Portfolio investors on the Ghana Stock Exchange (GSE) lost over 50 per cent of their dollar investments last year, Mr Yeboa Amoa, Managing Director of the GSE said on Thursday.

Speaking at a symposium to mark the Exchange's 10th anniversary in Accra, Mr Amoa said this is because "the GSE operates in a fast shrinking economy...with deteriorating economic conditions and weak foreign reserves."

The topic for the symposium was "Ten Years of Capital market in Ghana - Challenges and Prospects."

Giving statistics to show the effects of the depreciation of the cedi on the Exchange's performance over the years, Mr Amoa said initial capitalisation of the GSE before Ashanti Goldfields (AGC) listed in May 1994, was 238 billion cedis (209 million dollars).

AGC's listing capitalisation of 1.5 billion dollars cushioned the GSE's capitalisation to a little over two trillion cedis (about 1.8 billion dollars).

"Today, the GSE market capitalisation is 3.6 trillion cedis, but this is equal only to 530 million dollars," he said.

"Meanwhile the AGC component of this has shrunk from the initial 1.5 billion dollars to 305 million dollars (2.1 trillion cedis)."

The Managing Director said the record of the Ghanaian stock market has not been the best so far since its market capitalisation is far less than the minimum five billion dollars that an emerging market needs to attract serious investors.

At the moment the exchange has only 22 listed companies and four listed bonds from one company, Home Finance Company.

Mr Amoa expressed regret at the absence of municipal bonds and government treasury instruments on the market, "though our cities and urban areas are crying for lots of money for social and economic infrastructure."

Out of the over 250 divestiture cases, only six ended on the Exchange as initial public offers, he stated, and expressed the hope that the new government will live up to its promises by creating wealth in a private-sector led strategy of national economic development.

Other speakers at the symposium called for reforms in economic policies, manufacturing and the industrial sector to help boost investor confidence in the economy.

Professor Ernest Ayittey of the Institute of Statistical, Social and Economic Research said the annual eight per cent growth in the Vision 2020, the former government's blueprint for socio-economic development, is achievable if the banking sector is assisted to reduce cost of operation and minimise interest rates.

He called for continued reforms that have specific goals to enable the country attract foreign direct investments.

Mr Andrew Quayson, former President of the Association of Ghana Industries, attributed the absence of industries on the bourse to most entrepreneurs' desire to hold on to their ownership.

He also criticised industrialists for lack of long-term strategic plans that can move their enterprises to earn required profits.

Mr Kwame Pianim, an Economic Consultant, called for transparency at all levels of the economy that encompasses individuals, the government and foreign investors.

He said there is the need to create a fair economic environment for investments by ensuring fiscal prudence and improved productivity.