The Managing Director of the Ghana Stock Exchange, Kofi Yamoah, says the suspension of trading in the shares of adb Bank is for information to sip through to the general investing public.
“When there is information asymmetry, the market can be abused, investors can be abused, and so between now and close of Thursday, we believe it is a sufficient time for the information to sip through and for people to seek clarity.”
Explaining to journalists at the Ghana Stock Exchange on the annulment of the shares in adb by the Bank of Ghana, Mr Yamoah said some liquidity support that went to the Unibank is the same money that was used to acquire those shares.
“It was not supposed to go to that purpose and so on the basis of that the annulment was done.”
He further explained that the Bank of Ghana is not questioning the listing of adb Bank on GSE.
“Their concern is about the purpose for which money was given and that money ended being used for a different purpose and on the basis of that, they have taken over their shares.”
On the issue if the annulment would hurt the capital market, the Managing Director said it is too early to determine.
And the reason of preventing any abuse is what has resulted in a suspension for three days.
The Ghana Stock Exchange in pursuant to Rule 7 and Rule 14 of its trading and listing rules has suspended trading in the shares of adb for three consecutive business days effective Tuesday, July 17, 2018.
By MyePaul Sowah|TV3|3news.com|Ghana