Ghana Commercial Bank Rises to Record High Ahead of Oil Output
Ghana Commercial Bank Ltd., the West African nation’s biggest lender, rose to the highest on record as investors expect the start of oil production for export to boost lending and deposits.
The stock rose 27 pesewas, or 12 percent, to 2.60 cedis by the 1 p.m. close in Accra, the capital. It was the highest since at least February 1997.
“Investors believe GCB will benefit from increased cash deposits and lending to companies engaged in oil-related projects as oil production is due to start next week,” said Emmanuel Tsigbey, a stock broker with Renaissance Capital, in a phone interview from Accra. The bank’s profit will increase “by at least 15 percent” this year, he said.
Ghana will start commercial production of oil from its Jubilee field next week, operator Tullow Oil Plc said Nov. 29.
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