According to him, the Accra bourse is suffering some low activity as external investors are adopting a wait-and-see attitude in the midst of economic challenges.
Yamoah said this in an interview during the launch of the Initial Public Offer (IPO) of Intravenous Infusions Limited (IIL), an indigenous pharmaceutical company, which specializes in the production of intravenous infusion in Ghana.
The GSE was established 25 years ago as a private limited liability company to provide the facilities and framework to the public for the purchase and sale of bonds, shares and other securities.
Foreign investors constitute between 60 percent and 65 percent of investors on the exchange, but Yamoah said these were holding on to their resources, waiting to see how the economy performs.
He agreed with general fears expressed by some analysts that the market would for the next one year experience a draught in foreign components of investments.
“There is a zero percentage growth or even negative growth due to the depreciation of the cedi. Solutions need to be found to this trend else there is very little we can do at the exchange to contain the situation,” he stated.
The Accra bourse was also tasked to control the granting of quotations on the securities market in respect of bonds, shares and other securities of any company, corporation, government, municipality, local authority or other body corporate, and to regulate the dealings of members with their clients and other members.
Another issue confronting the exchange, according to the MD, is the low saving culture among Ghanaians.
“We are yet to reach the peak of our saving culture in this country, and so when that saving culture is not there, domestic investment also suffers,” Yamoah averred.
Last year, the exchange established the Ghana Alternative Market (GAX) to leverage capital for Small and Medium Enterprises (SMEs).
So far, IIL is the fourth company to launch its IPO on the GAX, with three others listed already.
“The GAX offers a great relief for companies which have to rely on borrowings from banks and Non-Bank Financial Institutions (NBFIs) and pay interest at rates that range between 30 percent and 84 percent per annum, and sometimes higher,” Jacob Aidoo, head of Issues Department at the Securities and Exchange Commission (SEC), observed.
He urged the GSE to provide a link on its website where information on the performance of companies listed on the GAX can be accessed in real time. Enditem