INVESTMENT TERM OF THE WEEK
Microcap: The term “microcap,” also known as micro-cap, is generally used for companies with a low market capitalization. Microcap stocks can either be newly listed companies with very few regulations or smaller companies with significant potential to become large-cap stocks in the future. Microcap stocks are usually traded over-the-counter, with low publicly available information, and are riskier to invest in than large-cap stocks.
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 Stock Exchange (GSE) and six other African stock exchanges.
The current share price of New Gold ETF (GLD) is GH¢163.50.
EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market rallies 163.97 points over the week to close at 2,560.49; returns -8.20% YTD.
Market activity for the week inched up by 163.97 points to close at 2,560.49 points translating into a YTD return of -8.20%. The GSE Financial Stock Index (GSE-FSI) however lost 7.50 points to close at 2,085.40 points translating into a YTD return of -3.09%. Twenty-three (23) equities traded over the week, ending with four (4) gainers and two (2) decliners. GLD, MTNGH, SOGEGH and CAL were the gainers as they gained GH¢6.30, GH¢0.15, GH¢0.04 and GH¢0.01 respectively whilst the decliners were GCB and ETI as they lost GH¢0.01 and GH¢0.01 respectively. As a result, Market Capitalization increased by GH¢1,974.78 million to close the trading week at GH¢64.80 billion.
A total of 4,660,329 shares valued at GH¢14,758,112.92 traded during the week. Compared with the previous trading week, this week’s data shows a 92.96% decline in volume traded and 70.86% decline in trade turnover NewGold (GLD) accounted for 53.80% of the total value traded whilst Scancom PLC. (MTNGH) recorded the most volumes traded.
GSE EQUITY MARKET PERFORMANCE
Indicator |
Current Week |
Previous Week |
Change |
2,560.49 |
2,396.52 |
163.97 pts |
|
YTD (GSE-CI) |
-8.20% |
-14.08% |
-41.76% |
GSE-Financial Stock Index |
2,085.40 |
2,092.90 |
-7.50 pts |
YTD (GSE-FSI) |
-3.09% |
-2.74% |
12.77% |
Market Cap. (GH¢ MN) |
64,802.35 |
62,827.57 |
1,974.78 |
Volume Traded |
4,660,329 |
66,164,780 |
-92.96% |
Value Traded (GH¢) |
14,758,112.92 |
50,649,299.41 |
-70.86% |
TOP TRADED EQUITIES |
||
Ticker |
Volume |
Value (GH¢) |
MTNGH |
2,368,284 |
2,083,469.48 |
CAL |
947,766 |
720,110.08 |
SOGEGH |
475,572 |
469,751.28 |
ETI |
313,121 |
43,836.94 |
ASG |
240,282 |
2,131,301.34 |
KEY ECONOMIC INDICATORS
Indicator |
Current |
Previous |
Monetary Policy Rate |
July 2022 19.00% |
19.00% |
Real GDP Growth |
March 2022 3.3% |
5.4% |
Inflation |
July 2022 31.7% |
29.8% |
Source: GSS, BOG, GBA
GAINERS & DECLINERS |
||||
Ticker |
Close Price (GH¢) |
