Management of the Ghana Stock Exchange (GSE) has suspended another company from trading activities on the bourse.
The suspended company is the Cocoa Processing Company (CPC): producers of the country’s flagship chocolate – the Golden Tree brands, over a sustained poor performance on the exchange market.
Speaking to the media on the development, Deputy Managing Director of the GSE, Ekow Afedzie said the measure was part of the regulator’s effort in improving the stock market.
When asked about why the move came suddenly, he said: “It’s normal. It is part of our enforcement obligationsâ€.
Some market analysts are of the view that the CPC’s suspension should be no surprise to the business public on the basis that, the company’s figures over the past months of the year been on the decline.
In fact, the processing firm is believed to lacking in capacity to even purchase its raw materials – cocoa from the COCOBOD.
However, other analyst still insist that prior to moves of this nature, the business public should be duly notified to enable existing investors to decide whether to keep their stakes, or sell them off at ‘scrap value’ ahead of a possible suspending from trading activities.
At the moment, the COCOBOD owns about 57% of CPC shares, Ministry of Finance – 26%, with SSNIT – 11%, while the remaining less than 10% are owned by individuals.