Ghana Stock Exchange to reinforce investor confidence

Accra, June 28, GNA - The Ghana Stock Exchange aims at upholding the highest standards of market integrity, professionalism and best practices in the conduct of business, in order to reinforce investor confidence.

Mr Frank Adu Jnr, Chairman of the Council of the Exchange told the annual general meeting of members that the Exchange will also facilitate primary market activities by encouraging more listings to deepen the market and improve liquidity.

There are plans to intensify public education, especially on matters pertaining to the Depository, to ensure the success of the migration of share certificates into the reservoir. The Exchange in 2008 recorded a 583 per cent increase in surplus of income over expenditure of GH1.64 million as against GH 0.24 million recorded in 2007.

Mr Adu attributed the good results to the higher number of listings as well as the substantially increased trading activity during the year. He said although the global financial crisis affected most stock markets, the Accra bourse proved resilient and recorded significant positive results in all three key indicators - index, market capitalization and trade volumes.

The GSE-All Share Index ended the year with a 58 per cent, which was among the best worldwide. Total market Capitalisation recorded an increase of 44 percent ending the year at GH17.9 billion. Market turnover as measured by the volume of shares traded saw a 185 percent increase reaching 531 million shares.

On the review of the Exchange's not-for-profit status, Mr Adu said Council was awaiting a 'no objection' response from the World Bank on the competitive bidding process launched for a consultant to determine the road map for demutualization to move to the next stage. Demutualisation is the process of changing a mutual or cooperative association into a public company by converting the interests of members into shareholdings.

The Annual General Meeting saw the introduction of new Council members, who would run the affairs of the Exchange in the next two years.