Analysts want companies compelled to list on GSE


The General Manager for IFS Capital Management Limited, Manfred Bressey has said that, compelling companies to list on the stock exchange will grow the country’s stock market.

This is in support of other financial analysts who have suggested and called for the implementation of some legal requirements that will compel certain large corporate institutions to list on the stock market.

The analysts argue that such a move will afford investors more options which will ultimately increase investments on the stock.

“If there are any legal requirements to force companies of a certain size to get listed on the stock, that will really increase interest on the stock because a lot of these banks and telecommunication companies take all the returns away but if they can list, it will bring more interest on the market”, Mr. Bressey has noted.

Mr. Bressey, however, bemoaned the small number of companies currently listed on Ghana’s stock market, “From 1991 we have less than forty companies listed on the stock and that’s not good enough while Nigeria has over two hundred close to three hundred companies listed on the Nigerian stock exchange. I think when there are more companies more people will list on the companies because there are more options.

Commenting on the Ghana Alternative Market, he explained that the market had not yet achieved its aim of increasing the number of small and medium scale businesses on the market.

“The exchange has brought in the alternative market, where the strict requirements are reduced a bit that is also receiving interest but not as much as was expected, we thought that a lot of SME like companies will list on their performance to add to the total stock but there is still room for improvement, we think that more companies especially large corporations should show interest in listing so that we have some vibrancy on the market I think that will create interest.”

Mr Bressey pledged that the company this year would invest in high yielding stocks

The General Manager of iFS Capital Management Limited, Manfred K. Bressey has called for a law to make it obligatory for big companies in the country to list on the Ghana Stock Exchange (GSE).

That, he said, would make the Accra bourse very liquid and bring some vibrancy to the market.

Mr. Bressey, who made the suggestion in an interview with the Times Business after iFS Capital Management Limited’s third Annual General Meeting in Accra yesterday said, although there were more than 300 large corporate bodies in the country, less than 40 were listed on the GSE.

IFS Capital Management Limited manages three open-ended investment products namely Mywealth Unit Trust, Richie Rich Unit Trust and Legacy Unit Trust.

Mr Bressey said the listing of more companies on the GSE would provide more alternative investment for investors.

“We want the market to be liquid, and trade more to erase the impression held by some investors that African or Ghanaian stock market is not liquid,” he said.

The General Manager of IFS opined that although GAX, the alternative market recently introduced by the GSE for the small and medium scale enterprises (SMEs) to list on the stock market, had attracted some SMES, it had not generated the necessary interest expected by players in the stock market.

Highlighting on the 2016 performance of the investment products of iFS, he said the company last year recorded an impressive performance in spite of the difficult economic challenges.

For instance, he said, the assets of the Mywealth Unit Trust Fund grew by 22.66 percent from GHC841, 319 to GHC1, 040,840, adding that “the fund returned a positive and impressive yield of 25.43 percent over the 2015 return of 14.69 percent”.

Mr Bressey said the Richie Rich Trust demonstrated a healthy performance for the period under the review recording a robust yield of 26.05 percent, saying “the fund therefore outperformed both the 91-day treasury bills, which were at 16.43 and 17.63 respectively by the end of year”.

He said the net investment income of the Richie Rich Trust in 2016 grew significantly ending the year at GHC80, 069 representing a 40 percent increase over 2015’s performance of GHC47, 818.

For the Legacy Unit Trust, Mr Bressey said the net assets for the Trust grew by 30.33 percent to GHC692, 848 from GHC531, 588, indicating that “this is a marked improvement over the last year’s growth rate of 1.6 percent”.

The General Manager said the positive performance of the three investment instruments was influenced by the huge investment the company made in government money instruments and other high yielding stocks.

Mr Bressey pledged that the company this year would invest in high yielding stocks and government money instruments to help customers of the company get good returns on their investment.

He said the good first quarter results of the companies listed on the GSE indicated that market would do well this year and therefore encouraged Ghanaians to invest more in the Ghanaian stock market.

-Adnan Adams Mohammed

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