Business News of 2012-10-11

Stanchart Shareholders to enjoy bonus share issue

Shareholders of Stanchart will from next month enjoy five additional shares for every share held.

This comes after the bank yesterday announced the release of a little over 96 million ordinary shares in its much awaited bonus-share issue.

New investors who want to benefit from this issue would however have to buy into the bank shares before November 9. The bank’s stock has been one of the most expensive and sought after by investors on the Ghana Stock Exchange. It ended trading yesterday at 40 Ghana cedis 50 pesewas.

But Investment Analyst with SIC Financial Services, Derrick Mensah tells JOY-BUSINESS this might not necessarily lead to a significant increase in liquidity in the shares of Stanchart.

“The main issue here that is not going to help liquidity is the parent company, Standard Chartered Holdings holding nearly 70 percent of the issued shares and SSNIT also holding about 14 percent of the issued shares.

This implies the two institutions own 84 percent of the issued shares and as institutional investors who hardly trade in their shares on the market adversely affecting the free float of the shares on the market” he said.

The issue is expected to increase the bank’s shares on the Ghana Stock Exchange from about 19 million to over 100 million as required.