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The Ghana Stock Exchange (GSE) is optimistic about achieving in one year what it has been unable to accomplish in its 29-year history.
By giving five institutions, including MTN Ghana, the nod for a total of 4.67 billion GH ¢ in the stock market between today and December of this year, the GSE seeks to almost double the amount raised on the market since 1989, when it opened for the first time.
During the period, all securities transactions generated a combined amount of GH ¢ 2.48 billion, up 88.3% from the forecast amount this year.
This year's issues are launched by MTN and four banks – Access Bank, Agricultural Development Bank, Republic Bank and Societe Generale – which compete with time to meet the new demand for capital from the central bank before the deadline of December 2018.
While admitting the important task ahead, GSE's Director General (MD), Mr. Kofi S. Yamoah, says that the local stock exchange has what it takes to respond on demand in a way that will prove to pessimists that she has come to the table of deep and liquid markets that execute big ticket transactions.
"It will be good to establish this record so that we can prove to all those who have asked this question, that the market is deep enough to accept the (" At the end of all this, we will have a reason to answer this question, and I believe we will respond favorably, "he added.
Ms. Enyonam Maria Dagadu, Chief Operating Officer of Africa Alliance Securities Ghana Limited (AASG), has stated that a successful execution of the planned transactions would set a good precedent for the market and signal to foreign investors that the Ghana market was deep to support their robust market.
"It will be very difficult od. Investors told us that our market is too small and when you offer them certain stocks, they tell you that they can not buy it in Ghana.
"So at this point, we will prove to them that you know what, we can reap $ 750 million, "she said in a separate interview
.
Why it will be a success
Although of a considerable amount, Mr. Yamoah stated that the open nature of the market meant that non-resident investors could join their resident counterparts to make complete the offers.
According to most stock market badysts, the rise in pension funds – from monthly contributions at levels two and three – was another reason why it was possible to increase by almost two times what had been collected in 29 years
. last census, the value under management of private pension funds was greater than 10 billion GH ¢.
"As an open market in which resident and non-resident investors can participate, there is no limit to any amount that we can manage provided that the company acts and that investors consider that 39, it is a good investment proposal ".
Impact on liquidity
MTN Ghana, which delivers 35% of its shares against 3.48 billion GH ¢, recorded a turnover of 3.4 billion GH ¢ and was 55, 09% of market share in December 2017.
Since the launch of the offer on May 29, the company has launched a large public campaign to raise public awareness to frequent it.
Ms. Dagadu of AASG said the campaign should help attract wealthy individuals.
"We will probably see many more wealthy individuals arrive and join the market, especially when you look at the MTN campaign.
" MTN launches into a mbadive public campaign and so we are more likely many individual shareholders will be on their books, "she said.
With a subscriber base of more than 12.9 million in September last year, she estimates that obtaining only half of that number to attend the introduction in scholarship can increase its success rate.
She also mentioned pension funds and non-residents investors are the key to the success of the offer
On the combined issues of 4.67 billion GH ¢ on liquidity for future transactions Ms. Dagadu says she's not planning a liquidity crisis.
"The fact that you have five cedis today does not mean that your five cedis will dry up next month.If you have a good savings plan, you will always have the same. money every month
"Pension funds will continue to receive funds every month and this is not something that will dry up cash," she said .– GB
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