Odd Lot: An odd lot is an order amount for a security that is less than the normal unit of trading for that particular asset. Trading commissions for odd lots are generally higher on a percentage basis than those for standard lots since most brokerage firms have a fixed minimum commission level for undertaking such transactions. Odd lots tend to emerge in a portfolio as a result of a company announcing a reverse stock split, or due to dividend reinvestment plans.

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¢165.00

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market tumbles 11.19 points over the week to close at 2,449.43; returns -12.19% YTD.

Market activity for the week fell 11.19 points to close at 2,449.43 points translating into a YTD return of -12.19%. The GSE Financial Stock Index (GSE-FSI) also lost 14.92 points to close at 2,061.92 points translating into a YTD return of -4.18%. Twenty-five (25) equities traded over the week, ending with one (1) gainer and four (4) decliners. TBL was the sole gainer as it advanced by GH¢0.04 to close at GH¢0.80 per share whilst the decliners were GOIL, CAL, UNIL and GLD as they shed off GH¢0.01, GH¢0.15, GH¢0.43 and GH¢37.71 to close at GH¢1.73, GH¢0.65, GH¢3.88 and GH¢165.00 per share respectively. As a result, Market Capitalization decreased by GH¢226.14 million to close the trading week at GH¢64.41 billion.

A total of 11,421,165 shares cumulating to a value of GH¢99,595,145.24 were traded during the week. This week’s data shows a 2541.37% increase in volume traded and an 383.84% increase in trade turnover respectively. MTNGH emerged as the most traded stock during the week whilst GLD accounting for 90.31% 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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