Global Equity Markets Sold Off Wednesday While U.S. Stocks Make Comeback Ending Flat- Victory Of Sorts

Wednesday, May 23, 2012

With already huge losses, stocks continue the deep dive on growing speculation that Greece will exit the Euro;  that brings up all kinds of worries like what will happen to Spain- Italy- Euro Area- what will happens to the Euro currency- What will Greece do for a currency- how much will the Greek people lose and the big question, how will this all unfold.

 

Stocks looked very negative during the day with Europe and Asia markets ending well into negative territory;  U.S. tries for a neutral end as it streams higher going into the close Wednesday.

 

U.S. posted a mixed close making a comeback, rallying back from deep in negative territory;  NASDAQ posted a 0.4 percent gain, S&P 500 posted a 0.2 percent gain while the Dow closed virtually unchanged after being down in triple digits.

 

Two cable network stations say that the NYSE is trying to get Facebook to move to the NYSE just after days of trading on the NASDAQ.

Shareholders sue Facebook, NYSE comes calling

SAN FRANCISCO (Reuters) - The fallout from Facebook Inc's messy initial public offering widened on Wednesday as shareholders sued the social network and its bankers while a trading firm revealed a massive loss on the shares and threatened to seek "remedies."

The Nasdaq stock exchange also came under further pressure as a source close to the situation told Reuters that NYSE Euronext had opened discussions with Facebook about a potential stock listing there. Nasdaq also faces litigation from angry investors.
Facebook's listing, envisioned as a crowning moment for an eight-year-old company that has become a business and cultural phenomenon, has instead turned into a legal and public relations fiasco for the company and its lead underwriter, Morgan Stanley.
Serious trading glitches interfered with the stock's opening on Friday, and subsequent revelations by Reuters that analysts had quietly reduced their revenue forecasts prior to the IPO have led to accusations of selective disclosure of material information. The shares closed at $32 on Wednesday, 15 percent below the IPO price.
A lawsuit filed on Wednesday seeking class-action status alleged that defendants -- including Facebook, its Chief Executive Mark Zuckerberg, Morgan Stanley, Goldman Sachs Group Inc and JPMorgan Chase & Co -- concealed "a severe and pronounced reduction" in revenue growth forecasts resulting from greater use of Facebook's app or website through mobile devices.
It also accused Facebook of telling its bank underwriters to "materially lower" their forecasts for the company. The lawsuit said the underwriters disclosed the lowered forecasts to "preferred" investors only.
"The main underwriters in the middle of the roadshow reduced their estimates and didn't tell everyone," said Samuel Rudman, a partner at Robbins Geller Rudman & Dowd, which brought the lawsuit. The firm is among the leading securities class actions firms in the country.
"I don't think any investor in Facebook wouldn't have wanted to know that information."
Andrew Noyes, a Facebook spokesman, said: "We believe the lawsuit is without merit and will defend ourselves vigorously."
Morgan Stanley had no comment. It said on Tuesday that Facebook IPO procedures complied with all applicable regulations and were the same as in any initial offering.
Also on Wednesday, Knight Capital Group Inc said its second-quarter results will be hurt by losses related to numerous issues during the listing. The firm, which provides electronic trading services to brokers and retail clients, foresees a pre-tax loss of $30 million to $35 million related to the IPO.
The company has submitted claims for financial compensation from Nasdaq OMX and is considering all legal remedies available, Knight Capital said in a regulatory filing.
Knight Capital's announcement may be a sign of things to come as other traders and investors tally up losses from the trading problems.
Nasdaq OMX was also sued on Tuesday by an investor who claimed the exchange operator was negligent in handling orders for Facebook shares. Morgan Stanley said it is reviewing Facebook trades and would adjust prices for some retail customers who overpaid.
A source familiar with the situation told Reuters that NYSE Euronext had opened discussions with Facebook about a potential stock listing there, and that the social networking giant was considering its options.
The largest U.S. exchange later denied it was discussing a full listing transfer with the company, which became the first U.S. company to debut with a market value of over $100 billion.
IPO INVESTIGATIONS
Wednesday's lawsuit, one of several that have been filed around the country, was brought in New York on behalf of Dennis Palkon and Brian Roffe, who said they respectively bought 1,800 and 200 Facebook shares at the IPO price, and Jacob Salzmann, who said he paid more than $123,000 on May 18 for 2,961 shares at an average $41.77 each.
Research analysts at several underwriters lowered their forecasts for Facebook after the Menlo Park, California-based company in a May 9 prospectus cautioned investors about the possible impact of users shifting to mobile platforms. Facebook currently makes little revenue from mobile ads.
Citing people with direct knowledge of the matter, Reuters reported this week that, during its IPO road show, Facebook advised analysts for its underwriters to reduce their profit and revenue forecasts.
The lawsuit named underwriters Morgan Stanley, Goldman Sachs, JPMorgan and Bank of America Corp as having cut their forecasts after the May 9 prospectus was filed, but that these cuts were not publicly revealed before the IPO. [ID:nL4E8GM8SK][ID:nL1E8GN0FT]
The plaintiff-shareholders called the disclosures of Facebook's business risks inadequate, saying that analysts knew more about these risks and cut their business outlooks accordingly -- for the benefit of only some investors, not all.
"If Facebook told analysts to materially lower their forecasts, it should have told the entire market," said Antony Page, a professor at the Indiana University Robert H. McKinney School of Law. "We need to know what exactly was said to the analysts, and determine how different Facebook's public story was from its private story."
Regulators including the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and Massachusetts Secretary of the Commonwealth William Galvin are now looking into how the IPO was handled. The U.S. Senate Banking Committee is also reviewing the matter.
"If Facebook faced a known and particularly salient risk, boilerplate language would be insufficient," said Elizabeth Nowicki, an associate professor at Tulane University Law School and a former SEC lawyer.
Bank of America and Barclays Plc are also defendants in the New York case, as are Facebook Chief Financial Officer David Ebersman and several Facebook directors.
Bank of America spokesman Bill Halldin, Barclays spokesman Mark Lane and Goldman spokesman Michael DuVally declined to comment. JPMorgan did not respond to requests for a comment.
The case is Brian Roffe Profit Sharing Plan et al v. Facebook Inc et al, U.S. District Court, Southern District of New York, No. 12-04081.
(Additional reporting by Alistair Barr in San Francisco, and Nadia Damouni and Olivia Oran in New York and Sarah N. Lynch in Washington, D.C.; Editing by Jonathan Weber, Edwin Chan, Martha Graybow and Steve Orlofsky)

