Alpha: Alpha (α) is a term used in investing to describe an investment strategy's ability to beat the market, or its edge. Alpha is often referred to as excess return or abnormal rate of return, which refers to the idea that markets are efficient, and so there is no way to systematically earn returns that exceed the broad market as a whole.

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¢145.00.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market lost 3.81 points over the week to close at 2,550.98; returns -8.55% YTD.

Market activity for the week decreased by 3.81 points to close at 2,550.98 translating into a YTD return of -8.55%. The GSE Financial Stock Index (GSE-FSI) also decreased by 6.93 points to close the week at 2,185.64 translating into a YTD return of 1.57%. Twenty-five (25) equities traded over the week, ending with two (2) gainers and one (1) decliner. GLD and SIC were the gainers as they gained GH¢0.90 and GH¢0.02 to close at GH¢145.00 and GH¢0.30 respectively whilst CAL was the sole decliner as it lost GH¢0.07 to close at GH¢0.80.

Market Capitalization decreased by GH¢39.90 million to close the trading week at GH¢62.24 billion.

A total of 10.55 million shares valued at GH¢9.57 million traded during the week compared to 4.80 million shares valued at GH¢4.29 million which traded the previous week. Scancom PLC. (MTNGH) recorded lion’s share of trades as it recorded the most volumes and accounted for 81.73% 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 inflation.

ANALYSTS

Godwin Kojo Odoom: Senior Research Analyst

Obed Owusu Sackey: Analyst

Disclaimer - SIC Brokerage and its employees do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own Investment advisor and conducting his or her own research and due diligence. SIC Brokerage disclaims any and all liabilities in the event that any Information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.