Archive for the 'Stock Exchanges' Category

Mobile phone app for trading on Zimbabwe securities exchanges

Investors can check their portfolios and send orders to their stockbrokers on their smartphones in Zimbabwe with an app called C-Trade from today (4 July). C-Trade is an online and mobile trading platform for shares on the Zimbabwe Stock Exchange (ZSE) and the second licensed exchange, the Financial Securities Exchange (FINSEC).

According to an article in the Herald newspaper, C-Trade is for financial inclusion in Africa: “The platform will enable investors, both local and foreign to purchase securities from anywhere in the world anytime, using mobile devices. The initiative is being led by capital markets regulator, Securities Exchange Commission of Zimbabwe (SECZ), and seeks to promote financial inclusion by encouraging participation by the smallest retail investor.”

The Herald newspaper reported SECZ chief executive Tafadzwa Chinamo saying that President Emmerson Mnangagwa had agreed to launch the programme. “After that what you will be seeing more of is our campaign as SECZ to educate the public on what investing on the capital markets is about.”

“We have taken the issue of deepening and broadening the capital markets very seriously, to the extent that we added a new committee to our board of investor education.” In July 2017 Chinamo said SECZ had committed $300,000 to a campaign to get more people engaged in the capital market.

Escrow Systems headquartered in Zimbabwe has created the C-Trade programme to trade bonds and shares, using the same technology as Kenya’s world-first M-Akiba mobile Government bond sold on mobile phones to small investors in Kenya, from minimum denomination of $30. Here is our post on M-Akiba from October 2015 and a Reuters story on the eventual M-Akiba launch in March 2017.

According to a report in Newsday, Escrow Group chief executive officer Collen Tapfumaneyi said: “C-Trade is a mobile trading platform and is combination of a number of systems that enable investors to access the securities market or capital markets popularly known as the stock to enable people buy shares and all that. It comes in three forms, USSD application which can be utilised by mobile network subscribers. We have Econet and Telecel, but we are about to finalise with NetOne as well so within a few days all three will be on board,” It is not restricted to local mobile operators to enable foreign investors, including those in Diaspora.

Trading is still through a stockbroker, as before, says Chinamo of SECZ: ”This application is essentially sold to a stock broker to give the brokers clients access to the market. Rules of the exchange are still valid. For your trade to go through, it needs the authenticity of your broker so the broker is still liable for your trade, settlement, clearing and feed.”

The platform allows easier access for smart-phone users to manage their portfolios when they are away from a desktop/laptop.

Escrow is offering it on revenue-sharing basis to users with “minimal or no costs to market participants” according to an older news story in Financial Gazette.

According to an article today in Newsday, there are 13 licensed stock-broking firms in Zimbabwe, of which 3 signed up to use C-Trade. Escrow’s Tapfumaneyi said they were still talking about sharing fees: “C-Trade acts as an agent for the broker. The broker will still earn his full revenue according to the fee charged. However, the brokers pay a fee to use the platform which is negotiable.

“What we are basically doing is get business for them and they keep their traditional business. But, if we get people registering online and placing orders online, all that traffic is being channelled through to the brokers which then gets channelled to the exchange. So we are basically an extension of the brokers,” he said.

“These orders, when they come to the brokers, is also the issue of evaluation and trading is not just picking an order from a client and sending it through. You have got to analyse the market and advise the client what the pricing should be and all that. So we still have that interface.”

The target for C_Trade is about 20,000 individual participants by year-end and an ultimate goal of 2 million people.

Meet FINSEC, Zimbabwe’s second securities exchange

Zimbabweans have a second option for trading securities, with an emphasis on financial inclusion and economic empowerment through capital markets. Financial Securities Exchange (Private) Limited (FINSEC) is licensed by the Securities and Exchange Commission of Zimbabwe as a securities exchange (alternative trading platform).

It was launched in December 2016 and is part of Escrow Group, which has interests in financial services and technology. According to Escrow website, it has offices in Kenya and Zambia. The group includes Corpserve Registrars, which is a share registrars company set up in 1997, with operations in Zimbabwe, Zambia, Malawi, Kenya and Tanzania.

According to the website: “FINSEC is a pioneer in the provision of alternative trading solutions aimed at automating activities of previously sidelined OTC (over-the-counter) markets. It offers a complete suite comprising Order Management, Matching Engine, Clearing, Settlement and Delivery. FINSEC is transforming markets with activities so far in Kenya, Uganda and Zimbabwe.”