North and South American Indexes

	Index	Country	Change	% Change	Level	Last Update
	Dow Jones Industrial Average	United States	-4.81	-0.04%	12,491.34	11:55am ET
	S&P 500 Index	United States	-0.77	-0.06%	1,318.09	11:55am ET
	Brazil Bovespa Stock Index	Brazil	-529.94	-0.97%	54,089.54	11:40am ET
	Canada S&P/TSX 60	Canada	+1.99	+0.30%	660.93	11:40am ET
	Santiago Index IPSA	Chile	+42.61	+1.01%	4,244.06	11:35am ET
	IPC	Mexico	+197.99	+0.53%	37,620.37	11:35am ET

Wall Street little changed on euro zone worries, data

NEW YORK (Reuters) - Stocks were little changed on Thursday in volatile trading as ongoing concerns about Greece's possible exit from the euro zone and tepid data on the economy gave investors little reason to take risk.

Data showed demand for long-lasting manufactured goods rose less than expected in April while weekly jobless claims dipped modestly for the week ended May 19.
"Durables showed the hope in the recovery in manufacturing seems to be stalling, not a lot of excitement there. The only bright spot in the economy seems to be that housing is bottoming out and that's about it," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.
Trading was expected to be volatile throughout the day as regional data out of Europe showed some deterioration in economic activity and investors remained concerned about Greece's possible exit from the euro zone.
Surveys showed Europe's major economies suffered a contraction in their manufacturing activities and the German business climate deteriorated.
The Dow Jones industrial average <.DJI> was down 4.31 points, or 0.03 percent, at 12,491.84. The Standard & Poor's 500 Index <.SPX> was up 1.02 points, or 0.08 percent, at 1,319.88. The Nasdaq Composite Index <.IXIC> was down 5.20 points, or 0.18 percent, at 2,844.92.
HP shares rose 4.5 percent to $22.01 a day after the company announced plans to lay off about 8 percent of its workforce over the next couple of years.
After the close of stock market trade on Wednesday, electronic trader Knight Capital Group said it suffered a pre-tax loss of $30 million to $35 million on the botched Nasdaq trading debut of social media giant Facebook and is demanding the exchange compensate that amount.
The loss, which Knight said will be recorded in its second-quarter results, was due to numerous problems related to the Facebook initial public offering. Knight Capital Group shares were down 1.6 percent at $12.24 and Facebook shares were up 2 percent at $32.69.
(This story refiled to change was to were in lead paragraph)
(Reporting By Angela Moon, editing by Dave Zimmerman)

