Ghana exchange expects two listings in 2010
Gambia - Economic - 07-29-2010

Ghanaquotes stock exchange expects the local listing of London based Tullow Oil and a real estate company before the end of 2010, the first new listings in two years, its managing director said on 28 July 2010. There is no shortage of investor interest in stocks in Ghana, set to be the worldquotes fastest growing economy in 2011 once oil production starts, but only 35 companies are listed and liquidity is a constraint for many foreign funds. Managing Director Kofi Yamoah said the exchange had carried out an initial review of documentation for Tullowquotes listing and believed the next step required was approval from the oil companyquotes board.

Tullow, Europequotes largest independent oil explorer, is due to start production from the Jubliee field off Ghana in Q4 of 2010 and the IMF estimates oil will help propel Ghanaquotes growth to around 20% in 2011. Yamoah said he also expected real estate company Comet Properties to list this year and would target four new listings a year on the exchange from then on. quoteInto the next year and medium term, we expect to see many more of the banks, many of the insurance companies many more of other sectors that are not represented on this market, particularly mining and other issues,quote Yamoah said. quoteNot only will this market be attractive to the international investors but also to the country.quote

On a market where trading rarely tops a few hundred thousand dollars a day, Yamoah said he expected pension reforms would bring a significant increase in volumes. The reforms will let employers set up schemes managed by private fund managers instead of the state pension fund. quoteThat will revolutionise the market place,quote he said. He also said state pension firm SSNIT, which holds major stakes across listed companies but buys to hold instead of trades, had also indicated that it was going to change its strategy. quoteWe therefore expect them, going forward, to be much more active than they have been,quote he said.



Source: Reuters