FINSEC Zimbabwe reported record turnover of $1.2 million in November 2017, with total equity turnover of $3.1m from launch to early December 2017. Listings include bonds issued by Infrastructure Development Bank of Zimbabwe (IDBZ), and class B shares of Old Mutual Group. CEO Collen Tapfumaneyi forecast that bringing in mobile technology would boost volumes.

Microfinance company Untu Capital Ltd has raised $5m in medium-term notes on the platform, which it will use to finance micro, small and medium enterprises (MSMEs) in Zimbabwe. According to a story in Herald newspaper. It started with a $1m issue, followed with $2m and again with $2m in May-June 2018, which listed on FINSEC on 11 June 2018, paying a fixed coupon of 10% a year. The bonds are a financial inclusion tool, called “U-Gain” and partnered with Telecash and EcoCash to offer a minimum $50 issue, maturity date 10 June 2021, paying interest every 6 months. Untu was set up in 2009 and provides finance to MSMEs, including working capital, capital and investment and value added services.

According to a story on the Daily News website, the class B shares were created in 2011 when Old Mutual surrendered 25% of its issues shares to indigenous investors as part of the indigenization laws, including 11% to employees, 8% to pensioners and 3.5% to strategic investors and 2.5% to a special youth fund. On 25 June FINSEC announced that the shares were liberalized and could be bought and sold by investors who were not indigenous Zimbabweans, including foreign investors and all capital market participants.

FINSEC does electronic trading of different types of securities, and the FINSEC website reads: “..(it) integrates all market participants in real time via a robust and state-of-the-art web based technology. The market participants include but are not limited to securities dealers, custodians, asset managers, issuers, settlement banks, market makers, transfer secretaries and regulators.

“FINSEC offers an integrated market-place solution covering; order management; order routing; order matching; clearing and settlement; securities delivery; trade risk management; data analysis; surveillance; mobile trading; online trading and full reporting.” FINSEC manages the full cycle from investor creation to trade settlement with the involvement of custodians and settlement banks.

According to the FINSEC website, it hopes to focus primarily on retail investors. It says its alternative trading platform “emphasises that all investors make informed investment decisions based on thorough research, which includes evaluating a company’s disclosures and financial reports as well as the prices and market for the company’s securities”.

Trading is through stockbrokers and investor accounts have to be opened through stockbrokers and custodians. The only mentioned custodian is Three Anchor Investments, trading as Old Mutual Custodial Services and the only mentioned bank is CABS, a financial institution and subsidiary of Old Mutual.

FINSEC says it also has an investor relations portal where individuals can monitor their portfolios, update know your client (KYC) information and check inquiries. It provides online and mobile access.

Victoria Falls

Why Ethiopia needs a stock exchange as it liberalizes

One of Africa’s biggest economies. Ethiopia, is launching a giant privatization campaign that could be lead to transformation, growth and liberalization. But there is no Ethiopian securities exchange, meaning citizens and domestic savings institutions may not be able to participate and the economy will continue to suffer inefficiencies and lack of transparency.

On 5 June Prime Minister Abiy Ahmed and the ruling party EPRDF set headlines alight by announcing a decision to sell stakes in the telecoms monopoly, long a cash cow for the Government. Investors will also be invited to buy stakes in Ethiopian Airlines, one of Africa’s fastest-growing and best-run airlines.

Zemenedeh Negatu, chairman of Fairfax Africa Fund LLC, a U.S.-based investment firm, and a former Managing Partner of EY in Ethiopia, commented in the Wall Street Journal newspaper: “The new leadership in Addis is smartly modifying and adopting policies and strategies that will sustain Ethiopia’s growth. I also strongly believe that these enterprises should be privatized by listing their shares in a local stock market, which should be established as soon as possible.”

Ethiopia was the world’s 2nd fastest growing economy in 2017 with 10.9% growth, according to the International Monetary Fund, which forecasts 8.5% growth in 2018, after a decade of growing at nearly 10% a year.

According to a Reuters report by Aaron Maasho: “It is unclear whether the Government would consider licensing foreign mobile operators. Interest might be limited if the only option is a minority stake in the monopoly.