 TOP 5 FRANCHISE WORTH LOOKING AT
If you’re ready to run your own business the idea of being part of a franchise can be tempting – after all, you have the advantage of starting with a brand that’s already established. The question is, which franchises are worth taking an interest in?
AllBusiness.com does an annual “AllStar Franchises” list where they determine the most promising franchise to invest in based on growth, financial strength, and brand awareness among other things. Below is the a summary of which businesses made the top five, you can visit their website for the complete list.
1. Subway Shops
No newcomer to the list, Subway made it to number one for the fourth straight year in a row. Among the reasons for its top ranking, Subway includes top brand awareness, strong growth, and locations everywhere. In terms of operating costs, the cost of total investment ranges from $84,000 to $258,000, with a franchise fee of $15,000 and a royalty fee of 8%.
2. 7-Eleven Stores
Moving up from number 6 last year, 7-Eleven owes its higher ranking to the improvements in longevity, brand awareness, and growth.  7-Eleven is also franchisee-friendly, and has been known to buy the land, building and equipment in addition to building the store.
3. Jimmy John’s Gourmet Sandwiches
Based in Illinois, Jimmy John’s crept from number 5 to number 3 in large part because its franchise fee is $35,000, with a royalty fee of 6%, and a total investment of $306,000 to $461,000. The chain also ranks 7^th in web visibility and 16^th for growth.
4. Dunkin’ Donuts
Moving down from number 2 last year, Dunkin’ Donuts still has high ranking in brand awareness (5^th), and has been trying to expand the business outside its home region. Oftentimes pairing with Baskin-Robbins ice cream, the franchise fee for Dunkin’ Donuts is $40,000 to $80,000, with a royalty fee of 5.9% and a total investment of $358,000 to $2 million.
5. Kumon North America
A tutoring center for elementary school students, Kumon’s ranking has shot up from 21^st place last year to breaking into the top 5. The company has 25,000 centers with 4 million customers, and has low costs associated with its startup. A franchise fee is $1,000, a royalty fee is $32 to $36 (per student, per subject) each month. The cost of total investment is $68,000 to $145,000.
A franchise is a great possibility to begin a new career as your own boss, but it still requires the same dedication, time and effort as any business built from scratch. Learning the cost (financial as well as emotional) associated with any type of business is important to research, and looking at successful franchises helps in gaining that understanding. After all, any successful business owner will tell you that being prepared is your best chance for success.

Warren Buffett Just Put $1.9 Billion in European Stocks… What Is He Buying?

Posted by Paul Mampilly, Daily Wealth

Warren Buffett is buying Europe…
On February 27, 2012, the most successful investor in history – and the world’s second-richest man – announced on CNBC that he had put $1.9 billion into eight European stocks.

I wasn’t surprised. In fact, I’d been expecting this for months. And I already have a hunch which stocks he bought… Buffett loves to buy big companies. Big companies are most likely going to survive 10, 20, even 50 years. Besides, with as much money as Buffett has, he has to buy big companies.
Buffett also loves to buy cheap. He defines cheap relative to future growth over a very long period of time. Buffett’s most famous investment is Coca-Cola. He bought up 7% of the company for around $1 billion in 1988. His shares in Coca-Cola are worth about $14 billion today. Buffett still loves the company. He hasn’t sold a share since he bought it.
Big branded companies like Coke don’t often sell at big valuation discounts. But on the rare occasion they do, you can usually count on Buffett to buy big.
And right now, dozens of potential Coca-Colas – big, well-known consumer-focused companies – are operating in the European market. The European debt crisis has caused stock prices to fall by nearly 40%. Many of these high-quality European stocks have fallen to compelling price levels.
That’s how I knew Buffett was looking at Europe. It’s a rare, irresistible opportunity for him to pick up excellent companies at good prices. And we should follow his lead…
It turns out, just doing what Buffett does beats the market. Between 1976 and 2006, if you simply mimicked Buffett’s buys, after he publicly disclosed his stock picks, you’d have blown away the S&P 500 by 11% per year. And during those years, following Buffett’s stock picks beat the S&P 500 index 27 out of 31 years. So you weren’t taking any more risk to get these results.
Now… Buffett didn’t disclose which European stocks he bought. Here’s what he said:
I just thought these eight companies were terrific companies that were cheap. These companies will do fine regardless of what happens in Europe – and there will probably be plenty that happens in Europe. And they obviously were affected by the European crisis. And in the end, those eight companies I bought are going to be there 5, 10, 20, 50 years from now.
So we can’t know for sure where Buffett put his money. But I have two likely names for you…
Nestle, a giant Swiss consumer-products company, fits Buffett’s profile perfectly. It makes baby food, chocolates, coffee, ice cream, and more. Its 10-year growth rate is 10%. And it gets 40% of its growth from developing countries.
Last year, the $200 billion company generated $9.5 billion in profits. It’s trading at about 16 times 2012 earnings. And it pays a dividend yield of 3.5%.
Another investment I’m sure Buffett likes is Danone. Based in Paris, Danone produces and distributes food products worldwide. It owns brands like Evian water and Stonyfield Farm. Danone’s 2011 growth rate was 6.5%.
Last year, the $33 billion company generated $1.874 billion in free cash flow. It’s trading for 15 times 2012 earnings. And it has a dividend yield of 2.75%.
You can buy both companies in the U.S. The ticker for Nestle is NSRGY. The ticker for Danone is DANOY. Many online brokers can also buy the stocks directly on European exchanges, though higher fees usually apply.
When Buffett files his first-quarter results with the SEC in May, we’ll get our first chance to see what Buffett bought in Europe. (If he’s still not done buying, he could delay disclosing his picks until August.)
I can’t guarantee Nestle and Danone are where Buffett’s put his money. But I know from studying his portfolio that these are exactly the types of companies he likes to buy. Both these companies have strong brands, they’re growing, and they’re going to survive 20, 30, or 50 years. And they both pay a steadily growing dividend.
If you’re looking to beat the market by double digits – like Buffett – you should consider putting Nestle and Danone into your portfolio.
Good investing,
– Paul MampillySource: Daily Wealth

