Cal bank has blamed stock brokers for the fluctuating performance of its shares on the Ghana Stock Exchange.
[contextly_sidebar id=”9j7mxuf3ylmV1zY8xqN64nCTJc5vUrSR”]The share price of the bank is currently selling at 1 cedi 8 pesewas inching up by 4 pesewas since the beginning of the year.
The share price of stocks are usually determined by the performance of the company as well as the demand for that share which is usually triggered by speculation.
Cal Bank was the sixth most profitable bank in 2014, has a return on equity of 38%, return on assets of 7%, cost income ratio of 32%.
However the strong performance of the bank over the years has not reflected in the value of its shares on the bourse.
In an interview with Citi Business News on the sidelines of the facts behind the figures presentation at the stock exchange, the Managing Director of CAL Bank Frank Adu said the trend is not encouraging other companies to list on the bourse.
“I blame the brokers, they broker the shares, they make sure people buy and sell. Once there is activity then there is price discovery, then the market begin to recognize the performance? It is actually quite frustrating for an investor”, he stated.
“and the share price goes down , that is somewhat ridiculous ,one wonders whether there are other factors that play out that we are not aware of”, Frank Adu noted.
By: Rabiu Alhassan/citifmonline.com/Ghana