa" way of making it, but a real way to turn your "facebook time" into something that could see you earn something...no-matter-how-small. Its also not gauranteed to work for everyone! Remember that Winners never quit and Quitters never win.

When you sit down in front of your laptop monitor and start browsing through the different pages for various topics that may pique your interest, you know that at some point or another of your browsing, you have come across them. Yes, those sites that encourage you to put set up your own online business. And you get yourself to thinking, why not, right? Since you have always been glued to your computer screen, it is just fitting that you set up your very own making money online website.

While it seems futile to be joining the bandwagon so late, do keep in mind that the world of the internet is eternally crazy and filled with wonderful money making opportunities for everyone. So, to come up with your own making money online website for your readers or followers is just but fitting. But after setting up the website, getting the right codes and the design that you want, what happens next?

Do make sure that the title of your website is catchy so as to attract more readers. Remember that the more readers you have, the more traffic your website will generate, the more money you will be raking in. If you were to research on different websites that make money, you will find that they all have something in common. And that is a quirky and catchy title that followers will automatically remember. The next thing to consider when setting up your own making money online website is the content.

Majority if not all of the websites that generate money have very good content for their readers. Do remember that you have a task of regularly updating your website and keeping your content interesting and entertaining as possible for them to keep on coming back for more. When the content is stale or boring, you will see a dwindle in the traffic and your advertisers may not want to place anymore banner ads on your site.

Another thing to consider when you want your website to make money is to get the right mix of internet marketing tools to help promote your site. With marketing tools such as email blasts or banner ads in other websites, you can expect more traffic to your own site which can mean more money for you. With all of these together, you can be guaranteed to make money out of your website.

Setting up your very own making money online website may be hard work at first. But once you get into the hang of things over the next several weeks, you can be sure that things will go on smoothly from there barring any rough patches along the way of course.

Making money online is something that you may now want to consider doing as a full time job as soon as you see the profits that it can give you. The keywords here of course are hard work, dedication, determination and lots of gusto to keep your website churning and working over the next years to come.

Websites like Ghanaweb, myjoyonline,modernghana,peacefmonline,njoyonline etc, are money making machines. I do not have the statistics, but they have traffic enough to convince a company to advertise online with them. They also take advantage of Google adsence and other affiliate marketing tools. The potential is limitless.

Take some time to research into areas that will interest people and get to work. Do not waste time. Use the internet to your advantage. Study Courses, read books, research library materials, essentially, enrich your mind anytime you sit behind the computer. Set a goal for yourself so you can track your progress.

Remember, those making it online are not better than you. You can also make it legally. Start today.


nb:- Portions of this piece are from other online posts