Manfred K. Bressey
Manfred K. Bressey, General Manager of IFS Capital Management Limited, has called on large corporate institutions to show interest in listing on the Ghana Stock Exchange (GSE) to bring some vibrancy on the Accra Bourse.
If there is a legal requirement that will force companies of a certain size to get listed on the bourse, that should be applied so that such entities would be obliged to list, according to Mr Bressey.
“There are over 36 companies on the stock market, but just a few are trading regularly. Companies that are listed on the stock market and are just making a presence or adding onto the numbers should be relooked. Because if for a long time they do not trade, investors don’t make any returns on them.
“Perhaps it may be a prudent decision to delist them from the market to allow those who would trade and bring good returns to the market. And if the stocks trade, that is where you see their true values. If you buy and sell and there’s a relative price differential, and that is where you get the true price of the stock.”
Mr Bressey revealed that the stock market has had less than 40 companies listed since 1991, adding that that was not good enough.
“We have close to 300 companies listed on the Nigerian Stock Exchange, which makes it vibrant. So when there are more companies, more people invest in stocks.”
He also talked of the introduction of the alternative market where the strict requirements are reduced a bit, saying that was an incentive.
“We thought that some SME companies will list so their performance could add to the total volumes on the stock, but there is still no such thing.
“We encourage people to invest at this stage in our funds so that they can benefit from our professional selection of stocks or invest directly into the equity market to reap returns.” 2016 was not exciting for stock market investors in Ghana.
The unimpressive financial results posted by listed companies on the Ghana Stock Exchange heavily weighed on their prices during the year.
Investors sought safe havens in government securities and fixed income securities that offered more attractive rates. Such a situation put selling pressure on the shares and pushed share prices down.
By Samuel Boadi