Stock Market Crash: A stock market crash is a rapid and often unanticipated drop in stock prices. A stock market crash can be a side effect of a major catastrophic event, economic crisis, or the collapse of a long-term speculative bubble. Reactionary public panic about a stock market crash can also be a major contributor to it, inducing panic selling that depresses prices even further.

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¢261.40.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market falls 10.82 points over the week to close at 2,449.49; returns -12.18% YTD.

Market activity for the week declined by 10.82 points to close at 2,449.49 points translating into a YTD return of -12.18%. The GSE Financial Stock Index (GSE-FSI) however gained 1.74 points to close at 2,071.63 points translating into a YTD return of -3.73%.

Twenty-three (23) equities traded over the week, ending with two (2) gainers and one (1) decliner. NewGold (GLD) and Trust Bank Gambia Ltd. (TBL) were the gainers as they gained GH¢43.20 and GH¢0.05 to close trading at GH¢261.40 and GH¢0.60 respectively. Scancom PLC. (MTNGH) was the sole decliner as it lost GH¢0.01 to close trading at GH¢0.87. Market Capitalization increased by GH¢12.38 million to close the trading week at GH¢64.69 billion.

A total of 512,787 shares valued at GH¢8,720,701.69 were traded during the week. Compared with the previous trading week, this week’s data shows a decline of 0.79% and 43.02% respectively in volume traded and trade turnover. MTNGH emerged as the most traded stock at the close of trading session, accounting for 50.77% of overall trade volume, whilst GLD accounted for 89.43% of the total value traded.

GSE EQUITY MARKET PERFORMANCE

TOP TRADED EQUITIES

KEY ECONOMIC INDICATORS

    Source: GSS, BOG, GBA

SBL RECOMMENDED PICKS

EQUITY UNDER REVIEW:

NEWGOLD (GLD)

    Source: Ghana Stock Exchange, SBL Researchsss

     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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