info@businessghana.com
INVESTMENT TERM OF THE WEEK
Dividend Yield: The dividend yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price. The reciprocal of the dividend yield is the price/dividend ratio.
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¢108.60. GLD this week closed at GH¢108.60 per share. The price has been stable since November 2, 2021, recording a 4.2% gain over its previous closing price of GH¢104.25 on November 1, 2021.
EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market gained 1.36 points over the week to close at 2,694.47; returns -3.40% YTD.
The benchmark GSE Composite Index (GSE-CI) at the close of the week gained 1.36 points to close at 2,694.47 translating into a YTD return of -3.40%. The GSE Financial Stock Index (GSE-FSI) also gained 2.46 points to close the week at 2,115.36 translating into a YTD return of -1.70%. Two (2) equities recorded price increase whereas two (2) equities also recorded decline in prices for the week under review.
Market Capitalization recorded a drop of GH¢479.23 million to close the trading week at GH¢62.86 billion.
A total of 8.2 million shares valued at GH¢2.95 million traded during the week compared to 4.7 million shares valued at GH¢3.92 million which traded the previous week.
SIC Insurance Company Ltd. (SIC) recorded the most trades per value over the week as it accounted for 28.30% of the total value
GSE EQUITY MARKET PERFORMANCE
|
Indicator |
Current Week |
Previous Week |
Change |
|
2,694.47 |
2,693.11 |
1.36 pts |
|
|
YTD (GSE-CI) |
-3.40% |
-3.45% |
-1.45% |
|
GSE-Financial Stock Index |
2,115.36 |
2,112.90 |
2.46 pts |
|
YTD (GSE-FSI) |
-1.70% |
-1.81% |
-6.08% |
|
Market Cap. (GH¢ MN) |
62,861.21 |
63,340.44 |
-479.23 |
|
Volume Traded |
8,224,838 |
4,790,054 |
71.71% |
|
Value Traded (GH¢) |
2,952,720.00 |
3,927,226.53 |
-24.81% |
|
TOP TRADED EQUITIES |
||
|
Ticker |
Volume |
Value (GH¢) |
|
SIC |
6,781,794 |
835,486.00 |
|
MTNGH |
711,283 |
746,847.00 |
|
CAL |
330,622 |
273,368.00 |
|
PBC |
119,700 |
2,394.00 |
|
EGL |
102,065 |
336,437.00 |
|
GAINERS |
||||
|
Ticker |
Close Price (GH¢) |
Open Price (GH¢) |
Change |
Y-t-D Change |
|
SIC |
0.14 |
0.10 |
40.00% |
75.00% |
|
EGL |
3.30 |
3.00 |
10.00% |
18.28% |
|
DECLINERS |
||||
|
Ticker |
Close Price (GH¢) |
Open Price (GH¢) |
Change |
Y-t-D Change |
|
CAL |
0.82 |
0.85 |
-3.53% |
-5.75% |
|
ACCESS |
2.15 |
2.33 |
-7.73% |
-31.75% |
KEY ECONOMIC INDICATORS
|
Indicator |
Current |
Previous |
|
Monetary Policy Rate |
January 2022 14.50% |
14.50% |
|
Real GDP Growth |
Q3 2021 6.60% |
3.90% |
|
Inflation |
January 2022 13.9% |
12.6% |
Source: GSS, BOG, GBA
SBL RECOMMENDED PICKS
|
Equity |
Price |
Opinion |
Market Outlook |
|
MTN GHANA |
GH¢ 1.05 |
Strong 2021 Q3 Financials |
Higher Ask Price |
|
BOPP |
GH¢ 6.00 |
Strong 2021 FY Financials |
Low demand |
|
CAL BANK |
GH¢ 0.82 |
Strong 2021 FY Financials |
Improving bids |
|
ECOBANK |
GH¢ 7.60 |
Strong 2021 Q3 Financials |
Bargain bids |
|
SOGEGH |
GH¢ 1.20 |
Strong 2021 FY Financials |
Low demand |
|
FANMILK |
GH¢ 3.00 |
Positive Sentiment |
Profit taking |
EQUITY UNDER REVIEW:
SCANCOM PLC. (MTNGH)
|
Share Price |
GH¢1.05 |
|
Price Change (YtD) |
-2.70% |
|
Market Cap. (GH¢) |
GH¢13.27 billion |
|
