According to him, the objectives to help Small and Medium Scale Enterprises (SMEs) increase their capital and expand, could largely be achieved if such fundamentals are put in place.

“The industry players and the stock exchange altogether should educate investors of prospective to list on the GAX,…both education and improvement will add up to increase the throughput in the GAX,” Dr. Asembri stated.

Dr. Asembri who has over four decades’ experience in the capital market, maintains that though the alternative market is a platform for securing funding, the urge to undertake such activities will be largely influenced by an economic drive for expansion.

“If there is the opportunity to expand then you need more money and then you go and raise funds. But if the companies are not growing fast, then obviously they will not need more funding. This appears like the proverbial chicken and egg issue… we are looking at the situation where we expect the GAX to grow but the fundamentals should be there for the companies to want to source funding,”

Being in existence for about three years now, the GAX currently has only four equities listed with five others issuing bonds to raise capital.

But industry watchers expect the numbers to increase to promote the capital market.

Dr. Asembri is however confident the fortunes of the GAX will turn around soon.

“When you’re looking at companies coming onto the Exchange; whether GAX or the broader market, that will be the time that they need funding. The need for funding will also be influenced by the need to expand the companies,” he opined.

Dr. Asembri who doubles as a former  for the Securities and Exchange Commission, was speaking at this year’s Ghana Investment Awards where he was awarded the Ultimate award of the lifetime achiever’s prize.

According to the organizers of the awards, the Premier Network Investment Club, Dr. Asembri’s honor was largely influenced by his over four decades’ contribution to the capital market in various categories.

A total of seven investment companies were awarded in various categories at this year’s awards.

Though there was no overall investment company award this time round, First Banc topped three categories to emerge as the company with the highest number of awards at the event.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Economic fundamentals will boost GAX – SEC Commissioner appeared first on Citi 97.3 FM - Relevant Radio. Always.

Information available to Citi Business News indicates that the bank is likely to complete its process by the end of this year after revising its issuing calendar with the industry regulator.

The Securities and Exchange Commission (SEC), intensified its appeal for multinationals to list on the local bourse after Nigeria’s Legislature passed a law to make it compulsory for multinationals to list on the country’s stock market.

According to the Director General of SEC, Dr. Adu Anane Antwi, the coming onboard of multinationals like Access Bank will promote local participation and stabilize the country’s currency.

“The advocacy continues and we believe that we will get some of the companies responding positively. For example Access bank which is a Nigerian owned bank is preparing to float parts of its shares and list on the Ghana Stock Exchange…We are hoping that other companies will heed to the appeal and do same,” Dr. Anane Antwi opined.

Currently, the stock market comprises 42 companies including multinationals like Tullow Oil Plc and Standard Chartered Bank.

Access bank’s moves when successful will make it the first Nigerian based bank to list on Ghana’s stock exchange and the tenth bank to list on the bourse.

The bank in December 2015, was the 6^th most profitable bank in the country improving a step up from the previous year.

In the same year, it also increased its share of industry deposits from 3.5% to 4.5% placing it at number ten in deposit share ranking.

Citi Business News understands Access bank will cede up to 32 percent of its stake to locals.

Some customers of Access Bank who have been speaking to Citi Business News expressed mixed reactions on purchasing shares in the bank.

Meanwhile Dr. Adu Anane Antwi believes making it compulsory for multinationals like Access Bank to cede parts of ownership to locals will be beneficial.

“When it is also listed on the GSE, it will deepen the exchange, increase the size and make it competitive to other bigger exchanges even in Africa,” he stated.

Access bank commenced operations in Ghana in May 2009 as a full service commercial bank after acquiring Intercontinental Bank in 2012, making it one of the largest retail banks in Ghana.

Access bank’s stated capital is 118 million cedis.

More multinationals to list?

It is however worth to note that none of the five telecommunication companies are listed on the stock market.

However, MTN recently announced a decision to cede 35 percent of its stake in Ghana to raise capital and secure its 4G spectrum license.

But Citi Business News understands that MTN is yet to conclude processes to allow it sell thirty-five percent of its stake in Ghana.

It is not certain how much MTN may float to the public but the Director General of SEC, Dr. Adu Anane Antwi explains, his outfit would have preferred a complete listing by MTN on the domestic bourse.

“It is welcoming news as Ghanaians will own the shares but it is more beneficial to the entire market when it is listed on the Ghana Stock Exchange,” he said.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Access Bank to list on the Ghana Stock Exchange appeared first on Citi 97.3 FM - Relevant Radio. Always.

It comes on the back of the passage of the Securities Industry Bill (SIB) by Parliament in July this year.

Though the SEC is awaiting the Presidential assent for the Act to become effective, the Deputy Director General, Legal at SEC, Alexander Williams, tells Citi Business News he is highly confident of some multinationals listing next year.

He spoke to Citi Business News at the sidelines of the launch of the IPO for TTL Capital’s ‘TTL Income Haven fund’.

“We are looking forward to that in 2017. Infact there are some in the pipeline whose IPOs are being processed and their names will come up in due time,” he stated.

Mr. Williams added, “But I believe that in 2017, we are going to see a lot more people in terms of multinationals coming onto the capital market.”

The Director General of SEC, Adu Anane Antwi in July this year intensified lobbying to get multinationals to list on the GSE.

His renewed calls followed a consideration by Nigeria’s legislature to pass a law to get multinationals list on the Nigerian Stock Exchange (NSE).

Dr. Adu Anane Antwi argued that the move will help reduce the foreign exchange losses facing the country.

“One of the challenges that we face with our currency is the amount of dividends that flows out of the country every year. If we get some of these companies list part of their shares on the Ghana Stock Exchange, at least parts of the foreign exchange that they take every year in terms of dividends, will remain here and that should help us manage our foreign exchange value and the rate,” he stated.

‘Ineffective’ investment decisions a challenge to SEC

Meanwhile SEC says the apparent ineffective investment decisions by some fund managers continue as one of the challenges facing the sector.

The Deputy Director General, Legal, Alexander Williams asserts that not only do investment companies face the challenge of meeting the investment obligations to their customers, but also  the lack of confidence that it generates in the sector.

However indicates that his outfit has begun discussions with various fund managers which should ultimately reverse the rather worrying trend.

“Quite a number of people are investing in products that don’t bring the returns that they need to pay off their investors and that is worrisome to us. Because once you invest, you will need to get back the returns when you need it and that is what we are working on,” the Deputy SEC Boss remarked.

“I believe that we have had a number of meetings with the brokerage firms and they’ve realized where the defects are and are all working on it together with the regulator,” he added.

TTL Capital launches IPO

Managers of TTL Capital explained that the decision to launch its IPO for the Income Haven fund was backed by a shift towards the fixed investment market.

They further explained, the fund seeks to generate a high level of current income, security of principal and growth amidst liquidity.

“The fixed income market is currently lucrative since the equity investment is declining and entering the negatives so that is what prompted us to undertake this mutual fund in a fixed income light so that we can bring in investors,” Adjoa Owusu-Takyi Head of Asset Management and Business Development at TTL Capital told Citi Business News.

The offer which is targeting 100,000 cedis minimum, opens on the 16^th of September and ends on the 6^th of October, 2016.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post SEC advances moves for multinationals to list from 2017 appeared first on Citi 97.3 FM - Relevant Radio. Always.