Beta: Beta is a measure of the volatility (or systematic risk) of a security (or portfolio) compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks). For beta to be meaningful, the stock should be related to the benchmark that is used in the calculation.

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 gained 0.76 points over the week to close at 2,551.74; returns -8.52% YTD.

Market activity for the week increased by 0.76 points to close at 2,551.74 translating into a YTD return of -8.52%. The GSE Financial Stock Index (GSE-FSI) also gained 1.39 points to close the week at 2,187.03 translating into a YTD return of 1.63%. Twenty (20) equities traded over the week, ending with only one (1) gainer. Trust Bank Gambia Ltd. (TBL) was the sole gainer as it gained GH¢0.04 to close at GH¢0.44 representing a YTD return of 29.41%.

Market Capitalization decreased by GH¢8.00 million to close the trading week at GH¢62.24 billion.

A total of 2.43 million shares valued at GH¢2.17 million traded during the week compared to 10.55 million shares valued at GH¢9.57 million which traded the previous week. Compared with the previous trading week,this week’s data shows a 76.97% decline in volume traded and 77.28% decline in trade turnover. Scancom PLC. (MTNGH) recorded lion’s share of trades as it recorded the most volumes and accounted for 88.65% 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

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