Market Value of Equity: Market value of equity is the total cedi value of a company's equity and is also known as market capitalization. This measure of a company's value is calculated by multiplying the current stock price by the total number of outstanding shares. It always changing as these two input variables change. It is used to measure a company's size and helps investors diversify their investments across companies of different sizes and different levels of risk.

ETFs: GREAT DEAL FOR INVESTORS

An exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets, 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 Stock Exchange (GSE) and six other African stock exchanges.

The current share price of New Gold ETF (GLD) is GH¢250.00.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market tumbles 5.17 points over the week to close at 2,438.74; returns -0.21% YTD.

Market activity for the week fell 5.17 points to close at 2,438.74 points translating into a YTD return of -0.21%. The GSE Financial Stock Index (GSE-FSI) also lost 5.44 points to close at 2,047.15 points translating into a YTD return of -0.26%.

Eighteen (18) equities traded over the week, ending with four (4) stocks recording price increase and decline. NewGold (GLD) and TotalEnergies Marketing Ghana PLC. (TOTAL) were the gainers as they advanced by GH¢26.00 and GH¢0.01 to close at GH¢250.00 and GH¢4.01 per share whilst the decliners were Cal Bank PLC. (CAL) and Unilever Ghana PLC. (UNIL) as they shed off GH¢0.05 and GH¢0.38 to close at GH¢0.60 and GH¢3.50 per share respectively. As a result, Market Capitalization increased by GH¢21.44 million to close the trading week at GH¢64.61 billion.

A total of 264,276 shares cumulating to a value of GH¢430,743.65 were traded during the week. This week’s data shows an increase of 112.79% in volume traded and a decline of 79.27% in trade turnover. CAL emerged as the most traded stock during the week whilst EGH accounted for 53.43% of total value traded.

GSE EQUITY MARKET PERFORMANCE

KEY ECONOMIC INDICATORS

    Source: GSS, BOG, GBA

SBL RECOMMENDED PICKS

EQUITY UNDER REVIEW:

NEWGOLD (GLD)

    Source: Ghana Stock Exchange, SBL Research

     Source: Bloomberg

    Source: Bank of Ghana

    Source: Bloomberg, Bullion by Post, ICCO

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 inflation.

ANALYSTS

Godwin Kojo Odoom: Senior Research Analyst

Obed Owusu Sackey: Analyst

Wisdom Asigbetse: Analyst

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