Business News of Monday, 5 September 2016
The Director – General of the Securities and Exchange Commission (SEC), Dr. Adu Anane Antwi, is calling on investment advisors to come up with innovative ways to attract investors to invest in banking stocks.
According to him though banking stocks have not performed well recently due to high Non Performing Loans (NPLs), current trends show a recovery in banking stocks.
Speaking to Citi Business News, the Director – General of SEC said the banking stocks have been the driver of the Ghana Stock Exchange.
“The banking stocks are the ones that generally have been driving the performance of the stock exchange but we all know that the economic situation is affecting many of the companies and therefore they are unable to service their debts. So that is a fact that we are all aware of that it is affecting the banks.”
But Dr. Adu Anane Antwi stated that “things seem to be turning around for the banks which will have a positive impact on their stocks.”
The SEC boss contends government’s commitment to clear the legacy debts owed banks by the power sector and the BDC’s is equally building trust in the banking sector and its stocks.
There is an ongoing debate on the viability of banking stocks as the sector is seen to be one of the high risk areas due to the rise in non performance loans among banks.
“But it is up to the investment advisors to come out with innovative ways to get investors to consider banking stocks. They have the license and are the professionals who have the insight and do research and analysis in the sector.
We advice generally that people should invest.” Dr Adu Anane Antwi stated.
This comes after an assertion from the chairman of IFS Capital Management Ltd, Samuel Agyapong Apenteng warned that banking stocks in the country are currently one of the high risk areas for fund managers to invest due to the rise in non performing loans among banks.
Speaking to Citi Business News during the Annual General Meetings of the three unit schemes managed by the IFS Capital Management Ltd, Samuel Agyapong Apenteng said the year under review saw banking stocks drop massively leading to the my -wealth unit trust fund having to move its funds to other areas.