Five companies that failed to meet their listing obligations were at the weekend suspended by the Ghana Stock Exchange (GSE), local media reported here Monday.

The GSE, in a statement to state-run Daily Graphic, said the five had been suspended with effect from Monday, August 28, 2017, for failing to meet what it called “continuing listing obligations in spite of several promptings to do so.”

The GSE named the defaulting members as African Champion Industry Limited(ACL); Clydestone (Ghana) Limited (CLYD); Golden Web Limited (GWEB); Pioneer Kitchenware Limited( PKL); and Transaction Solutions Limited.

Their breaches included “failure to submit financial reports, non-payment of annual listing fees, and failure to conduct annual general meetings (AGMs)”.

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The suspension will last until September 8, 2017, during which the GSE expects the companies to rectify the said anomalies.
“Failure to do so will attract further sanctions as per the GSE Listing Rule,” the statement stated.

The action brings the number of equities listed on the main GSE down to 32, with the Head of Research at Databank, Alex Boahen explaining that the suspension would have no significant impact on trading activities of the exchange.

The GSE said the suspension however meant that shareholders of the affected companies would “neither be able to sell nor buy shares during the time of suspension.”

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Boahen however said the GSE action could provide the defaulting companies the “opportunity to consider migrating to the Ghana Alternative Market (GAM) where regulations were comparatively relaxed.”

“Because the main market (GSE) has stringent reporting criteria for the companies, this suspension may present the companies with a good opportunity to repackage themselves and go to the GAX,” added Boahen. Enditem

Source: Xinhua/NewsGhana.com.gh