Buffett Just Bought 9.3 Million Shares of This "Forever" Stock
This stock has plowed through eight bear markets and has returned 170,000% since 1972. Every $725 you put in back then, would be worth over $1 million right now. Today, the company is raising its dividend, spending billions to buy back its own shares, making smart acquisitions, and is the dominant leader in a $30 billion market. We'll tell you about this "Forever" stock -- and NINE others -- in our latest presentation: "The 10 Best Stocks to Hold Forever."

Euro Can’t Maintain Gains in Forex Trading

Earlier, the euro showed signs of fight as it headed higher against the US dollar. Now, though, the euro can’t maintain gains in Forex trading and is headed lower. Worries about the eurozone, and what’s next for the currency region, are causing doubt, and uncertainty means that Forex traders are looking for safety — and safety can’t be found in the euro right now.
After seeing some earlier gains and breaking back up through the 1.2600 level against the US dollar, euro is once again lower. The 17-nation currency has been unable to hold onto gains briefly enjoyed in the wake of positive economic data out of the United States. Now that optimism is gone, and traders are left with concerns about what’s next for the eurozone.
Investors are so seeking safety that they just bought 4.6 billion euros’ worth of German bonds — at 0 per cent. The fact that investors are so uncertain about the eurozone that they are willing to simply preserve capital, rather than seek returns, is rather telling. It doesn’t bode well for the eurozone. Germany remains opposed to the idea of eurobonds, and, even though EU leaders are trying to keep Greece in the currency union, there are doubts about the feasibility of that outcome.
At 14:17 GMT EUR/USD is down to 1.2581 from the open at 1.2582. EUR/GBP is down to 0.8014 from the open at 0.8019. EUR/JPY is down to 99.9215 from the open at 100.0245.
If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

5 Ways To Get Venture Capital Funding

Thanks to the Internet and the advent of social networking communities, raising capital to start or grow a business has never been easier. These days, there is really no limit on how small or big an idea is, and there is a high likelihood that some outside party will be willing to fund at least a part of its development. There are opportunities to raise money from individuals, as well as sophisticated shops that specialize in funding venture capital endeavors. Below are five tips to help find that capital.

SEE: How Venture Capitalists Make Investment Choices

Create Your Business Plan
At the risk of sounding obvious, success in obtaining funding stems directly from how strong the business idea is. The best way to investigate this is to get a detailed business plan together. The basic points of a plan include a summary of the company or opportunity, industry overview and details of the strengths, weaknesses, opportunities and threats (SWOT) facing the venture, as well as a financial overview, including past performance (if available), and projections for at least the next five years.

Advertisement - Article continues below. Including this information will help in clearly presenting the plan to outside funding entities, but can also be instrumental in helping an entrepreneur further define the opportunity and make important tweaks as he or she moves along the path of growing the company.

Take Advantage of Online Networking
The Internet is proving instrumental in helping small and start-up businesses gain access to capital. The advent of social media platforms, including LinkedIn, Facebook and Twitter, provide opportunities for entrepreneurs and business professionals to learn about each other. For instance, LinkedIn has a number of networks for firms seeking venture capital funding and want to learn about companies that may provide it. Other sites, such as Second Market, provide platforms to trade ownership stakes in private firms, though many of these firms are already established by then and are seeking secondary rounds of capital.

Consider Crowdfunding
An important subset of the online community is the recent advent of crowdfunding. There are dozens of websites that seek to connect individuals with entrepreneurs looking for capital. Kickstarter.com has turned out to be one of the more popular sites and is very appealing for start-up firms, as individuals effectively donate funds in exchange for company merchandise and bragging rights if they help fund a firm that ends up becoming quite successful. Other sites might place individuals seeking an ownership stake, but this is to be expected for any start-up looking for sources of outside funding.

Today's Top Stock Picks

Raise Less Than $1 Million
Investing in private and start-up companies usually requires that investors be wealthy. This is meant to help ensure that they can risk losing their money, because the failure rate for venture capital is very high. The recently enacted JOBS act has loosened these requirements and has made it possible for companies looking for less than $1 million in total capital to raise funds from investors that don't qualify as accredited, or wealthy, investors. These requirements vary by state, making it important to verify local regulations.

