Latest update November 23rd, 2024 1:00 AM
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GCCI urges overhaul of Guyana Stock Exchange amid complaints from Banks DIH
Kaieteur News – The Georgetown Chamber of Commerce and Industry (GCCI) has called for a comprehensive overhaul of the operations at the Guyana Stock Exchange (GSE), expressing deep concern over its current state and its impact on the local business community.
Georgetown Chamber of Commerce and Industry (GCCI)
Access to financing is a significant challenge for businesses in Guyana, and the GSE plays a crucial role in providing a transparent and efficient marketplace for companies to raise capital, invest, and grow. In a press statement on Monday, GCCI said it has consistently advocated for the reform of the capital markets and the stock exchange in Guyana to address issues related to infrastructure, technological advancements, and regulatory frameworks.
The lack of essential infrastructure and a modern regulatory framework at the GSE are seen as compromising the financial health of businesses, restricting their ability to attract investments, and hindering their growth potential, the GCCI said. The GCCI emphasises the urgency of rehabilitating the GSE to align with the nation’s rapid growth and development.
GCCI also called on the Guyana Association of Securities Companies and Intermediaries Inc., and the Guyana Securities Council (GSC) to prioritise the modernisation of GSE infrastructure, incorporating technologically advanced best practices to ensure a more efficient and transparent trading environment.
During the 68th Annual General Meeting of Banks DIH Limited on Saturday, concerns about the apparent lack of synchronization between positive company developments and share prices were raised. Banks DIH Chairman, Clifford Reis, expressed worry about the trading of shares on the GSE, noting that despite positive developments within the company, share values were not increasing as expected.
Reis highlighted the trading dynamics on the GSE, pointing out instances of shares being sold without substantial financial evidence. He proposed the establishment of an odd-lot market to prevent small transactions from impacting overall share values.
The lack of a new operational system since the GSE’s establishment in 1998 prompted Banks DIH to consider taking action to protect shareholders’ investments. Notably, Reis did not reveal what the company’s plan is to fix the aforementioned. The Chairman also addressed concerns about the last trades on the GSE consistently being the lowest, attributing it to the Stock Exchange publishing all securities transactions. Reis called on the Guyana Securities Council and GSE to fulfill their mandate for orderly market growth. Notably, the Chairman called for the implementation of an odd-lot market, as seen in other Caribbean territories, to safeguard pension schemes from financial hits due to declining share prices. He warned that companies with defined benefit schemes relying on shares could face challenges meeting obligations to pensioners without such market measures in place.
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