Five companies suspended from the Ghana Stock Exchange

Five companies listed on the Ghana Stock Exchange (GSE) will from Monday 28th August 2017 be suspended from trading activities.

The development follows the failure of the five companies to meet their continued listing requirement on the country’s stock exchange.

The suspended companies include African Champion Industry Limited (ACI), Clydestone (Ghana) Limited, Golden Web Limited, Pioneer Kitchenware Limited and Transaction Solutions Limited (TRANSOL).

Speaking to the media on the decision of the GSE management - Managing Director of the Ghana Stock Exchange, Kofi Yamoah said, they had been in touch with the five companies over a period of time using various means to pressurize them to do something about their prolonged default.

He added that the suspension came as a last resort and is expected to last till September 8th; on, or before which the companies are expected to meet the obligations for their listing to redeem their status on the GSE.

Two weeks ago (prior to the revocation of their licenses by the Bank of Ghana), the GSE had also suspended the UT and Capital bank respectively from trading activities in the nation’s stock market.

Commenting briefly on the collapsed UT and Capital bank earlier suspension, Mr. Yamoah reiterated that the GSE had “wrote to them and met them several times about their plans for providing the information that hadn’t come”.

He added that on all occasions of their correspondence with both banks, they copied the Banking supervision of the Bank of Ghana as primary regulators of the sector in which the banks were operating as well as the Security and Exchange Commission (SEC).

While the banks’ suspension and forced liquidation had obvious consequences, it is now not certain what the impact of suspending these five companies (though on a short-term) will be on the market or economy at large.

 

www.primenewsghana.com/ Ghana News