“Analysts have said the government’s move falls far short of enabling full competition by multinationals. They note that by selling minority stakes the EPRDF is underscoring its view that the state should be a key player in the economy.” However, he notes “the step is still radical for the EPRDF.. and could indicate how 41-year-old Abiy plans to steer the country.”

Abiy Ahmed took office in April. The announcement also included a peace deal with neighbouring Eritrea in line with a decision in year 2000 that would cede disputed territory.

Both Africa’s telecom giants MTN and Vodacom told Reuters they are interested. MTN says Ethiopia “would be a natural fit for MTN’s existing pan-African footprint.” And Vodacom said “Ethiopia is an attractive market so it follows that there would be interest”.

A statement after a day-long meeting of the EPRDF’s executive committee said economic reforms are needed to sustain economic growth. It referred to foreign exchange shortages that mean there are too few goods in shops. Economists estimate that foreign reserves cover less than 2 months of imports.

Much of Ethiopia’s growth and successes at rolling back poverty are linked to the ambitious road, rail and electricity infrastructure investment and building projects run by the Government, which pours revenues from its telecoms, airlines and other monopolies to this. There is an ambitious strategy to transform a nation, which on farming, into an industrialized nation where manufacturing provides expert earnings.

On 6 June, Abiy warned of the risks: “”It is progressive. This new economic decision will afford us the opportunity to resolve widespread unemployment, ease foreign currency shortages, and reduce weaknesses in market connectivity. However, unless implemented with skill, knowledge and focus, it can lead to a repeat of the pervasive theft seen in many African countries and a destruction of Ethiopia’s wealth.”

Charlie Robertson, global chief economist at Renaissance Capital, told Reuters: “”The Government is still deeply sceptical about capitalism and speculative investors.”

OPINION – A well run stock exchange is vital in Ethiopia’s successful privatization and transformation

The capital market will bring many benefits to Ethiopians and the economy. A stock exchange enables enterprises to raise capital to create growth, jobs and fight poverty through issuing shares (equity) to long-term investors who are ready to share the business risks. It provides a transparent and efficient market for raising hundreds of millions of long-term debt, including bonds for housing and infrastructure, as in neighbouring Kenya. It would amplify efforts by Ethiopia’s Government and banks to finance the ongoing giant growth potential.

A regulated stock exchange encourages savings and help investors channel these into the most productive enterprises, boosting market size and efficiency. It boosts transparency by requiring companies to publish audited trading information promptly and widely, sharing similar information benefits with smaller investors as the Ethiopian Commodity Exchange (ECX) brings to farmers – any by encouraging professional analysts.

Individual Ethiopians are very keen for additional places to grow their savings, some of which are held in cash or low yielding bank deposits. Like other African countries, Ethiopia has fast growing domestic investment funds at pension and insurance institutions, and these need a much wider choice of productive assets to invest into, offering diversification and growth while seeking to maintain the overall safety of the members’ funds.

There are many Ethiopians both at home and abroad with the skills and character to ensure that any Ethiopian exchange will be one of the best and biggest in Africa. Although speculative trading is expected, it is also a key contributor to market liquidity and efficiency, and ensuring a large and active enough domestic base will counter much of the overall market volatility. Regulation is also needed to protect investors by ensuring that only well run businesses with a good track record and management can offer shares to the public, contrary to many unregulated initial public offers that have happened.

A well run stock exchange is what Ethiopia needs to transform its economy, boost participation, investment and the private sector, and to encourage efficiency and jobs.

DISCLOSURE – The author has worked on proposals on a stock exchange in Ethiopia, including when he worked at EY, and has studied the background and potential of the capital market there.

Addis Ababa (photo credit Horn Affairs)

London Stock Exchange financing African growth

African companies listed or trading on the London Stock Exchange have a total market capitalization of over $200 billion ($271bn), and in the last 10 years have raised more than $16 bn on London’s markets. The 108 African companies is more than any other international market, according to a press release from the LSE.

There are 9 African sovereign bonds listed in London, from: Gabon, Ghana, Namibia, Nigeria and Zambia

According to Tom Attenborough, Head of International Business Development, London Stock Exchange, in an LSE press release: “The success of Vivo Energy’s IPO is a strong statement of international investor interest in building exposure to Africa. As a London-listed company, Vivo Energy, will gain access to the world’s most international market, as well as an unrivalled source of deep liquidity and new investors.

