INVESTMENT TERM OF THE WEEK
Put Option: A put option is a contract giving the option buyer the right, but not the obligation, to sell – or sell short – a specified amount of an underlying security at a predetermined price within a specified time frame.
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 13.66 points over the week to close at 2,744.25; returns -1.62% YTD.
The benchmark GSE Composite Index (GSE-CI) at the close of the week gained 13.66 points to close at 2,744.25 translating into a YTD return of -1.62%. The GSE Financial Stock Index (GSE-FSI) also gained 24.79 points to close the week at 2,141.77 translating into a YTD return of -0.47%. Two (2) equities recorded price increases against two (2) decliners, with SIC Insurance Ltd. (SIC) recording a 137.50% YTD return at close of trading for the week.
Market Capitalization recorded an increase of GH¢473.87 million to close the trading week at GH¢63.71 billion.
A total of 1.9 million shares valued at GH¢2.1 million traded during the week compared to 43.8 million shares valued at GH¢45.4 million which traded the previous week.
Scancom PLC. (MTNGH) recorded the most trades per value over the week as it accounted for 40.32% of the total value traded.
GSE EQUITY MARKET PERFORMANCE
Indicator |
Current Week |
Previous Week |
Change |
2,744.25 |
2,730.59 |
13.66 pts |
|
YTD (GSE-CI) |
-1.62% |
-2.11% |
-23.22% |
GSE-Financial Stock Index |
2,141.77 |
2,116.98 |
24.79 pts |
YTD (GSE-FSI) |
-0.47% |
-1.62% |
-70.99% |
Market Cap. (GH¢ MN) |
63,713.16 |
63,239.29 |
473.87 |
Volume Traded |
953,820 |
43,849,420 |
-97.82% |
Value Traded (GH¢) |
1,389,780.12 |
45,434,232 |
-96.94% |
TOP TRADED EQUITIES
Ticker |
Volume |
Value (GH¢) |
MTNGH |
800,069 |
864,015.72 |
ETI |
494,692 |
70,373.94 |
SIC |
158,667 |
28,984.73 |
ACCESS |
146,243 |
277,861.70 |
SOGEGH |
80,360 |
95,932.00 |
GAINERS
Ticker |
Close Price (GH¢) |
Open Price (GH¢) |
Change |
Y-t-D Change |
ETI |
0.15 |
0.13 |
15.38% |
7.14% |
SIC |
0.19 |
0.17 |
11.76% |
137.50% |
DECLINERS
Ticker |
Close Price (GH¢) |
Open Price (GH¢) |
Change |
Y-t-D Change |
SOGEGH |
1.19 |
1.20 |
-0.83% |
-0.83% |
CAL |
0.84 |
0.85 |
-1.18% |
-3.45% |
KEY ECONOMIC INDICATORS
Indicator |
Current |
Previous |
Monetary Policy Rate |
January 2022 14.50% |
14.50% |
Real GDP Growth |
Q3 2021 6.60% |
3.90% |
Inflation |
February 2022 15.7% |
12.6% |
Source: GSS, BOG, GBA
SBL RECOMMENDED PICKS
Equity |
Price |
Opinion |
Market Outlook |
MTN GHANA |
GH¢ 1.08 |
Strong 2021 FY Financials |
Higher Ask Price |
BOPP |
GH¢ 6.00 |
Strong 2021 FY Financials |
Low demand |
CAL BANK |
GH¢ 0.84 |
Strong 2021 FY Financials |
Improving bids |
ECOBANK |
GH¢ 7.60 |
Strong 2021 Q3 Financials |
Bargain bids |
SOGEGH |
GH¢ 1.19 |
Strong 2021 FY Financials |
Low demand |
FANMILK |
GH¢ 3.00 |
Positive Sentiment |
Profit taking |
EQUITY UNDER REVIEW:
SCANCOM PLC. (MTNGH)
Share Price |
GH¢1.08 |
Price Change (YtD) |
-2.70% |
Market Cap. (GH¢) |
GH¢13.27 billion |
Dividend Yield |
0.00% |
Earnings Per Share |
GH¢0.1633 |
Avg. Daily Volumes |
1,593,475 |
Value Traded (YtD) |
GH¢ 91,202,739 |
SUMMARY OF FEB. 2022 EQUITY MARKET ACTIVITIES |
|||
Indicator |
February 2022 |
February 2021 |
% Change |
GSE-CI YTD CHANGE |
-2.11% |
13.36% |
- |
GSE-CI |
2,730.59 |
2,200.92 |
24.07 |
GSE-FSI YTD CHANGE |
-1.62% |
5.08% |
- |
GSE-FSI |
2,116.98 |
1,873.31 |
13.01 |
VOLUME |
31.11 M |
44.50 M |
-30.10 |
VALUE (GH¢) |
26.43 M |
35.23 M |
-24.97 |
MKT. CAP. (GH¢M) |
62,881.97 |
57,152.18 |
10.03 |
ADVANCERS & DECLINERS |
SIC, GGBL, EGL, CAL | GCB, MTNGH, BOPP, ACCESS |
Source: Ghana Stock Exchange, SBL Research
GSE AGAINST SELECTED AFRICAN STOCK MARKETS |
|||
Country |
Current Level |
|
YTD |
(Ghana) GSE-CI |
2,744.25 |
|
-1.62% |
(Botswana) BGSMDC |
7,204.33 |
|
2.78% |
(Egypt) EGX-30 |
10,453.59 |
|
-12.52% |
(Kenya) NSE ASI |
159.05 |
|
-4.45% |
(Nigeria) NGSE ASI |
47,437.48 |
|
11.05% |
(South Africa) JSE ASI |
73,685.89 |
|
2.96% |
(WAEMU) BRVM |
216.15 |
|
6.86% |
Source: Bloomberg
CURRENCY MARKET |
|
||
Currency |
Closing Week |
Previous Week |
YTD Change |
|
(GH¢) |
(GH¢) |
% |
|
7.0200 |
7.0019 |
-14.44% |
|
9.2215 |
9.2527 |
-11.87% |
|
7.7352 |
7.6405 |
-11.73% |
YEN |
0.0605 |
0.0609 |
-13.65% |
YUAN |
1.1103 |
1.1083 |
-14.91% |
CFA FRANC |
84.8021 |
85.8527 |
13.28% |
Source: Bank of Ghana
COMMODITIES MARKET |
|
||
Commodity |
Closing Week |
Previous Week |
YTD (%) |
BRENT CRUDE OIL (US$/bbl.) |
113.71 |
116.07 |
43.72% |
GOLD (US$/oz) |
1978.64 |
1,961.73 |
8.43% |
COCOA (US$/MT) |
2,528.14 |
2,434.35 |
3.19% |
Source: Bloomberg, Bullion by Post, ICCO
JUSTIFICATIONS FOR INCLUDING STOCKS IN A PORTFOLIO
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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