INVESTMENT TERM OF THE WEEK

Price-to-Earnings Ratio (P/E): The Price-to-Earnings ratio (P/E) is one of the most widely used tools by which investors and analysts determine a stock's relative valuation. The P/E ratio helps one determine whether a stock is overvalued or undervalued. A company's P/E can also be benchmarked against other stocks in the same industry or against the broader market.

EQUITY MARKET HIGHLIGHTS: GSE Composite Index increases by 180.29 points to return 47.21% YTD.
At the close of the week under review, the benchmark GSE Composite Index (GSE-CI) rallied as it gained 180.29 points to close at 2,858.17 translating into a YTD return of 47.21%. The GSE Financial Stock Index (GSE-FSI) also appreciated by 49.20 points over the week to close at 2,055.20 translating into a YTD return of 15.28%, making it the third weekly gain in a row. Seven equities recorded gains in the week, pushing the Market Capitalization up by GH¢1.89 billion to close trading at GH¢64.20 as FanMilk recorded a week’s gain of 28.83% to return an impressive 226.85% YTD.
A total of 14.12 million shares valued at GH¢18.32 million traded, representing a significant increase of 178.69% and 138.92% respectively compared to the previous week. Nineteen (19) stocks traded in the week as MTNGH accounted for 57.15% of the total value traded.

EQUITY UNDER REVIEW: FAN MILK PLC. (FML)
Share Price GH¢ 3.53
Price Change (YtD) 226.85%
Market Cap. (GH¢) GH¢ 410.21 million
Dividend Yield 0.00%
Earnings Per Share GH¢0.1188
Avg. Daily Trade Volumes 4,838
Value Traded (YtD) GH¢ 2,331,516.00

SUMMARY OF AUG. 2021 GFIM ACTIVITIES
GHANA FIXED INCOME MARKET
YEAR Jan.-Aug. 2021 Jan.-Aug. 2020 Change
VOLUME 140,964,497,583 65,251,333,273 116.03%
VALUE (GH¢) 146,623,859,868.39 66,558,222,713.51 120.29%
Source: Ghana Stock Exchange

GSE EQUITY MARKET PERFORMANCE

Indicator Current Week Previous Week Change
GSE-Composite Index 2,858.17 2,677.88 180.29pt
YTD (GSE-CI) 47.21% 37.92% 24.50%
GSE-Financial Stock Index 2,055.20 2,006.00 49.20pt
YTD (GSE-FSI) 15.28% 12.52% 22.04%
Market Cap. (GH¢ MN) 64,205.11 62,314.15 1,890.96
Volume Traded 14,118,056 5,065,892 178.69%
Value Traded (GH¢) 18,317,228.74 7,666,730.42 138.92%

TOP TRADED EQUITIES
Volume Value (GH¢)
9,114,266 10,468,136.38
4,166,074 3,082,895.26
507,373 3,962,583.13
132,600 447,061.00
70,614 120,043.80

MTN - 57.1 % of value traded

GAINERS & DECLINERS
Ticker Close Price (GH¢) Open Price (GH¢) Change Y-t-D Change
FML 3.53 2.74 28.83% 226.85%
MTNGH 1.24 1.12 10.71% 93.75%
SCB 20.35 18.50 10.00% 24.77%
EGL 2.30 2.10 9.52% 64.29%
GOIL 1.70 1.60 6.25% 13.33%
GLD 102.50 97.30 5.34% -6.73%
TOTAL 4.65 4.62 0.65% 64.31%
MAC 5.39 5.98 -9.87% -9.87%

SUMMARY OF AUG. 2021 EQUITY MARKET ACTIVITIES
EQUITIES
Indicator Jan.-Aug. 2021 Jan.-Aug. 2020 % Change
GSE-CI YtD CHANGE 41.66% -18.19%
VOLUME 370.19 M 378.65 M -2.23
VALUE (GH¢) 368.71 M 272.55 M 35.28
GSE-CI 2,750.37 1,846.59 48.94
MKT. CAP. (GH¢M) 62,904.96 52,568.06 19.66
ADVANCERS UNIL, ETI, FML, EGL, TOTAL, EGH, BOPP, CAL
DECLINERS SCB, MTNGH, CPC
Source: Ghana Stock Exchange

FIXED INCOME MARKET HIGHLIGHTS
At last week’s auction, a total of GH¢591.76 million was raised in 91-Day bills, GH¢119.01 million in 182-Day bills and GH¢97.30 million in 364-Day bills compared to GH¢454.83 million in 91-Day bills, GH¢696.38 million in 182-Day bills and GH¢916.78 million in 2-Year Note at the previous week’s auction.
91-Day bill fell by 0.019% to close at 12.47% Interest rate. 182-Day bills interest rate also decreased by 0.039% to 13.18% and the 364-Day bills interest rate improved by 0.077% to 16.21%.
The target for the next auction is GH¢1,475.00 million in 91- and 182-Day bills.

KEY ECONOMIC INDICATORS
Indicator Current Previous
Monetary Policy Rate September 2021 13.50% 13.50%
Real GDP Growth Q2 2021 3.90% 3.10%
Inflation August 2021 9.70% 9.00%
Reference rate September 2021 13.46% 13.51%
Source: GSS, BOG, GBA

GOG Treasuries 27th– 01st Oct. 2021 20th– 24th Sep. 2021 Change (%)
91-Day T-Bill 12.47% 12.49% -0.019%
182-Day T-Bill 13.18% 13.22% -0.039%
364-Day T-Bill 16.21% 16.14% 0.077%
2-Year Bond 17.50% 17.50% 0.00%
BOG Offer (GH¢ MN) 972.00 1,290.00
Dealers Tender (GH¢ MN) 809.72 2,077.99
Amount Raised (GH¢ MN) 808.07 2,067.99
Source: Bank of Ghana

CURRENCY MARKET
Interbank Average Rates
Currency Closing Week Previous Week Y-t-D Change
(GH¢) (GH¢) %
DOLLAR 5.8663 5.8643 -1.81%
POUND 7.9462 8.0159 -0.91%
EURO 6.7979 6.8680 3.92%
YEN 0.0529 0.0530 5.77%
YUAN 0.9105 0.9068 -3.09%
CFA FRANC 96.4310 95.5099 -3.77%
Source: Bank of Ghana

ANALYSTS
Godwin Kojo Odoom: Senior Research Analyst
Edna Awurama Fosua: Analyst
Nelson Cudjoe Kuagbedzi: Analyst

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