Dividend Yield: The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price. The reciprocal of the dividend yield is the price/dividend ratio.

ETFs: GREAT DEAL FOR INVESTORS

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock.

New Gold ETF (GLD), an exchange traded fund sponsored by Absa Capital, offers the opportunity to invest in gold bullion. The company issues listed instruments (structured as debentures) backed by physical gold. Each debenture is approximately equivalent to 1/100 ounces of gold bullion, which is held with a secure depository on behalf of investors. The debentures are listed on the Ghana (GSE) and six other African stock exchanges.

The current share price of New Gold ETF (GLD) is GH¢108.60. GLD this week closed at GH¢108.60 per share. The price has been stable since November 2, 2021, recording a 4.2% gain over its previous closing price of GH¢104.25 on November 1, 2021.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market gained 36.12 points over the week to close at 2,730.59; returns -2.11% YTD.

The benchmark GSE Composite Index (GSE-CI) at the close of the week gained 36.12 points to close at 2,730.59 translating into a YTD return of -2.11%. The GSE Financial Stock Index (GSE-FSI) also gained 1.62 points to close the week at 2,116.98 translating into a YTD return of -1.62%. Four (4) equities recorded price increases against one (1) decliner, with SIC Insurance Ltd. (SIC) recording a 100% YTD return at close of trading for the week.

Market Capitalization recorded a drop of GH¢378.08 million to close the trading week at GH¢63.24 billion.

A total of 43.8 million shares valued at GH¢45.4 million traded during the week compared to 8.2 million shares valued at GH¢2.9 million which traded the previous week.

 Scancom PLC. (MTNGH) recorded the most trades per value over the week as it accounted for 93.94% of the total value traded.

GSE EQUITY MARKET PERFORMANCE

KEY ECONOMIC INDICATORS

    Source: GSS, BOG, GBA

SBL RECOMMENDED PICKS

EQUITY UNDER REVIEW:

SCANCOM PLC. (MTNGH)

    Source: Ghana Stock Exchange, SBL Research

     Source: Bloomberg

    Source: Bank of Ghana

    Source: Bloomberg, Bullion by Post, ICCO

FULL YEAR 2021 FINANCIAL STATEMENT HIGHLIGHTS

GCB BANK PLC.                                                            

Current Price: GH¢5.20

Recommendation: BUY         

Ticker: GCB  

Industry: Banking/Financial

P/E Ratio: 2.4x

GCB Bank PLC. released financial results for the full year ended 31st December, 2021 on 04th March, 2022 as highlighted above. The Bank for a while has been undervalued on the market with current Price to Earnings ratio of 2.4x making it an even more attractive investment. Results is an improvement on Q3 2021 and Q2 2021 financials. Net Interest Income increased by 25.59% to GH¢1.9 Billion translating into a Profit after Tax growth of 28.49% and Earnings per share growth of 28.57%. Although GCB’s NPL increased to 15.98% from 8.71% in 2020, it is a reduction from the 20.5% recorded in Q3 2021 and 20.7% as at Half Year 2021. GCB still remains in the top two banks with customer deposits, which saw a growth of 15.95% to GH¢13.15 Billion from GH¢11.35 Billion in

JUSTIFICATIONS FOR INCLUDING STOCKS IN A PORTFOLIO

• Typically, stocks outperform all other investment options over a ten-year period making them a must for long term portfolio.
• They are excellent vehicles for retirement.

Except for a few short periods, stocks have consistently outpaced the rate of

ANALYSTS

Godwin Kojo Odoom: Senior Research Analyst

Obed Owusu Sackey: Analyst

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