“London is a strong partner to African companies seeking to attract international investment.”

Paternoster Square with London Stock Exchange at right (credit: Wikipedia)

  • Also this month, May 2018, Angola launched a $3bn Eurobond on LSE, the country’s biggest international bond and the first international issuance since 2015.
  • In April the LSE Group, the Nairobi Securities Exchange and non-governmental organization FSD Africa signed a memorandum of understanding to explore the launch of LSEG’s business support and capital-raising programme, ELITE. In May, the first Kenyan company, Olsuswa Energy, joined the programme. So far 850 companies have joined the ELITE programme.
  • In November 2017, the LSE, Casablanca Stock Exchange and the Bourse Régionale des Valeurs Mobilières (BRVM) signed an agreement to roll out ELITE across West African markets, in a signing ceremony presided by Amadou Gon Coulibaly, Prime Minister of Côte d’Ivoire.
  • In June 2017, Nigeria raised $300m through its first Diaspora Bond on LSE, a retail bond aimed at Nigeria’s global expatriate community seeking to invest in their home country’s development. It was the first bond of its kind from sub-Saharan Africa.
  • In March 2017, LSE published its first “Companies to Inspire Africa” report, identifying hundreds of the fastest-growing and most dynamic private businesses across Africa. Vivo Energy is the first company in that report to follow up by listing on LSE.
  • In March 2016, LSEG established an Africa Advisory Group, bringing together 12 distinguished business leaders, policymakers and investors from across Africa, to discuss the challenges and opportunities presented by the development of the continent’s capital markets.
  • In November 2014, London Stock Exchange Group and The Nigerian Stock Exchange signed a capital markets agreement to support African companies seeking dual listings in London and Lagos. The agreement followed the implementation earlier in 2014 of a unique new cross-border settlement process between the UK and Nigeria.
  • In June 2014, LSEG signed a strategic agreement with Casablanca Stock Exchange to share its expertise on the full exchange business chain, from listing to trading, and from clearing to settlement and custody with a commitment to position Casablanca’s capital markets and financial infrastructure as a regional hub.
  • In April 2014, Nigerian oil and gas group Seplat was the first Nigerian company to simultaneously dual list equity shares in London and Nigeria and raised $500m in an IPO.

LSEG market infrastructure technology, supplied by Millennium IT of Sri Lanka, is deployed in more 12 African markets, including Botswana, Casablanca, Namibia and Johannesburg stock exchanges.

Malawi Stock Exchange to start automated trading in May

Malawi Stock Exchange is set to go live with an automated trading system (ATS) and today (30 April) is start date for dematerialization as shareholders move physical certificates onto the Reserve Bank of Malawi electronic Central Securities Depository (CSD). Trading on the African stock exchange is to be automated by end of May.

Malawi Stock Exchange (photo credit: The Times Malawi)

According to the announcement by MSE and RBM: “Electronic trading is expected to commence by end of May 2018 and only securities that have been transferred and registered in the CSD will be traded in the ATS. Going forward, after implementation of the systems, all new IPOs (initial public offers) and subsequent trading will be made in the CSD and the ATS, respectively.

“The CSD is commencing the dematerialization process of the existing paper certificates and therefore requires that shareholders open investor accounts and dematerialize their securities (migrating from paper-based title to electronic securities) in preparation for the trading of electronic-based securities following implementation of the systems.

“Current shareholders are consequently required to contact a registered stock broker or custodian to dematerialize their stock holdings. Stock holders will be required to complete a Stock Holding Declaration and Consent to Dematerialize form upon presentation of the physical certificates; a signed and stamped copy of the form will be provided to the holder. The dematerialization process will run from 30th April, 2018 to 30th September, 2018.

“The investing public is encouraged to open securities accounts (in the same manner that one opens a bank account) through a registered custodian or stock broker from 30th April, 2018 onwards and deposit their share certificates in such accounts. We strongly encourage investors to deposit their securities early in order to minimize inconveniences that holders may face when need to trade arises instead of waiting for the deadline. Investors in regularly trading counters are particularly encouraged to speed up the dematerialisation of the securities.”

