Stock split: A stock split is when a company divides its existing shares into multiple new shares. This type of corporate action typically occurs when a company's stock price has reached a level that is too high for new investors, making it difficult for them to buy shares. A stock split can also increase the liquidity of a company's stock.

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¢171.00.

EQUITY MARKET  HIGHLIGHTS: The Ghana Stock Market slumps 56.56 points over the week to close at 2,476.48; returns -11.22% YTD.

Market activity for the week inched downwards by 56.56 points to close at 2,476.48 points translating into a YTD return of -11.22%. The GSE Financial Stock Index (GSE-FSI) also lost 17.13 points to close at 2,018.25 points translating into a YTD return of -6.21%. Nineteen (19) equities traded over the week, ending with three (3) decliners. SIC, MTNGH and EGH were the decliners as they lost GH¢0.01, GH¢0.04 and GH¢0.30 respectively to close trading at GH¢0.31, GH¢0.91 and GH¢6.50. As a result, Market Capitalization decreased by GH¢576.28 million to close the trading week at GH¢63.78 billion.

A total of 1,944,061 shares valued at GH¢1,679,680.70 traded during the week. Compared with the previous trading week, this week’s data shows a 130.59% improvement in volume traded and 96.02% decline in trade turnover. Scancom PLC. (MTNGH) accounted for 52.20% 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:

ACCESS BANK GHANA PLC. (ACCESS)

    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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