Delisting of UT Bank will not affect Stock Market performance – Former SEC Boss

 

Former Director General of Securities Exchange Commission, Dr. Adu Annane Antwi, has revealed that the delisting of UT Bank from the Ghana Stock Market will not have any major effect on the operation and performance of stocks on the country’s securities market.

According to him, although there would not be any serious challenges facing the smooth performance of the securities on the stock market, following the exit of the UT Bank from the stock market, reduction of players on the market should be expected, a situation he confirmed as not encouraging.

Following early Monday announcement by the Central Bank that it had revoked the licenses of UT and Capital Bank to operate as commercial banks due to their excessive liabilities and their failure to improve their balance sheet, UT Bank, which was co-founded by Joseph Nsonamoah and Prince Kofi Amoabeng in 1997, as Unique Trust Financial Services, listed on the Ghana Stock Exchange under the holding company, UT Holdings Limited and trading on the stock market under the symbol: UTB Limited, has had its listing status suspended indefinitely by the Ghana Stock Exchange.

A statement released by the GSE Monday said UT Bank breached the GSE’s Listing Rules by failing to publish its financial results since the end of its financial year, December 31, 2015.

The non-publication is in breach of the continuing listing obligations under the GSE Listing Rules. The GSE has collaborated closely with Bank of Ghana (BoG), the regulator for banks, on this matter,” the statement said.

Information available to this paper also indicates that the Ghana Stock Exchange (GSE) has put on hold trading in UT Bank shares following the liquidation and subsequent acquisition by GCB Bank Limited ascribed as the second largest bank in Ghana by net profit and total assets.

Speaking to this paper, Mr. Anane Antwi explained that had GCB Bank per the arrangements been allowed to take over all the assets and liabilities of the two of defunct banks then chances of growth is surely to be expected on the stock market.

“We always expect lots of companies listing on the stock market so as to enable it expand and grow with time, and so if you get a company delisted then it’s painful. But with the delisting of this company, information available currently is scanty and you see had GCB Bank   taking over all the assets and liabilities of UT and Capital Bank, and remain as one big bank listed on the Ghana Stock Exchange then we would have seen some massive improvement of the stock market,”

The former Director General described the current development on the country’s securities market as unfortunate and urged shareholders to be patient as they wait for more detailed information from the Securities and Exchange Commission.

 

 

Source: therepublicnewsonline.com

The Republic News Online

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