Open Price (GH¢) |
Price Change |
Y-t-D Change |
GLD |
163.50 |
157.20 |
6.30 |
50.55% |
MTNGH |
0.95 |
0.80 |
0.15 |
-14.41% |
SOGEGH |
1.00 |
0.96 |
0.04 |
-16.67% |
CAL |
0.76 |
0.75 |
0.01 |
-12.64% |
GCB |
4.99 |
5.00 |
-0.01 |
-4.77% |
ETI |
0.14 |
0.15 |
-0.01 |
0.00% |
SBL RECOMMENDED PICKS
Equity |
Price |
Opinion |
Market Outlook |
MTN GHANA |
GH¢ 0.95 |
Strong 2022 Q1 Financials |
Higher Ask Price |
BOPP |
GH¢ 6.00 |
Strong 2022 Q1 Financials |
Low offers |
CAL BANK |
GH¢ 0.76 |
Strong 2022 Q1 Financials |
Available offers |
ECOBANK |
GH¢ 6.85 |
Strong 2022 Q1 Financials |
Bargain bids |
SOGEGH |
GH¢ 1.00 |
Strong 2022 Q1 Financials |
Low demand |
FANMILK |
GH¢ 3.00 |
Positive Sentiment |
Low demand |
EQUITY UNDER REVIEW:
ACCESS BANK GHANA PLC. (ACCESS)
Share Price |
GH¢3.00 |
Price Change (YtD) |
-4.76% |
Market Cap. (GH¢) |
GH¢521.84 billion |
Dividend Yield |
26.42% |
Earnings Per Share |
GH¢2.3230 |
Avg. Daily Volumes |
2,280 |
Value Traded (YtD) |
GH¢1,711,068 |
SUMMARY OF JULY 2022 EQUITY MARKET ACTIVITIES |
|||
Indicator |
July 2022 |
July 2021 |
% Change |
GSE-CI YTD CHANGE |
-9.70% |
39.95% |
- |
GSE-CI |
2,518.86 |
2,717.30 |
-7.30% |
GSE-FSI YTD CHANGE |
-2.24% |
6.02% |
- |
GSE-FSI |
2,103.58 |
1,890.15 |
11.29% |
VOLUME |
64.33 M |
22.42 M |
186.89% |
VALUE (GH¢) |
61.49 M |
33.67 M |
82.65% |
MKT. CAP. (GH¢M) |
64,383.34 |
62,248.75 |
3.43% |
ADVANCERS & DECLINERS |
GLD, EGL, GGBL, SIC, TBL, POP | GCB, GOIL, CAL, ACCESS, MTNGH, SOGEGH |
Source: Ghana Stock Exchange, SBL Research
GSE AGAINST SELECTED AFRICAN STOCK MARKETS |
|||
Country |
Current Level |
|
YTD |
(Ghana) GSE-CI |
2,560.49 |
|
-8.20% |
(Botswana) BGSMDC |
7,271.32 |
|
1.29% |
(Egypt) EGX-30 |
9,988.84 |
|
13.97% |
(Kenya) NSE ASI |
146.88 |
|
9.57% |
(Nigeria) NGSE ASI |
49,664.07 |
|
-4.89% |
(South Africa) JSE ASI |
70,731.31 |
|
8.67% |
(WAEMU) BRVM |
208.43 |
|
0.55% |
Source: Bloomberg
CURRENCY MARKET |
|
||
Currency |
Closing Week |
Previous Week |
YTD Change |
|
(GH¢) |
(GH¢) |
% |
|
8.0571 |
8.0001 |
-25.46% |
|
9.7841 |
9.6341 |
-16.94% |
|
8.2710 |
8.1243 |
-17.44% |
YEN |
0.0604 |
0.0591 |
-13.50% |
YUAN |
1.1972 |
1.1825 |
-21.08% |
CFA FRANC |
79.3086 |
80.7407 |
21.13% |
Source: Bank of Ghana
COMMODITIES MARKET |
|
||
Commodity |
Closing Week |
Previous Week |
YTD (%) |
BRENT CRUDE OIL (US$/bbl.) |
98.09 |
95.41 |
23.98% |
GOLD (US$/oz) |
1,799.26 |
1,774.38 |
-1.40% |
COCOA (US$/MT) |
2,315.45 |
2,268.48 |
-5.50% |
Source: Bloomberg, Bullion by Post, ICCO
JUSTIFICATIONS FOR INCLUDING STOCKS IN A PORTFOLIO
ANALYSTS
Godwin Kojo Odoom: Senior Research Analyst
Obed Owusu Sackey: Analyst
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