If u have a property to let out in London, please do not hesitate to contact us on 0044 208858 3108, or 0044 7723 991 407, and we will arrange tenants for you.
If u have a property to let out in London, please do not hesitate to contact us on 0044 208858 3108, or 0044 7723 991 407, and we will arrange tenants for you.
Aki 10 years ago
I am of the opinion that the absence of liquidity in the Ghanaian stock exchange is more to do with absence of market markers who traditionally buy shares for their own accounts for subsequent trading as opposed to the issuea ... read full comment
I am of the opinion that the absence of liquidity in the Ghanaian stock exchange is more to do with absence of market markers who traditionally buy shares for their own accounts for subsequent trading as opposed to the issueance of more shares. If more shares are issued and an investor 'A' wants to sell part of his/her shares in the company that issued the bonus shares and there is no counter party to that transaction, then impact on liquidity will be magnified in the market.
Sakura 10 years ago
It is sad that the SEC and GSE and hitting the wrong nail. The market is driven primarily by the state of the general economy and how the listed companies are performing in their respective market segments and not by the numb ... read full comment
It is sad that the SEC and GSE and hitting the wrong nail. The market is driven primarily by the state of the general economy and how the listed companies are performing in their respective market segments and not by the number of shares issued by an entity.
The other issue is education - the average Ghanaian does not understand the functions of the stock market. How many of our people can read and understand those reports? Our journalist add to the confusion. The educated are also confused by the lousy reports written by the so-called analysts. They just write down what I can read from any of the newspapers - no insights at all. They forget that they are required to ANALYSE companies and come out with objective conclusions that will convince investors to buy or sell a stock. Analysts also gloss over the fact that they indirectly educate these companies they are writing on, as management of the companies read their reports (they should). So, in a sense they have failed to educate these CEOs to improve on their performance.
A company use the stock market for cheap financing. How? Instead of going to a bank to borrow or issuing a bond (convertible or straight) the company can issue new shares (free of any charges) to finance new growth avenues or investments. This is why I believe the SEC and GSE statements are critically flawed.
Disclosure by these companies is very poor, and a savvy investor will not fall for that. I remember asking the boss of a leading Ghanaian brokerage house how they are able to pay their analysts given the low liquidity (hence low commission revenues) of the GSE. his answer to me was a very curt..."You are asking a theoretical question". So, when you an investor is skeptical of the financials of an intermediary company why should they buy shares in Ghana? This is not to say that the brokerages in Ghana are financially strapped, but I do believe a lot of them are.
Issuing more shares does not make your company liquid, but rather strong business franchise, good management, strong revenue and profit growth, higher dividends, are some of the ingredients that will pique investor interest and hence liquidity. Companies usually take advantage of this by issuing new shares to fund new opportunities or investment needs.
kakra 10 years ago
I think the number of shares to some extent is not the issue but structure of the ownership of the listed shares. If the increase in the shares ends up in the hands of institutional investors who rarely trade shares then the ... read full comment
I think the number of shares to some extent is not the issue but structure of the ownership of the listed shares. If the increase in the shares ends up in the hands of institutional investors who rarely trade shares then the liquidity problem will still exist.
If u have a property to let out in London, please do not hesitate to contact us on 0044 208858 3108, or 0044 7723 991 407, and we will arrange tenants for you.
I am of the opinion that the absence of liquidity in the Ghanaian stock exchange is more to do with absence of market markers who traditionally buy shares for their own accounts for subsequent trading as opposed to the issuea ...
read full comment
It is sad that the SEC and GSE and hitting the wrong nail. The market is driven primarily by the state of the general economy and how the listed companies are performing in their respective market segments and not by the numb ...
read full comment
I think the number of shares to some extent is not the issue but structure of the ownership of the listed shares. If the increase in the shares ends up in the hands of institutional investors who rarely trade shares then the ...
read full comment