Presentation on theme: "GHANA STOCK EXCHANGE Bringing Companies and Investors Together. Presentation at ASEA Conference CAIRO – EGYPT 10 – 12 Sept. 2005 By EKOW AFEDZIE GENERAL."— Presentation transcript:
GHANA STOCK EXCHANGE Bringing Companies and Investors Together. Presentation at ASEA Conference CAIRO – EGYPT 10 – 12 Sept. 2005 By EKOW AFEDZIE GENERAL MANAGER GHANA STOCK EXCHANGE
INTRODUCTION Ghana is a peaceful developing country on the West Coast of Africa. The capital is Accra. Ghana is a democratic country – (Multiparty Democracy). Ghana has a population of approximately 20m. Prudent macroeconomic policies and strong agricultural performance have sustained steady economic growth over the past 5 years. Reforms have improved the business and regulatory environment.
INTRODUCTION GSE upholds all related internationally accepted principles. Good rule book – Listing, Membership, Trading, Clearing & Settlement Rules. GSE committed to transparency & adequate disclosure. Securities and Exchange Commission exists as a regulator to protect market and investors.
OVERVIEW OF GHANA STOCK EXCHANGE The Ghana Stock Exchange commenced operations in 1990. – Incorporated as a Company Limited by guarantee. The Exchange has no owners but members - two categories of members :- Licensed Dealing Members (16) Associate Members (33)
OVERVIEW OF GHANA STOCK EXCHANGE cont’d Trading Continuous Auction System – but Manual Clearing and Settlement Manual but centralized Settlement period is T + 3
OVERVIEW OF GHANA STOCK EXCHANGE cont’d Central Securities Depository Currently in operation but for Government Securities. -Equities to be introduced in 2006.
OVERVIEW OF GHANA STOCK EXCHANGE cont’d Listing – 3 Categories - 1 st, 2 nd and 3 rd Official Lists Provisional Listing approach permitted.
OVERVIEW OF GHANA STOCK EXCHANGE cont’d Market open to non-resident foreigners (NRF). One NRF has a maximum holding limit of 10% per listed security – maximum holdings of all NRF holdings in one security is 74%. (can be exceeded only when prior approval is granted). - Restrictions however do not apply to 3 companies. Free and full foreign exchange remittability. Taxation -10% final dividend withholding tax for all investors -No Capital gains tax -No stamp duty on transfer of shares.
MARKET PERFORMANCE Index Performance (% change) Up by-45.96% in 2002 -154.67% in 2003 -91.33% in 2004 --28.14% in 2005 (5/9/05) Great returns made by investors in the last four years.
MARKET PERFORMANCE con’t Market Capitalization -¢92,128.40 billion on September 5, 2005 (equivalent of US$10,171 million). Volumes and Values as at September 5, 2005 -Volume: 856.93 million -Value: ¢1,868.02 billion
STRATEGIC INITIATIVES FOR GROWTH Pursuit of listings more aggressively. -4 IPOs in 2004 and expecting more in the coming years. -Privatization of large State Owned Enterprises in the offing. -More banking stocks expected shortly.
STRATEGIC INITIATIVES FOR GROWTH Creating incentives for listing -Corporate tax rebate of 5% for newly listed companies during the first 3 years. -Discount on listings fees for small companies. Positioning the exchange as an attractive investment avenue to improve liquidity and increase trade volumes. -Extensive educational campaign. -Removing restrictions on non-resident foreign investors.
STRATEGIC INITIATIVES FOR GROWTH Improving efficiency of the market -Bank of Ghana has established a Central Securities Depository for all securities (equities to be admitted therein shortly). -Automation of trading, high on the agenda in 2006. -Major review of entire GSE Rule Book almost completed.
CONCLUSION The vision is to make Ghana Stock Exchange more relevant in the economic development of Ghana through facilitation of long-term funds mobilization. -Expertise available -Economic Environment favourable for long term investments. -Investors invited to experience the Ghanaian hospitality as well as good returns on investments. Thank You