SEE: Valuing Startup Ventures

Go Directly to the VC Community
Of course, entrepreneurs who have developed a solid business plan and believe that their idea requires millions in capital from savvy venture capital investors, may want to solicit their advice directly. This can stem from sending them a business plan, or getting in front of local VC organizations where the idea can be presented to a group of professional investors. The hit rates are quite low by taking this approach, but gaining the interest of any of these shops could easily make the difference between success and failure. By again taking advantage of the Internet, local and national VC firms can be easily located.

SEE: Seek An Adventure In Venture Capital

The Bottom Line
These days, and thanks in good part to the Internet and social media sites, a company can raise thousands of dollars to many millions to get a company off the ground or obtain capital to help it grow. Any outside investor is going to require regular updates and the larger, more sophisticated shops may even require a direct say in making company decisions, but the potential upside could far outweigh the additional responsibilities that come with taking in outside investors.

Read more: http://www.investopedia.com/financial-edge/0512/5-Ways-To-Get-Venture-Capital-Funding.aspx#ixzz1vnpEIgW7

 

Forex trading crowds continue to sell aggressively into US Dollar strength (ticker: USDOLLAR) as it hits fresh multi-year highs, and one-sided sentiment favors continued USD strength versus the Euro, Canadian Dollar, Swiss Franc, and British Pound.

Our forex sentiment-based trading strategies continue buying into US Dollar and Japanese Yen uptrend across the board, and we see little reason to call for any significant short-term reversals. In fact the Dow Jones FXCM Dollar Index seems poised to register fresh peaks as long as it remains above resistance-turned-support at previous 2012 peaks near 10,100.

As with any strong currency trend there are always risks of near-term corrections. That said, we see little reason to call for any larger turnarounds as retail FX trading crowd sentiment hits the most extremely bearish US Dollar against the Euro and other currencies since the USD rallied to important peaks in late 2011.

View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.

How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to drodriguez@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Invest In These Four Socially Responsible Stocks

It should come as no surprise then that investors have carved out a niche strategy within the market known as "socially responsible investing", in order to align their political and ethical goals with their economic aspirations.

Investopedia Broker Guides: Enhance your trading with the tools from today's top online brokers.

What Is A Socially Responsible Investment?Socially responsible investments will differ for each investor according to his or her convictions. One investor may feel there is nothing wrong with a particular company's line of work or business practices, while another may consider the company entirely unethical. While there is no universal set of characteristics that define a socially responsible stock, there are certain themes that tend to be commonly associated with socially responsible investing.

First off, socially responsible investors typically prefer to avoid making investments in companies that engage in the production or sale of alcoholic beverages, tobacco products, gambling or sports betting activities, adult entertainment, and tools of warfare or violence (guns, bullets, bombs, etc.).

Read more: http://www.investopedia.com/stock-analysis/2012/Invest-In-These-Four-Socially-Responsible-Stocks-T-INTC-GE-IBM0523.aspx#ixzz1vnnGR7Bm

How To Trade Forex On News Releases 

One of the great advantages of trading currencies is that the forex market is open 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world. With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.

Read more: http://www.investopedia.com/articles/forex/05/TradingOnNews.asp#ixzz1vnmL8y4h

 

May

23

+ MARKET HIGHLIGHTS This week in Focus Shares Bonds   Date Volume GSE Composite Index(GSE-CI) Market Capitalization GH¢ million Value of Coporate Bonds Traded US$ Value of Government Bonds Traded GH¢ million Monday 21-May-12 2,789,070 1,037.92 54,474.58 0 0 Tuesday 22-May-12 296,784 1,039.28 54,481.75 0 0 Wednesday             Thursday             Friday             Note: The base date for the GSE-CI is December 31, 2010 and the base index value is 1000

Trading Results - GH Cedi

  