Capizar ATS system by InfoTech
The new system is Capizar ATS supplied by InfoTech Group of Pakistan in partnership with local firm Unified Technologies Ltd for infrastructure, also supplying hardware for MSE. Amir Raza Khan, VP & Head of Capital Markets BU at InfoTech, commented in a press announcement: “It is a privilege to work and represent Pakistan on an international platform. We are extremely proud of the expansion InfoTech has made in African markets especially in the SADC region. I would like to congratulate the Reserve Bank of Malawi and wish them success in this new era of automated trading and hope this new direction will influence a rise in aggregate turnover as well as volumes traded.”

The project is part of the $28.2 million Financial Sector Technical Assistance Project funded by a World Bank loan, with the total project set to close on 29 June. The tender was advertised by RBM in November 2016 and a procurement document published by the World Bank puts the CDS cost at $399,000 and the ATS at $723,708, plus links and other costs.

$1.9 bn pensions and insurance
MSE was created in 1994 and started offering secondary market trading in Government of Malawi securities. It started trading equity in November 1996 when it listed National Insurance Company Limited (NICO). It is licensed under the Financial Services Act 2010 and operates under the Securities Act 2010 and the Companies Act 2013. CEO is John Robson Kamanga.

At 30 April there were 3 stockbrokers, and listings were 13 stocks and 2 Government of Malawi bonds. The most recent main board listing was FMBcapital Holdings in September 2017, breaking a 9-year listings drought since Telekom Networks Malawi listed in November 2008. No companies have yet listed on the Alternative Capital Market designed for smaller and medium enterprises (SMEs) to raise capital. FMBCH is based in Mauritius and is holding company for FMBcapital group with banking and financial operations in Botswana, Malawi, Mozambique, Zambia and Zimbabwe.

Reserve Bank of Malawi (RBM) Governor, Dalitso Kabambe, said the stock market has a critical role to play in development, according to local newspaper The Times. He said firms are need capital for expansion to increase output, but also funds are growing rapidly outside the stock exchange, especially in pension and life insurance assets. “It is estimated that, by next year, 2018, the country will have a combined total of pension funds and life insurance funds to the tune of MWK1.4 trillion ($1.9 billion), against a total equity at the MSE of MWK762bn ($1.0bn).

“This, if not addressed by listing more companies on the MSE, will likely cause sub-optimal asset allocation, liquidity issues and an asset bubble. We have to avoid this at all costs, and the development of a stock market is a sure way of meeting the objective,” he said.

He was also quoted in a local newspaper The Nation that the new ATS and CSD would enhance confidence for local and international investors.

London Stock Exchange appoints David Schwimmer as CEO

David Schwimmer, CEO of the London Stock Exchange from 1 August.

The London Stock Exchange has appointed 49-year-old David Schwimmer as its new CEO, starting on 1 August. He has been working for investment bank Goldman Sachs for the last 20 years. The news was released in an LSE press release on 13 April.

He replaces Xavier Rolet, who left the LSE in November as part of a governance crisis sparked by 5% shareholder TCI Fund Management. Since then David Warren has run LSE as interim chief executive and he will return to his job as LSE’s chief financial officer.
Schwimmer, based in New York, is the head of Goldman Sachs’ market structure business and metals and mining businesses.

Schwimmer’s career at Goldman Sachs includes: advising exchanges and stockbrokers, working as chief of staff to chief executive, Lloyd Blankfein, when he was the bank’s chief operating officer, jointly running the bank’s business in Russia (2006-2009) and then becoming head of metals and mining in 2011. He returned to advising exchanges in 2017 as he added the role of the head of market structure.

According to the LSE Chairman, Donald Brydon, in the press release: “David is a leader with great experience in the financial market infrastructure sector, which he has been closely involved in throughout his investment banking career, as well as capital markets experience in both developed and emerging markets. He is well known for his robust intellect and partnership approach with clients and colleagues alike.”

A key task will be to manage the Brexit transition, and defend the LSE’s position as the world’s biggest clearing house for derivative transactions against competition from European exchanges, particularly Germany’s Deutsche Börse. LSE controls London Clearing House (LCH), which processes about three-quarters of the €1 trillion-a-day ($1.2trn) clearing market for derivatives, acting as a middleman between buyers and sellers of complex contracts.

He has extensive experience in mergers and acquisitions and will be able to buy new companies in line with LSE strategy. According to the Financial Times Rolet had turned the LSE into a “£15bn ($21bn) European powerhouse via a string of deals”. A merger with Deutsche Börse AG failed in 2017 and there has been speculation that US group Intercontinental Exchange could bid for LSE, although ICE says that one issue is the UK’s future outside Brexit. Chicago Mercantile Exchange has also been described as a potential bidder.

