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Yamoah bemoans absence of key sectors on bourse
Less than 10 of the 33 banks operating in the country have listed on the bourse, whilst none of the six telecom companies is listed, only Anglogold Ashanti and Golden Star Resources are listed from the mining sector.
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Yamoah said this does not make for a true measure of economic activity in the country.
“Exchanges, throughout the world, are more or less barometers of economic activity in the country they operate in. And so, if you have an exchange that doesn’t have telecom represented, and telecom is a big sector as far as the country is concerned, then that is a problem.”
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“Let me say that mining is also a big sector as far as the country is concerned, and also the banking and the insurance sectors. The oil and gas sector can also be seen as key as far as the economy of the country is concerned now. And if we have all that I have mentioned underrepresented on the exchange, then, the exchange doesn’t become a true barometer of what economic activity is in this country,” he added.
Yamoah’s concern follows a poor performance by the bourse for two consecutive years. I n 2015, the GSE recorded a negative 11.77 percent growth in cedi terms, in 2016, as the all-share index presented a negative 15.33percent growth.
Market capitalisation dropped from GH¢57.116billion in 2015 to GH¢52.690billion in 2016.
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Yamoah said this is causing a lot of investors to move from the equity market to the fixed income market.
“It explains the fact that the equity market has been seriously down in 2016; this is the second year of negative territory for the equity market and we believe something ought to be done about it or we may go into the new year with the same problems which will not be good for the market.”
He revealed that the GSE is putting measures in place to get more companies listed on the bourse.
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