Regular Market Data

Date: Tuesday, May 22nd, 2012

	Session	ISIN	Share Code	Year High (GHS)	Year Low (GHS)	Previous Closing Price VWAP (GHS)	Opening Price (GHS)	Closing Price VWAP (GHS)	Price Change (GHS)	Closing Bid Price (GHS)	Closing Offer Price (GHS)	Total Shares Traded	Last Transaction Price (GHS)
	3751	GH0000000615	AADS	0.51	0.50	0.52	0.52	0.52	0.00	0.50		0	0.52
	3751	GH0000000193	ACI	0.08	0.08	0.08	0.08	0.08	0.00		0.08	0	0.08
	3751	GH0000000607	AGA	34.00	34.00	34.00	34.00	34.00	0.00			0	34.00
	3751	GH0000000037	ALW	0.13	0.05	0.07	0.07	0.07	0.00	0.06	0.07	2,200	0.07
	3751	GH000000000672	AYRTN	0.18	0.17	0.17	0.17	0.17	0.00	0.17		0	0.17
	3751	GH000000000581	BOPP	1.78	1.10	1.65	1.65	1.64	-0.01	1.64	1.65	200	1.64
	3751	GH000000000649	CAL	0.28	0.24	0.24	0.24	0.24	0.00		0.24	0	0.24
	3751	GH0000000573	CLYD	0.04	0.04	0.04	0.04	0.04	0.00		0.04	0	0.04
	3751	GH0000000227	CMLT	0.12	0.11	0.12	0.12	0.12	0.00	0.12		0	0.12
	3751	GH0000000540	CPC	0.02	0.01	0.02	0.02	0.02	0.00	0.01	0.02	0	0.02
	3751	GH0000000680	EBG	3.25	3.00	3.00	3.00	3.00	0.00		3.00	0	3.00
	3751	GH0000000060	EGL	0.38	0.34	0.30	0.30	0.30	0.00	0.29	0.30	2,500	0.30
	3751	GH0000000698	ETI	0.15	0.10	0.13	0.13	0.13	0.00	0.12	0.14	33,100	0.13
	3751	GH0000000078	FML	2.36	2.18	2.20	2.20	2.20	0.00		2.15	0	2.20
	3751	GH0000000094	GCB	1.95	1.85	1.91	1.91	1.92	0.01	1.92		72,100	1.92
	3751	GH0000000102	GGBL	1.79	1.53	1.77	1.77	1.79	0.02	1.79		2,100	1.79
	3751	GH0000000722	GOIL	0.45	0.32	0.43	0.43	0.45	0.02	0.43	0.45	72,600	0.45
	3751	GH0000000748	GSR	2.75	2.75	2.75	2.75	2.75	0.00		2.75	0	2.75
	3751	GH0000000631	GWEB	0.04	0.04	0.04	0.04	0.04	0.00			0	0.04
	3751	GH0000000110	HFC	0.45	0.43	0.45	0.45	0.45	0.00		0.45	72,800	0.45
	3751	GH0000000136	MLC	0.11	0.10	0.10	0.10	0.10	0.00	0.07	0.10	20,000	0.10
	3751	GH0000000169	PBC	0.25	0.24	0.24	0.24	0.24	0.00		0.24	0	0.24
	3751	GH0000000151	PKL	0.06	0.06	0.06	0.06	0.06	0.00			0	0.06
	3751	GH0000000177	PZC	0.24	0.24	0.22	0.22	0.22	0.00		0.22	0	0.22
	3751	GH0000000185	SCB	51.30	45.48	50.00	50.00	49.99	-0.01		49.90	10,020	49.90
	3751	GH0000000664	SCB PREF	0.52	0.52	0.52	0.52	0.52	0.00	0.52		0	0.52
	3751	GH0000000201	SG-SSB	0.49	0.40	0.39	0.39	0.39	0.00		0.39	100	0.39
	3751	GH0000000730	SIC	0.40	0.35	0.37	0.37	0.37	0.00	0.35	0.37	5,000	0.37
	3751	GH0000000623	SPL	0.04	0.03	0.04	0.04	0.04	0.00		0.04	0	0.04
	3751	GH0000000516	SWL	0.02	0.02	0.02	0.02	0.02	0.00			0	0.02
	3751	GH0000000532	TBL	0.40	0.40	0.40	0.40	0.40	0.00		0.40	0	0.40
	3751	GH0000001050	TLW	38.00	30.00	38.00	38.00	38.00	0.00	38.00	40.00	0	38.00
	3751	GH0000000144	TOTAL	27.00	19.83	22.45	22.45	22.12	-0.33		22.45	110	22.00
	3751	GH0000000706	TRANSOL	0.05	0.05	0.05	0.05	0.05	0.00		0.05	0	0.05
	3751	GH0000000219	UNIL	8.32	6.63	8.30	8.30	8.32	0.02	8.32	8.35	3,000	8.32
	3751	GH0000000755	UTB	0.33	0.30	0.33	0.33	0.33	0.00		0.33	0	0.33

Corporate Bonds

  

Date: Tuesday, April 03rd, 2012

	Session	ISIN	Value (million)	Coupon %	Maturity	Current Yield (%)	Bid Price (%)	Offer Price (%)	Closing Price (%)	Value Traded US$
	3719	GH0000000862	US $3.9	6 mths USD Libor + 100 basis point	7/3/2012				100.00	0

World Bank approves $120m financing to expand agric technologies in Ghana, Senegal

