GSE Automation Set For September

ALL IS set for the commencement of the automation of trading on the Ghana Stock Exchange (GSE).

CITY & BUSINESS GUIDE checks at the exchange revealed that major works had been completed and the contractor, Infotech of Pakistan, was putting finishing touches in order for the automation system to begin in September this year.

According to the paper's checks, the GSE had also acquired another floor in the Cedi House building in order to expand its activities.

Last Thursday, the Finance and Economic Planning Minister, Kwadwo Baah-Wiredu and officials of the ministry visited the exchange to acquaint themselves with progress of work there.

The electronic trading system would not only improve liquidity on the stock market but also attract more investors onto the market especially those from outside the country.

The automation of the trading platform, according to stock analysts, would enhance the bond market as well as improve general trading on the exchange.

In a related development, the exchange has expressed confidence that more equities will be listed before the end of the year.

Presently, the draft prospectus of Unique Trust Financial Services and Aviance Ghana Limited are awaiting approval from the Securities and Exchange Commission (SEC).

Meanwhile, the Ghana Stock Exchange (GSE) has maintained its lead in the first half of 2008 among African Stock Markets with investors gaining more than 50 percent in returns.

The GSE all-share index, the benchmark measure of performance of the bourse, moved up from 6,718.88 points at the beginning of January to 10,346.30 in June, representing a half year gain of 56.77 percent.

This compares with a gain of a mere 5.76 percent for the same period in 2007.

The gain in the index at the half-year stage is above the prevailing annual interest equivalent on 91-day treasury bills of 16.3 percent at the end of June, 2008. It was also above the June 2008 twelve-month inflation rate of 18.41 per cent.

“The general expectation is that the GSE is positioning itself for another outstanding performance, which won it the best performing market in Africa if not in the world in 2003,” the exchange said in its review of the half-year.

Market capitalization rose from GH¢12,513.05 million in January to GH¢15,587.76 million at the close of June, an increase of GH¢3,074.71 million due mainly to increases in share prices of most of the listed companies.

Over 10 companies including Ecobank Ghana, SIC Insurance, Unilever, EIC and Fanmilk were active on the market, contributing significantly to the growth.

By Charles Nixon Yeboah