June 14 (Bloomberg) -- SG-SSB Ltd., the Ghanaian unit of Societe Generale SA, gained the most in almost seven months as investors bet the company’s earnings will increase after it bought Treasury bills with higher yields.
The stock gained 7.9 percent to 41 pesewas by the close in Accra, the capital, the biggest increase since Nov. 23.
“The shares were bought by non-resident institutional investors that have confidence in the bank’s future earnings ability,” Anastacia Arko, a stock analyst at Databank Financial Services Ltd. in Accra, said by phone. “We expect the bank to deliver better second-quarter results as it rightly invested in government securities to take advantage of rising yields,” she said, declining to give a specific forecast.
Ghana’s central bank has been accepting higher yields on its benchmark 91-day Treasury bill yield in a bid to remove excess cedis from the local currency market. The rate was 20.2 percent at the most recent auction on June 8 and may climb to 25 percent by the end of the year, Databank’s head of asset management, Daniel Ogbarmey Tetteh, said on June 11.
Arko said SG-SSB’s “fundamentals” are strong and the stock price may rise to as much as 63 pesewas by the end of year.
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