Reverse Stock Split: A reverse stock split is a type of corporate action that consolidates the number of existing shares of stock into fewer (higher-priced) shares. A reverse stock split is also known as a stock consolidation, stock merge, or share rollback and is the opposite of a stock split, where a share is divided (split) into multiple parts. A reverse stock split does not directly impact a company's value (only its stock price).

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¢217.80.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market declines by 0.25 points over the week to close at 2,443.91; returns -12.38% YTD.

At the close of trading last week, the Ghana Stock Exchange Composite Index (GSE-CI) closed lower losing 0.25 points to close at 2,443.91 points translating into a YTD return of -12.38%. The GSE Financial Stock Index (GSE-FSI) also lost 0.46 points to close at 2,052.59 points translating into a YTD return of -4.61%.

Twenty-two (22) equities traded over the week, ending with two (2) stocks each recording a price increase or a price decline. The best performer of this week’s session was NewGold (GLD) as it gained GH¢5.80 to close at GH¢217.80 per share. GCB Bank PLC. (GCB) was the sole decliner as it lost GH¢0.01 to close at GH¢1.73 per share. Market Capitalization closed the trading week at GH¢64.51 billion.

A total of 603,656 shares cumulating to a value of GH¢2,986,196.83 were traded during the week. This week’s data shows a decline of 96.19% and 85.47% in volume traded and trade turnover respectively. Scancom PLC. (MTNGH) emerged as the most traded stock during the week whilst GLD accounting for 66.44% of total value 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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