Page last updated at Thursday, May 24, 2012 8:08 AM // Leave Your Comment

The World Bank’s Board of Executive Directors on May 22, 2012 approved a $120 million financing facility for the second phase of the West African Agricultural Productivity Programme that will improve food production by spreading new agricultural technologies in Ghana and Senegal.
The funds will finance technology exchange programmes, align national priorities with regional ones to increase regional cooperation in food technology generation, and support a greater push for technology adoption and dissemination, according to the Bank.
“The programme will help Ghana and Senegal boost agricultural production to cope with the increasing demand for food in the region,” said Abdoulaye Toure, the World Bank’s Task team leader for the project.
The World Bank believes that it is possible to increase production of key commodities that represent the basis of the West African food security system. “Adopting new and improved crop management practices can increase cereal crops by 30%; irrigated rice systems could benefit from yield increase by nearly 50%; and cassava yield can be raised more than 40%,” it said.
In a statement, Jamal Saghir, World Bank Director for Sustainable Development in the Africa Region said its support takes a resolved approach to making agriculture more productive and sustainable in West Africa.
By Pascal Kelvin Kudiabor
    

 

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Cement price rise was mere speculation

News Date: 24th May 2012

The two major cement production companies in Tema, GHACEM and Diamond Cement on Wednesday said they had not increased the market price of cement as speculated by a section of the public.

This followed an unannounced visit by Ms Hannah Tetteh to the two companies to get first hand information from management about the cause of the claimed increase in the price of the product.

At GHACEM, the Minister was informed that the market price was GH₵13.34 while Diamond Cement said the cost of the product was GH₵12.42.

The two companies attributed the problem to low production, which could not meet the demands of the public after power outage, but assured the minister that the situation had been rectified and that full production and supply would resume by next week.

GHACEM however stated that the company had not stopped production as the public was made to believe.

It expressed dismay at how retailers took advantage of the situation to increase the cost of the product to almost 50 per cent on the market, thereby creating the wrong impression about the exact situation on the ground.

According to GHACEM, a new plant is under construction to double the capacity of output, hoping to increase production by 1.5 million this year.

Mr Anthony Arden Boachie, Head of the Commercial Department at Diamond Cement said the company had resumed production, saying that it intended to increase production by 15 per cent.

He stated that Diamond Cement was working on another factory in the Eastern Region which is expected to commence production by the first quarter of the year.

Ms Tetteh advised all cement dealers to discontinue the price rises as the situation had been resolved and normal supply was to be restored by next week.

She expressed satisfaction at the responses by the two companies, adding that the purpose of her visit, which was to inform the public on the exact state of the situation, was achieved.

Source: GNA

Producer price index records marginal increase

The Production Price Index (PPI) increased by 15.8 percent between April 2011 and April 2012.

The increase represents a decrease in producer inflation of 0.4 percent relative to the rate recorded in March 2012 which stood at 16.2 percent.

Acting Deputy Government Statistician, Baah Wadieh told a news conference in Accra that the compilation was done from producer price changes as well as the annual year-on-year and monthly inflation rates for all industry as well as Mining and Quarrying, Manufacturing and Utilities for the last twelve months.

He however explained figures for the month of April 2012 are provisional and are subject to revision when additional data are available.

In April 2012, the producer price inflation in the mining and quarrying sector decreased by 7.2 percent over the March 2012 rate of 31.5 percent.

Manufacturing, which constitutes more than two thirds of total industry, increased to 16.2 percent from a rate of 15.5 percent in March while those of the utilities sector increased slightly by 0.1 percent from the March 2012 rate of 9.4 percent to 9.5 percent in April 2012.

From April 2011-2012, all the industry inflation rate decreased gradually from 24.3 percent in April 2011 to 12.0 percent in June 2011.

Subsequently, the rate increased consistently till it peaked at 19.6 percent in September, 2011 and then declined sharply to 16.4 percent in October 2011.

The producer inflation rate increased steadily over three months from the beginning of 2012, but dropped marginally in April at 15.8 percent.

The Head of Economic Statistics Division of the GSS, Ebo Duncan said government revenue will be affected by the figures, saying when revenue falls, taxes also reduce.

“Manufacturing and Utility, has direct impact on ordinary people in the sense that when the price of production increases, the retailer will also increase the price of goods and services and this in return affect Ghanaians”, he said.

Statement: Actis sells Accra Mall 
Actis, the pan-emerging markets private equity firm Wednesday confirmed the sale of its 85% shareholding in Accra Mall to South African commercial and retail property developer, Atterbury, and financial services group, Sanlam.

Accra Mall is Ghana’s first A-grade shopping and leisure centre, home to international brands such as Shoprite and Game, as well as Ghanaian brands including Kiki Clothing and Nallem.

This strategic trade sale demonstrates an increasing interest in Ghana by foreign investors and also reflects the acute demand for high quality real estate assets in sub-Saharan Africa.

Actis managed the development process, invested the equity and raised the debt to finance the project, working in partnership with renowned Ghanaian entrepreneurs, the Owusu-Akyaw family. The mall opened its doors in July 2008 fully let, and today attracts 135,000 shoppers each week.

