The Ghana Stock Exchange (GSE) Council is expected to take a decision on whether share prices should be quoted to four or two decimal places.
At a meeting in Accra recently, involving GSE officials and the brokers, no decision to choose one of the two options was reached. The final decision must be made before the end of June.
However, in an interview with BusinessWeek, Philip Abodoh of First Atlantic Brokerage indicated that trading to two decimal places means there would be changes in value, in which investors would lose huge sums of their investment.
He cited, as an instance, the share price of Super Paper, which trades at ¢225 and when the new cedi is introduced will become 2.25 pesewas, thus causing investors to lose the 0.25 pesewas.
He noted however, that trading to four decimal places means that the losses in old currency and the gain in new cedis will be the same, and there will not be changes in value.
According to him, trading to four decimal places in the new cedi, the Super Paper share will be quoted at 0.0225 Ghana cedis, which means that there will be no drop in any figure.
He said the final decision by the Council would erase any doubts in investors’ mind.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
Latest Stories
-
CETAG threatens indefinite strike over breach of agreements
20 minutes -
Fifty 50 Club lauded for impactful social interventions
26 minutes -
Konongo and its environs risk water shortage as Owerri River ‘stops flowing’
37 minutes -
Dr. Stacy Amewoyi launches new books and expands philanthropic efforts across Ghana and US
43 minutes -
Hindsight: Legon Cities’ five years of fugazi money
57 minutes -
JoyNews’ Kwasi Debrah ties knot with Dr. Neta Pasram in beautiful ceremony
57 minutes -
Wimbledon winner Purcell admits anti-doping breach
1 hour -
Political party influence undermines leadership independence, says Prince Kofi Amoabeng
1 hour -
CHASS advises against reopening schools on Jan. 3 until financial arrears are cleared
2 hours -
Newmont’s Akyem Vocational Institute unveils battery-powered fufu machine at graduation ceremony
2 hours -
Newmont reinforces cultural heritage commitment in host communities
2 hours -
Oti Region records over 10 road accident deaths from January to September this year
2 hours -
Ecobank Ghana inaugurates ‘Ecobank Retirees Association’: A legacy of fellowship and service
2 hours -
Optimal OMD appoints Taniya Mondal as MD
2 hours -
Lekzy DeComic hailed for masterful emceeing at OB Amponsah’s comedy show
2 hours