It quotes Bill Brodsky, former chief executive of Cboe Global Markets: “He’s a very articulate, very intelligent, very engaging personality… David has a deep global markets background and is extremely knowledgeable about the industry. He is eminently qualified to lead London Stock Exchange Group.”

The LSE says Schwimmer will be paid £775,000 ($1.1m) plus a bonus opportunity of up to 225% and will receive £1.05m ($1.5m) to make up for not getting his 2018 bonus from the US investment bank, plus other incentives. He is a graduate in English from Yale and with a JD degree from Harvard Law School. His passions are baseball (Mets) and outdoors, according to Bloomberg.

Top learning on the future of African exchanges – BAFM seminar this week 19-20 April

The 7th Building African Financial Markets (BAFM) seminar has a top lineup and tomorrow (17 April) is the last day to register The seminar is part of the annual programme of capital markets development and synergies of the African Securities Exchanges Association and is also backed by the World Federation of Exchanges. It is hosted by Nairobi Securities Exchange, will be on 19-20 April at the Villa Rosa Kempinski Hotel in Nairobi.

Leading the programme will be William Ruto (Deputy President of Kenya), Geoff Odundo (CEO, Nairobi Securities Exchange), Samuel Kimani (Chairman of the Nairobi SE), Oscar Onyema (President of ASEA and CEO of the Nigerian Stock Exchange), Paul Muthaura (CEO of the Capital Markets Authority of Kenya).

Topics are focused on market structures, innovation, new technology and linkages, including top international speakers:

• Adaptive innovation and the blueprint for orderly markets in Africa – Siobhan Cleary (Head of Policy and Research, World Federation of Exchanges) and Stebbings Archie (Principal, Oliver Wyman)
• Building blocks for innovative markets: effective risk management for clearing and settlement, a CCP in a box – Stuart Turner (Founder, Avenir Technology)
• Building new markets in a frontier economy and the impact on indigenized solutions: The Kenyan experience – Terry Adembesa (Director, Derivatives Markets, Nairobi SE)
• Linking African exchanges organically – Selloua Chakri (Managing Director, SCL Advisory)
• Building blocks for innovative markets: A guide for managing cyber risk – Joseph Tegbe (Partner and Head of Technology Advisory at KPMG, Nigeria)
• FinTech as an enabler for sustainable development: An innovation showcase – Panel with moderator Catherine Karita (Executive Director at NIC Securities), Farida Bedwei (Co-Founder and Chief Technical Officer, Logiciel Ltd), David Waithaka (Chief Strategist at Cellulant Kenya), Candice Dott (Head of Market Development and Customer Experience across Africa, Thomson Reuters), Alex Siboe (Head of Digital Financial Services at KCB Bank Kenya) and Julianne Roberts (F3 Life)
• RegTech: Leveraging technology in the effective risk management and regulation of African capital markets – Michele Carlsson (Managing Director, Middle East and Africa, Nasdaq)
• Effective financial education: The role of emerging technology in contemporary Africa – Abimbola Ogunbanjo (Managing Partner, Chris Ogunbanjo & Co.)
• Financial innovations in SME financing: Opportunities for African MSMEs – Sofie Blakstad (CEO, Hiveonline)
• Disruptive technologies reshaping the future of African financial markets: M-Akiba – Irungu Waggema (Head of IT, Nairobi Securities Exchange)
• Impact of EU Regulation on African Capital Markets (EMIR, BMR, MIFID II, GDPR) – Anne Clayton (Head of Public Policy, Johannesburg Stock Exchange)
• Financing sustainable development: Product and market innovations – Anthony Miller (Coordinator at the Sustainable Stock Exchange Initiatives)
• Disruptive technologies: Blockchain – the future of finance or a flash in the pan? – panel with moderator Ade Bajomo (Executive Director, Information Technology and Operations, Access Bank), Reggie Middleton (CEO and Founder of Veritaseum), Abubakar Mayanja (MD of ABL), Adriana Marais (Head of Innovation SAP Africa) and Samuel Maina (Research Scientist at IBM Research Lab Africa)

It’s a key gathering for Africa’s securities exchanges and key learning for all interested in the future of capital markets and their role in African development. For more information and for bookings, rush to this registration link.

