Hold: Hold is an analyst's recommendation to neither buy nor sell a security. A company with a hold recommendation generally is expected to perform with the market or at the same pace as comparable companies. A hold recommendation can be thought of as holding what you have and holding off on buying more of that particular stock. A hold is one of the three basic investment recommendations given by professional financial analysts.

ETFs: GREAT DEAL FOR INVESTORS

An exchange-traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets, 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¢166.50.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market slips 11.69 points over the week to close at 2,488.21; returns -10.80% YTD.

Market activity for the week lost 11.69 points to close at 2,488.21 points translating into a YTD return of -10.80%. The GSE Financial Stock Index (GSE-FSI) also lost 17.69 points to close at 2,055.64 points translating into a YTD return of -4.47%.

Nineteen (19) equities traded over the week, ending with two (2) gainers and four (4) decliners. ACCESS and CAL were the gainers as they gained GH¢0.30 and GH¢0.06 to close trading at GH¢4.00 and GH¢0.80 respectively. SOGEGH, EGH, TOTAL and GCB were the decliners as they lost GH¢0.09, GH¢0.15, GH¢0.18 and GH¢.030 to close trading at GH¢1.00, GH¢6.60, GH¢4.00 and GH¢3.70 respectively. As a result, Market Capitalization decreased by GH¢122.07 million to close the trading week at GH¢64.28 billion.

A total of 953,819 shares valued at GH¢1,460,375.70 were traded during the week. Compared with the previous trading week, this week’s data shows a 91.82% decrease in volume traded and an 87.92% decrease in trade turnover. Scancom PLC. accounted for 42.78% of the total value traded and recorded the most volumes traded.

GSE EQUITY MARKET PERFORMANCE

KEY ECONOMIC INDICATORS

    Source: GSS, BOG, GBA

SBL RECOMMENDED PICKS

EQUITY UNDER REVIEW:

NewGold. (GLD)

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

Wisdom Asigbetse: Analyst

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