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Business News of Tuesday, 20 December 2016

Source: citifmonline.com

ADB attributes rise in share price to investor confidence

The Agricultural Development Bank (ADB) has attributed the significant performance of the bank’s share price to investor confidence in the banking stock.

As at close of trading on Monday, December 19th 2016, the share price of ADB had gained about 38 pesewas and trading at 3 cedis 33 pesewas. Also, a total of 10,000 ADB shares were traded on the bourse on Monday.

“We think that it is the confidence that investors have in the shares of the bank; on the exchange the price is determined by the confidence that investors have and that is what is being played out here,” Managing Director of ADB, Daniel Asiedu told Citi Business News.

The bank, which was listed on Monday, December 12th 2016, started with an initial share price of 2 cedis 65 pesewas.

Responding to calls by the GSE for listed companies to channel investments into specified areas of their operations, Daniel Asiedu further indicated that the bank would soon commence allocating the yields from the IPO and contribute to its efficiency.

“Before we came to the exchange, we agreed to the terms and conditions of the exchange and clearly because we are almost ending the year, it is our hope that sometime next year, we will be presenting our investors with updates during the facts behind the figures session,” he remarked.

The Agricultural Development Bank becomes the 40th company to list on the Ghana Stock Exchange. It also becomes the eighth bank to list on the GSE.

Meanwhile Mr. Asiedu is optimistic of a strong performance in 2017, where the bank will from March, begin publishing its financial statements to its investors.

“We think that putting this year behind us next year will be very bright; we are going to perform very well all things being equal,” he added.