BRVM investment open days – 14 March Johannesburg

BRVM in Abidjan (photo Tom Minney African Capital Markets News)

One of the world’s most successful regional stock exchanges, linking eight West African countries with a stable currency and fast growth, will come to South Africa to outline investment opportunities. The Bourse Régionale des Valeurs Mobilières (BRVM), headquartered in investment destination Côte d’Ivoire, will meet South African fund managers and market experts on March 14 at “BRVM Investment Days in Johannesburg”. This exclusive investor forum is part of a global 2018 BRVM roadshow.

Edoh Kossi Amenounve, CEO of the BRVM, will outline strategic developments on the exchange, including: investor-friendly trading and disclosure, working with London and Casablanca stock exchanges to boost growth companies in the region, and a board for mining companies after big discoveries in the region.

Other speakers are:
• Dominic Bruynseels, Regional CEO West Africa for Standard Bank, which sees the potential for growth in the West African Economic and Monetary Union (WAEMU) region and opened its first branch in Côte d’Ivoire in August 2017
• Samira Mensah, Associate Director of Standard & Poor’s Global Ratings, with an overview of banks in the region as well as fixed income and other securities
• Michael Barnes, Head of Sales and Trading at stockbroker African Alliance, one of the leading South African stockbrokers for trading on the BRVM exchange.

The speakers will share insights on the economies – the IMF forecasts growth at 6.5% or 6.6% a year across the region until 2021 – and on sectors, shares and key investment themes. It is a unique opportunity for South African institutions to learn more about the potential of Africa as regional links become stronger.

WAEMU combines eight West African countries with a population of 110 million: Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. WAEMU shares a single currency, the CFA franc, which is linked to the value of the euro (EUR), and a single central bank and capital markets regulator.

Mr Amenounve says: “South African investors are taking increasing interest in the opportunities in Africa as the world’s long-term growth story. The West African region offers fast, diversified growth and interesting lessons on regional development and economic linkages. In our countries, demographics, development, technology and increasing productivity all offer opportunities and the regulated exchange market offers liquidity and support to investors.”

The BRVM has 45 listed companies and is Africa’s sixth biggest exchange in terms of market capitalization with $12.5 billion in shares listed at end December 2017, plus 32 government and corporate bonds and five sukuk. To register online, please visit www.brvminvestmentdays.org.

Contact person for all event-related questions: Ms. Aziza Albou Traore ceo@azmediaagency.com Tel: +1 646 3772178
For any event-related or media enquiries, please contact: Ms. Glynis Loizeau: glynis@azmediaagency.com Tel: +33-6-83-48-75-85

This event is organized by AZ Media Agency www.azmediaagency.com
Twitter @BRVM_UEMOA #BRVMInvestmentDays

Africa’s top stock exchange performance in 2017

Despite a great year on the main US markets in 2017, many African stock exchanges offered USD investors a higher return. Biggest gain in USD was the Malawi Stock Exchange index, which climbed by 56.0%. It was among 6 African exchanges that outperformed the tech-heavy Nasdaq, which scored a strong 28.2% gain in 2017.
Other leading African stock exchange indices included Ghana, up 43.8%, Uganda up 30.7%, Mauritius 29.9% and South Africa JSE All Share up 29.7%.
The Zimbabwe Stock Exchange Industrial Index climbed 124.2%. However, most analysts rebase the market using the Old Mutual Implied Rate (OMIR), comparing the price of Old Mutual shares listed on the Zimbabwe Stock Exchange with the same shares on the London Stock Exchange to act as an inflation adjustor, since local dollar values do not reflect international dollar values. On the OMIR basis, the ZSE still gained a creditable 28.5%.
Other leading African markets such as Nigeria (Main Board index up 25.4%, but still to gain its previous highs of April 2014 and 2008) and Egypt’s EGX 30 (up 24.1%) also delighted investors.

