Stock Exchange No More Lucrative

THE CHIEF Executive Officer of the Unique Trust Financial Services, Mr. Prince Kofi Amoabeng has noted that it is no more a prudent business venture for any company to be listed on the Ghana Stock Exchange (GSE).

According to him, though stock exchange all over the world is supposed to be a place where shares or equities could easily change hands, the same cannot be said about GSE thus making it unattractive for investment.

Speaking in an interview prior to the opening of an entrepreneurial workshop organized by Unique Trust for its customers in Takoradi last Thursday as part of its 10 years anniversary, Mr. Amoabeng said the situation had arisen because Ghanaians did not understand the stock exchange or had little knowledge about its operations.

He also mentioned low purchasing power among Ghanaians, which prevented them from buying shares when it is floated as another contributing factor.

As a result of this, Mr. Amoabeng said anytime a company floated shares, it was mainly institutions that purchased the bulk of it, saying this was not the best because the purchased shares are not easily traded or disposed off.

"These institutions buy the shares as a long-term investment and do not therefore trade with it", he stressed, adding that some of the individual shareholders also think the same way.

He noted that it was only when the shares are traded at the exchange that it gained more value but since this was not happening, it was not a lucrative venture for one to buy shares in companies listed on the stock exchange.

Further, he told the Business Chronicle that currently investment in treasury bills was giving more returns than buying shares at the stock exchange because government was borrowing more from the domestic market.

Mr. Amoabeng, who taught at the GSE for eleven years, said for these reasons, Unique Trust, has no intention of floating its shares in order to be listed on the stock exchange but added that the company would reconsider its decision anytime the situation changed or improved.

Addressing participants at the workshop on the theme, "Wealth Creation through Sound Business Management", Mr. Amoabeng noted that success in business was very much dependent on an employer's respect for customers and employees.

Also, he advised participants to avoid nepotism and employ competent persons irrespective of their ethnic or religious background to help improve their business.

"Here at Unique trust anytime there is a vacancy I do not care whether you are my sister, brother or from my village or even a former classmate, if you perform well at the interview you get the job", he stated.

According to him, employing people based on nepotism or favours, particularly along family lines without the requisite knowledge was a recipe for disaster that could lead to the collapse of one's business.

Unique trust, which started ten years ago as moneylenders with initial capital of 150 million cedis at the moment, has total assets of 500 billion cedis and employs about 240 workers.