Weekly Capital Market Report Week Ending 23-09-22. – BusinessGhana
INVESTMENT TERM OF THE WEEK
Hold: Hold is an analyst's recommendation to neither buy nor sell a security. A company with a hold recommendation generally is expected to perform with the market or at the same pace as comparable companies. A hold recommendation can be thought of as holding what you have and holding off on buying more of that particular stock. A hold is one of the three basic investment recommendations given by professional financial analysts.
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¢166.50.
EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market slips 11.69 points over the week to close at 2,488.21; returns -10.80% YTD.
Market activity for the week lost 11.69 points to close at 2,488.21 points translating into a YTD return of -10.80%. The GSE Financial Stock Index (GSE-FSI) also lost 17.69 points to close at 2,055.64 points translating into a YTD return of -4.47%.
Nineteen (19) equities traded over the week, ending with two (2) gainers and four (4) decliners. ACCESS and CAL were the gainers as they gained GH¢0.30 and GH¢0.06 to close trading at GH¢4.00 and GH¢0.80 respectively. SOGEGH, EGH, TOTAL and GCB were the decliners as they lost GH¢0.09, GH¢0.15, GH¢0.18 and GH¢.030 to close trading at GH¢1.00, GH¢6.60, GH¢4.00 and GH¢3.70 respectively. As a result, Market Capitalization decreased by GH¢122.07 million to close the trading week at GH¢64.28 billion.
A total of 953,819 shares valued at GH¢1,460,375.70 were traded during the week. Compared with the previous trading week, this week’s data shows a 91.82% decrease in volume traded and an 87.92% decrease in trade turnover. Scancom PLC. accounted for 42.78% of the total value traded and recorded the most volumes traded.
GSE EQUITY MARKET PERFORMANCE
Indicator
Current Week
Previous Week
Change
GSE-Composite Index
2,488.21
2,499.90
-11.69pts
YTD (GSE-CI)
-10.80%
-10.38%
4.05%
GSE-Financial Stock Index
2,055.64
2,073.33
-17.69pts
YTD (GSE-FSI)
-4.47%
-3.65%
22.47%
Market Cap. (GH¢ MN)
64,279.00
64,401.07
-122.07
Volume Traded
953,819
11,666,517
-91.82%
Value Traded (GH¢)
1,460,375.70
12,084,263.04
-87.92%
TOP TRADED EQUITIES
Ticker
Volume
Value (GH¢)
MTNGH
686,607
624,812.37
TOTAL
133,210
533,196.92
GCB
60,590
224,240.30
SOGEGH
35,536
35,584.24
SIC
14,534
4,796.22
KEY ECONOMIC INDICATORS
Indicator
Current
Previous
Monetary Policy Rate
August 2022 22.00%
19.00%
Real GDP Growth
March 2022 3.30%
5.40%
Inflation
August 2022 33.90%
31.70%
Source: GSS, BOG, GBA
GAINERS AND DECLINERS
Ticker
Close Price (GH¢)
Open Price (GH¢)
Price Change
Y-t-D Change
ACCESS
4.00
3.70
0.30
26.98%
CAL
0.80
0.74
0.06
-8.05%
SOGEGH
1.00
1.09
-0.09
-16.67%
EGH
6.60
6.75
-0.15
-13.16%
TOTAL
4.00
4.18
-0.18
-20.32%
GCB
3.70
4.00
-0.30
-29.39%
SBL RECOMMENDED PICKS
Equity
Price
Opinion
Market Outlook
MTN GHANA
GH¢ 0.91
Strong 2022 Q2 Financials
Higher Ask Price
BOPP
GH¢ 6.48
Strong 2022 Q2 Financials
Low offers
CAL BANK
GH¢ 0.80
Strong 2022 Q2 Financials
Available offers
ECOBANK
GH¢ 6.60
Strong 2022 Q2 Financials
Bargain bids
SOGEGH
GH¢ 1.00
Strong 2022 Q1 Financials
Low demand
FANMILK
GH¢ 3.00
Positive Sentiment
Low demand
EQUITY UNDER REVIEW:
NewGold. (GLD)
Share Price
GH¢166.50
Price Change (YtD)
53.31%
Market Cap. (GH¢)
GH¢66.60 million
Dividend Yield
–
Earnings Per Share
–
Avg. Daily Volumes
942
Value Traded (YtD)
GH¢66,109,870.60
SUMMARY OF AUGUST 2022 EQUITY MARKET ACTIVITIES
Indicator
August
2022
August 2021
% Change
GSE-CI YTD CHANGE
-10.05%
41.66%
–
GSE-CI
2,508.99
2,750.37
-8.78%
GSE-FSI YTD CHANGE
-3.34%
8.21%
–
GSE-FSI
2,079.94
1,929.19
7.81%
VOLUME
77.25 M
20.67 M
273.81%
VALUE (GH¢)
114.17 M
27.49 M
315.37%
MKT. CAP. (GH¢M)
64,445.45
62,904.96
15.69%
ADVANCERS & DECLINERS
ACCESS, GLD, BOPP, SOGEGH, CAL, TOTAL | GCB, UNIL, ETI, SIC, EGH
Source: Ghana Stock Exchange, SBL Research
GSE AGAINST SELECTED AFRICAN STOCK MARKETS
Country
Current Level
YTD 
(Ghana) GSE-CI
2,488.21
-10.80%
(Botswana) BGSMDC
7,386.52
2.89%
(Egypt) EGX-30
9,933.05
13.34%
(Kenya) NSE ASI
134.86
0.60%
(Nigeria) NGSE ASI
49,026.62
-6.11%
(South Africa) JSE ASI
63,416.66
-2.57%
(WAEMU) BRVM
206.84
-0.22%
Source: Bloomberg
CURRENCY MARKET
Currency
Closing Week
Previous Week
YTD Change
(GH¢)
(GH¢)
%
9.5414
8.2897
-37.05%
10.4150
9.4586
-21.97%
9.2721
8.2966
-26.36%
YEN
0.0667
0.0580
-21.68%
YUAN
1.3385
1.1840
-29.42%
CFA FRANC
70.7453
79.0634
35.79%
Source: Bank of Ghana
COMMODITIES MARKET
Commodity
Closing Week
Previous Week
YTD (%)
BRENT CRUDE OIL
(US$/bbl.)
85.82
92.00
8.47%
GOLD
(US$/oz)
1,645.63
1,675.17
-9.82%
COCOA
(US$/MT)
2,204.12
2,245.94
-10.04%
Source: Bloomberg, Bullion by Post, ICCO
JUSTIFICATIONS FOR INCLUDING STOCKS IN A PORTFOLIO
ANALYSTS
Godwin Kojo Odoom: Senior Research Analyst
Obed Owusu Sackey: Analyst
Wisdom Asigbetse: Analyst
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