Source – index data from Bloomberg and stock exchange websites compiled by Securities Africa

Stockbroker Securities Africa (www.securitiesafrica.com) shed light on which of the major counters helped drive 2017 index performance:
• Botswana: Botswana Insurance Holdings Ltd (+14.2%), Barclays Bank of Botswana (+31.1%) and Choppies Enterprises (+9.0%) led the gains in the major names in Botswana.
• BRVM: Whilst Sonatel closed the year 11.29% higher, Ecobank Transnational Inc closed 17.8% lower in USD terms. The currency was also weaker (-10.44%) for the year, contributing to the decline in the USD value of the Index. This was the only Index that closed in negative territory in 2017.
• Egypt: Eastern Tobacco was the stand-out performer, closing the year up 229.3% in 2017.
• Ghana: Standard Chartered Bank was the main driver behind the GSE performance in 2017, gaining 95.7% in USD terms.
• Kenya: Telecom giant Safaricom closed the year 40.2% higher taking responsibility for a large part of the index performance.
• Malawi: Illovo Sugar (+50.4%) and Telekom Networks Malawi (+110.2%) were the two major movers in 2017 in USD.
• Mauritius: Heavyweights MCB Group and SBM Holdings gained 35.5% and 20.5% respectively.
• Morocco: The two banks, Attijariwafa Bank (+28.5%) and Banque Central Populaire (+14.3%) were the big name gainers in Morocco.
• Namibia: Namibia Breweries was the major contributor to the strong local index performance as it gained 55.1%.
• Nigeria: Dangcem (+15.4%), Nestle (+67.7%), Guaranty (+48.2%), Zenith (+55.4%) and Stanbic (+130.9%) contributed to a strong index performance in 2017.
• Rwanda: Bank of Kigali gained 26.7% to help the index close in the positive band.
• S. Africa: Naspers and Glencore led the big name gainers finishing the year 88.8% and 49.3% higher in USD terms.
• Tanzania: Tanzania Breweries and Tanzania Cigarette were the major name strong performers, gaining 20.2% and 52.6% respectively.
• Tunisia: Banque Internationale Arabe de Tunisie closed 31.4% higher and Attijari Bank followed suit, gaining 26.6%.
• Uganda: Stanbic Uganda (+9.9%) and Jubilee Holdings (+17.3%) were the major names that helped the index gain significantly during the period.
• Zambia: Standard Chartered Bank (+58.5%), Zambian Breweries (+13.0%) and Copperbelt Energy (+64.5%) were the major drivers behind the Lusaka Stock Exchanges performance.
• Zimbabwe: Using the Old Mutual Implied rate, the market closed 28.5% higher for 2017. The two major names in Zimbabwe, Delta and Econet, were up 77.8% (17.8% OMIR) and 216.7% (49.7% OMIR) respectively. British American Tobacco which closed the year 136.1% (31.2% OMIR) higher was also one of the best performing names.

Highest ranked African securities exchange websites

Which African stock exchange website gets the most traffic? According to www.Alexa.com, a respected benchmark of web traffic, in rankings today (9 January) the Nigerian Stock Exchange website (www.nse.com.ng) was ranked #83,112 busiest website in the world and #826 website in Nigeria. It has great user engagement, with 3.1 page-views per visitor and each visitor spends an average of 5 minutes 39 seconds on the site.

The next busiest African securities exchanges websites were Egyptian Exchange (www.egx.com.eg, climbing to rank #124,904), South Africa’s JSE (www.jse.co.za, #157,543), on a slow decline since June 2017 but also good user engagement, West Africa’s regional BRVM exchange (www.brvm.org, ranking climbing recently to #219,284) covering eight markets and Nairobi Securities Exchange (www.nse.co.ke) with ranking of #297,989.

(photo credit Nigerian Stock Exchange)

Last month in a press release from the Nigerian bourse Olumide Orojimi, Head, Corporate Communications, NSE, said: “We are delighted to see this increase in traffic to our website as it means that we are making the Nigerian capital market easily accessible to investors who are increasingly residing online.

“At the NSE, we are committed to bridging the information gap between the Exchange and market participants, knowing the high correlation between market information (stock market prices, market data, corporate actions and news) and decision making. We are glad our website is also helping us to achieve this.

The NSE has upgraded its website to be more friendly to users with mobile phones and tablets, and has boosted content and improved layout and navigation. Orojimi says: “The revamp was fuelled by feedback from users that wanted certain high demand pages easier to navigate and some key changes implemented. For example, using analytics from visits and usage of our website, we added filter functionality to the corporate disclosure page to enable users browse through results filed by listed companies easily. Our online visitors can now experience a more vibrant and seamless view of our offerings”.