Microcap: The term “microcap,” also known as micro-cap, is generally used for companies with a low market capitalization. Microcap stocks can either be newly listed companies with very few regulations or smaller companies with significant potential to become large-cap stocks in the future. Microcap stocks are usually traded over-the-counter, with low publicly available information, and are riskier to invest in than large-cap stocks.

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¢163.50.

EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market rallies 163.97 points over the week to close at 2,560.49; returns -8.20% YTD.

Market activity for the week inched up by 163.97 points to close at 2,560.49 points translating into a YTD return of -8.20%. The GSE Financial Stock Index (GSE-FSI) however lost 7.50 points to close at 2,085.40 points translating into a YTD return of -3.09%. Twenty-three (23) equities traded over the week, ending with four (4) gainers and two (2) decliners. GLD, MTNGH, SOGEGH and CAL were the gainers as they gained GH¢6.30, GH¢0.15, GH¢0.04 and GH¢0.01 respectively whilst the decliners were GCB and ETI as they lost GH¢0.01 and GH¢0.01 respectively. As a result, Market Capitalization increased by GH¢1,974.78 million to close the trading week at GH¢64.80 billion.

A total of 4,660,329 shares valued at GH¢14,758,112.92 traded during the week. Compared with the previous trading week, this week’s data shows a 92.96% decline in volume traded and 70.86% decline in trade turnover NewGold (GLD) accounted for 53.80% of the total value traded whilst Scancom PLC. (MTNGH) 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

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