Business News of Monday, 1 August 2005
Accra, Aug 1, GNA - In a move to enhance investor confidence and boost liquidity, the Ghana Stock Exchange on Monday introduced daily trading in shares of listed equities on the Accra bourse.
Hitherto, shares in the equities were traded three times in the week, that is, Mondays, Wednesdays and Fridays.
Despite the new developments settlement of claims for shares bought and sold would still be done three days after a trading session.
Mr Kingsley Yamoah, Managing Director of the Exchange, said the five times a week trading sessions would increase market activities and serve as an avenue for investors, who want to buy and sell shares on the bourse any of the week days.
The Exchange, which in the last two years saw sterling performances, had this year been reeling under heavy bearish pressure with falling share prices, declining index and the change for the year-to-date, which now stands at -25.98 per cent.
Mr Yamoah said investors should understand that the Stock Exchange was like any other market and prices of shares could either go up or down depending on the situation. "The Stock Exchange must not be seen differently."
The Managing Director said the success of the daily trading would depend on the efficient operations of the brokerage firms, adding that the exchange would not tolerate any operational lapses in the back offices.
Besides, he said, the daily trading would also pave the way for solving teething problems in post-trading activities before the introduction of the automated trading comes on board.
Mr Yamoah asked brokerage firms to offer enhanced services to their clients, saying that was the only way to make an impact on the market. Brokers that spoke to the Ghana News Agency expressed optimism that the daily trading would increase market activities as well as liquidity on the exchange.