David Morley, Head of Real Estate at Actis said: “This sale reflects the serious interest of quality institutional investors in sub-Saharan real estate assets. The development of Accra Mall came at a time when Ghanaians still sourced even basic goods from London and Johannesburg. Now they can buy products locally with pride. We are extremely pleased with what we have achieved here, in partnership with the Owusu-Akyaw family. Accra Mall’s success gives us great optimism for our upcoming projects in Accra, both our mixed use development in the Airport area, and One Airport Square.”

Alex Bruks of the Owusu-Akyaw family said: “My brother, the late Joseph Owusu-Akyaw, shared a vision with Actis: to create a focal point where Ghanaians could come to socialise, shop and relax, and to bring a new standard of retail to Ghana. It has been a rewarding journey and this mall stands as testament to our joint ambition and hard work. We are excited about this next chapter in the mall’s history.”

Actis is sub-Saharan Africa’s most experienced private equity real estate investor. Since 2004, Actis has developed ten institutional quality assets in seven countries in sub-Saharan Africa including other A-grade retail malls: Ikeja City Mall and The Palms in Lagos, and The Junction in Nairobi. Actis intends to initiate and develop real estate projects worth half a billion US dollars in sub-Saharan Africa over the next three years.

About Actis

Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$5bn funds under management. Combining the expertise of over 100 investment professionals in nine countries, Actis identifies investment opportunities in three areas: private equity, energy and real estate.

Actis has close to US$1.5 billion invested in 18 African countries and 32 investment professionals working in Africa, with offices in Cairo, Johannesburg, Lagos, London and Nairobi.

Actis is proud to actively and positively grow the value of those companies in which it invests and in so doing contribute to broader society.

Ghana hosts maiden Micro Insurance Conference
Ghana on Wednesday hosted the maiden International Micro insurance Conference to provide the industry with creative ideas and practical implementation to manage livelihood risks.

Learning sessions have therefore, been designed to provide international perspective on opportunities and challenges involved in providing micro insurance services, taking into consideration the current stage of development of the industry.

The event was organised by the National Insurance Commission of Ghana (NIC) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in partnership with three organisations engaged in the micro insurance sector.

They are Munich Re Foundation, a non-profit organisation founded by the global reinsurer Munich Re; Micro Insurance Network, an international network of multilateral agencies and the financial sector development initiative Making Finance Work for Africa.

Micro Insurance is a means of protecting households and small businesses in the informal sector from vulnerability caused by natural disasters or the sudden illness or death of a family member.

It is based on the premise that low-income customers need access to insurance products that are tailored to their needs.

Mrs Nyamikeh Kyiamah, Commissioner of Insurance, said micro insurance sought to reach out to customers that were not yet served by traditional insurance markets, and provide them with a valuable tool to manage their livelihood risks.

The NIC is actively spearheading the development of micro insurance in Ghana, particularly through the development of an appropriate regulatory framework for micro insurance products.

She said only 4.1 per cent of the total Ghanaian population held insurance policy in 2010 excluding public health insurance which stood at 1.89 in 20101.

Micro Insurance is a new and developing market, which is likely to see even more expansion in the near future.

Mrs Kyiamah said with support of the GIZ and other partners, NIC now had the capacity to handle micro insurance in Ghana in the areas of policy framework and legal review, actuarial capacity development, research and development and technical services.

She explained that these areas informed the learning sessions for the conference and provided a platform for networking for key stakeholders in the Ghanaian insurance sector engaged or interested in the development of micro insurance.

Mr Torsten Schlink, GIZ Programme Manager for Sustainable Economic Development expressed the hope that the conference would explain in detail polices and put in place strategies to push the industry forward.

Ms Claudia Huber, GIZ Advisor for Financial Systems Development responsible for the micro insurance component noted that its mission of making finance work in Africa was to establish a common platform for the harmonisation and facilitation of financial sector development and knowledge sharing in Africa.

The partnership brings together donor partners, African Governments, the private sector, and other financial sector stakeholders with the aim of unleashing the full potential of Africa's financial sector in order to drive economic development and reduce poverty across the continent.

Mr Dirk Reinhard, Vice Chairman, Munch Re Foundation said though the industry in Ghana was not doing badly more needed to be done to add value to the micro insurance market.

He said there was therefore, the need to explore, research to find solutions to the needs of the people and urged policy makers to create the enabling environment and the needed framework to give the industry a boost.

More than 150 senior representatives from insurance companies, brokers, distribution channels, and other interested parties are attending the two-day conference.

Renowned speakers from Ghana, Kenya, South Africa, Ethiopia, India, USA and various European countries will provide international perspectives on the challenges and opportunities involved in providing micro insurance services to customers in Ghana.

Source: GNA