Volatility: Volatility is a statistical measure of the dispersion of returns for a given security or market index. In most cases, the higher the volatility, the riskier the security. Volatility is often measured as either the standard deviation or variance between returns from that same security or market index.

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 closes red as it slips by 5.62 points over the week to close at 2,738.63; returns -1.82% YTD.

The benchmark GSE Composite Index (GSE-CI) at the close of the week dropped 5.62 points to close at 2,738.63 translating into a YTD return of -1.82%. The GSE Financial Stock Index (GSE-FSI) however gained 25.52 points to close the week at 2,167.29 translating into a YTD return of 0.72%. Three (3) equities recorded price increases against three (3) decliners, with SIC Insurance Ltd. (SIC) recording a 150.00% YTD return at close of trading for the week.

Market Capitalization recorded an increase of GH¢272.19 million to close the trading week at GH¢63.98 billion.

A total of 18.58 million shares valued at GH¢24.30 million traded during the week compared to 0.95 million shares valued at GH¢1.38 million which traded the previous week.

 Scancom PLC. (MTNGH) recorded the most trades per value over the week as it accounted for 63.22% 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

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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