Dividend Yield |
0.00% |
|
Earnings Per Share |
GH¢0.1532 |
|
Avg. Daily Volumes |
1,508,204 |
|
Value Traded (YtD) |
GH¢ 47,657,886 |
|
SUMMARY OF JAN. 2022 EQUITY MARKET ACTIVITIES |
|||
|
Indicator |
January 2022 |
January 2021 |
% Change |
|
GSE-CI YTD CHANGE |
-0.81% |
4.41% |
- |
|
GSE-CI |
2,766.80 |
2,027.12 |
36.49 |
|
GSE-FSI YTD CHANGE |
-0.93% |
4.41% |
- |
|
GSE-FSI |
2,131.93 |
1,861.45 |
14.53 |
|
VOLUME |
34.58 M |
98.73 M |
-64.98 |
|
VALUE (GH¢) |
38.28 M |
69.72 M |
-45.09 |
|
MKT. CAP. (GH¢M) |
64,097.80 |
55,301.66 |
15.91 |
|
ADVANCERS & DECLINERS |
TBL, EGL. CAL, ETI, ACCESS, FML. |
||
Source: Ghana Stock Exchange
|
GSE AGAINST SELECTED AFRICAN STOCK MARKETS |
|||
|
Country |
Current Level |
|
YTD |
|
|
2,694.47 |
|
-3.40% |
|
|
7,481.11 |
|
6.73% |
|
|
10,890.88 |
|
-0.09 |
|
|
160.03 |
|
-3.86% |
|
|
47,328.42 |
|
10.80% |
|
|
74,205.69 |
|
3.68% |
|
|
217.13 |
|
7.34% |
Source: Bloomberg
|
CURRENCY MARKET |
|
||
|
Currency |
Closing Week |
Previous Week |
YTD Change |
|
|
(GH¢) |
(GH¢) |
% |
|
|
6.6004 |
6.4227 |
-9.00% |
|
|
8.8311 |
8.7391 |
-7.97% |
|
|
7.4179 |
7.2865 |
-7.95% |
|
|
0.0572 |
0.0559 |
-8.66% |
|
|
1.0444 |
1.0155 |
-9.54% |
|
|
88.4290 |
90.0236 |
8.64% |
Source: Bank of Ghana
|
COMMODITIES MARKET |
|
||
|
Commodity |
Closing Week |
Previous Week |
YTD (%) |
|
(US$/bbl.) |
97.02 |
92.85 |
22.62% |
|
(US$/oz) |
1885.24 |
1,895.94 |
3.31% |
|
(US$/MT) |
2,489.84 |
2,565.55 |
1.62% |
Source: Bloomberg, Bullion by Post, ICCO
|
|
2021 |
2020 |
|
|
|
Income Statement GH¢ GH¢ |
||||
|
Net Interest Income |
469,547,000 |
522,871,000 |
|
|
|
Operating Income |
745,723,000 |
688,605,000 |
|
|
|
Total Operating Expense |
(408,206,000) |
(403,977,000) |
|
|
|
Profit before income tax |
337,517,000 |
284,628,000 |
|
|
|
Profit after tax |
222,852,000 |
213,803,000 |
|
|
|
Earnings Per Share |
0.3564 |
0.3419 |
|
|
|
Statement of financial position GH¢ GH¢ |
||||
|
Cash and cash equivalents |
1,307,701,000 |
1,430,248,000 |
|
|
|
Loans and advances to customers |
2,239,520,000 |
2,400,950,000 |
|
|
|
Total assets |
10,039,979,000 |
7,924,586,000 |
|
|
|
Deposits from customers |
5,161,933,000 |
4,164,301,000 |
|
|
|
Total liability |
8,753,297,000 |
6,791,814,000 |
|
|
|
Total Shareholders’ equity |
1,286,682,000 |
1,132,772,000 |
|
|
|
Key Ratios 2021 2020 |
||||
|
Leverage ratio |
9.5% |
10.1% |
|
|
|
Liquid Ratio |
234.6% |
217.6% |
|
|
|
Capital Adequacy Ratio |
25.1% |
22.3% |
|
|
|
Non-Performing Loans |
11.2% |
13.5% |
|
|
CAL Bank PLC. released its financial statements for the full year ended 31st December, 2021 on 25th February, 2022 as displayed above. Net Interest Income reduced over the 1 year period by 10.20%. However Profit after Tax and Earnings per share increased over the period by 18.58% and 4.24% respectively. Also, CAL saw its NPL fall from 13.5% to 11.2% representing a 17.04 percentage points change with Capital Adequacy going up by 12.56%
JUSTIFICATIONS FOR INCLUDING STOCKS IN A PORTFOLIO
Except for a few short periods, stocks have consistently outpaced the rate of
ANALYSTS
Godwin Kojo Odoom: Senior Research Analyst
Obed Owusu Sackey: Analyst
Nelson Cudjoe Kuagbedzi: Analyst
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