GSE automation attracts investors
Loading ...Top global investment companies such as Merrill Lynch and UBS Group will invest more on Ghana’s capital market after the automation of the Ghana Stock Exchange (GSE) is completed in June 2008, Dr. Salman Iqbal, Chief Executive Officer of Softech Systems, a partnering company of Infotech of Pakistan has said.
Dr. Iqbal whose company would begin work on automation of the Accra Bourse soon says automation of the trading platform would boost foreign investments immensely in Ghana since volume of trade would increase abundantly, citing an example of increased volume of trade on the Pakistani capital market from 1 million to 14 million shares when it was first automated.
Dr. Iqbal said this at the launch of GSE’s Automated Trading System Project yesterday in Accra.
Total market capitalization of the GSE as at the end of 2007 which stood at GH¢12.368 billion was more than total deposits of universal banks in the country.
Speaking at the launch, Kwadwo Baah Wiredu, Minister of Finance and Economic Planning said the capital market is a key component of the Ghanaian economy and as such government would always help with the expansion of the exchange, thus providing support for the automation of the trading platform or electronic trading.
“It was in this regard that government implemented recommendations to issue long term instruments as part of measures to lengthen the yield curve of government debt to serve as a benchmark for the pricing of medium to long-term corporate bonds as well as deepen the capital marketâ€.
He urged the exchange, dealers and the chosen vendor, that is Infotech and the automation implementation committee to strive to get the very best infrastructure for Ghana.
For his part, Managing Director of GSE, Kofi Yamoah said the automation trading platform would improve liquidity for retail investors as well as reduce risks associated with the market.
The GSE has almost reached an agreement with Infotech of Pakistan to provide an automated clearing and settlement system as well as depository.
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