African Securities Exchanges Association 2014 ASEA Y E A R B O O K 1 African Securities Exchanges Association asea member STATES TUNISIA MOROCCO ALGERIA L I B YA EGYPT CAPE VERDE M A U R I TA N I A SENEGAL MALI NIGER SUDAN GAMBIA NIGERIA GUINEA ETHIOPIA GUINEA B I S S AU SOMALIA UGANDA SIERRA LEONE K E N YA RWANDA LIBERIA C OT E D ’ I VO I R E GHANA TO G O TA N Z A N I A M A L AW I BENIN ANGOLA ZAMBIA MOZAMBIQUE NAMIBIA Z I M BA B W E M AU R I T I U S B OT S WA N A S WA Z I L A N D L E S OT H O asea member exchanges Botswana Stock Exchange Libyan Stock Market Bolsa De Valores De Cabo Verde Lusaka Stock Exchange Bourse Regionale Des Valeurs Mobilières Malawi Stock Exchange Bourse De Tunis Mozambique Stock Exchange Casablanca Stock Exchange Nairobi Securities Exchange Dar-Es Salaam Securities Exchange Nigerian Stock Exchange Douala Stock Exchange Stock Exchange Of Mauritius Egyptian Stock Exchange Tunis Stock Exchange Ghana Stock Exchange Namibian Stock Exchange Johannesburg Stock Exchange Uganda Securities Exchange Khartoum Stock Exchange Zimbabwe Stock Exchange Rwanda Stock Exchange Safe Asia (Associate Member) ASEA Y E A R B O O K 2 SOUTH AFRICA African Securities Exchanges Association Table of contents ASEA Members Country Map 2 ASEA Executive Commitee Members 4 Member Exchange Profiles 14 Botswana Stock Exchange 14 Bourse Regionale des Valeurs Mobilières 29 Bourse de Tunis 41 Casablanca Stock Exchange 55 Dar-es Salaam Stock Exchange 65 Douala Stock Exchange 75 Egyptian Stock Exchange 83 Ghana Stock Exchange 98 Johannesburg Stock Exchange 110 Rwanda Stock Exchange 136 Lusaka Stock Exchange 145 Malawi Stock Exchange 154 Stock Exchange of Mauritius 161 Mozambique Stock Exchange 172 Nairobi Securities Exchange 181 The Namibia Stock Exchange 193 Nigerian Stock Exchange 202 Uganda Securities Exchange 213 Zimbabwe Stock Exchange 221 Khartoum Stock Exchange 232 ASEA Y E A R B O O K 3 African Securities Exchanges Association ASEA Y E A R B O O K Profiles OF THE executive Committee members 4 African Securities Exchanges Association Sunil Benimadhu Sunil Benimadhu has been in office as Chief Executive of the Stock Exchange of Mauritius (SEM) since May 1998 after having held various positions in the Securities Industry. Sunil has played an instrumental role in uplifting the operational, technical and regulatory infrastructure of the SEM and contributed to its emergence as one of the leading Exchanges in Africa. Sunil is currently the President of the African Securities Exchanges Association (ASEA) an association of 23 Exchanges operating on the continent. Sunil is a regular speaker on emerging markets and on African markets in international stock exchange conferences. Before joining the Stock Exchange of Mauritius, Sunil Benimadhu worked in the Treasury Department of the African Development Bank (ADB) from February 1997 to April 1998, where he managed the Bank’s assets on international fixed-income markets. Sunil Benimadhu was the General Manager of the National Mutual Fund Limited between December 1992 and February 1997. He played an instrumental role in the structuring, marketing and setting up of the National Investment Trust Limited, one of the largest investment trusts listed on the Stock Exchange of Mauritius. Sunil Benimadhu holds a MBA in Finance and Investment from the University of Illinois, United States. He also holds a D.E.A in Development Economics and a Maîtrise in Macro-Economics from the University of Aix-Marseille, France. ASEA Y E A R B O O K 5 African Securities Exchanges Association Oscar Onyema Oscar Onyema is the Chief Executive Officer of The Nigerian Stock Exchange, a position he assumed in April 2011. Oscar Onyema is the Chief Executive Officer of The Nigerian Stock Exchange, a position he assumed in April 2011. Prior to this role, he served for over 20 years in United States financial markets and the Nigerian information technology sector. Mr. Onyema is the Chairman of Central Securities Clearing System (CSCS) Limited, the clearing house for the Nigerian capital market; he is also a Council member of the Chartered Institute of Stockbrokers of Nigeria (CIS). He is the Vice President of the African Securities Exchanges Association (ASEA) and Chairman of the West African Capital Markets Integration Council (WACMIC). ASEA Y E A R B O O K In 2009, Mr. Onyema founded Market Strategists LLC and consulted under the Gerson Lehrman Group in the United States, successfully enabling decision-makers at investment firms and corporations better understand financial products, services, companies, and issues in global financial markets. Mr. Onyema served as the Senior Vice President and Chief Administrative Officer at American Stock Exchange (Amex), which he joined in 2001. He was the first person of colour to hold that position, and was instrumental in integrating the Amex equity business into the NYSE Euronext equity business after their acquisition of Amex in 2008. He then managed the NYSE Amex equity trading business, which he helped position as a premier market for small and mid-cap securities. 6 For approximately five years, Mr. Onyema served as Adjunct Lecturer of Economics at Pace University, New York. In 2008, he received the Financial Industry Regulatory Authority (FINRA) Series 7, 24 and 63 brokerage licenses through Seamount Execution Services LLC, a FINRA member firm in New York. He remains active in the Security Traders Association of New York, and in the Securities Industry and Financial Markets Association, USA. In the late 1990s, he held various positions at New York Mercantile Exchange where he managed futures market structure initiatives. He started his post-NYSC career in Nigeria at Data Processing Maintenance and Services Ltd. (an IBM business partner) where he sold mid-range IBM systems. EDUCATION Mr. Onyema holds an MBA in Finance and Investments from Baruch College, New York. He received his Bachelor’s degree in Computer Engineering from Obafemi Awolowo University, Ile-Ife, Nigeria. African Securities Exchanges Association Geoff Rothschild Geoff Rothschild is a past Chairman of the JSE and was a member of the board from 1991 - 2008 Geoff Rothschild is a past Chairman of the JSE and was a member of the board from 1991 - 2008. Geoff currently holds the position of Head: Government and International Affairs promoting the JSE. After qualifying as a Chartered Accountant he spent 30 years in the stockbroking industry with Sasfin Frankel Pollak Securities. Initially he was in charge of administration, followed by the positions of Financial Director, Joint Managing Director and finally Marketing Director. The positions he holds:On African related bodies are: • • • • • • • • • • Executive Committee member of the African Securities Exchange Association (ASEA); The JSE’s Representative on the Committee of SADC Stock Exchanges (CoSSE); Director of the NEPAD Business Foundation and Chairman of their Operating Committee; Council Member of the National Advisory Council for Innovation (NACI), which advises the Minister of Science and Technology An Honorary Fellow of the Da Vinci Institute of Technology Trustee of Brand South Africa An Adviser to Brand Africa Director on the NOAH (Nurturing Orphans of Aids for Humanity) Board Patron of Education Africa (EA) Patron of The Nelson Mandela Children’s Hospital (NMCH) In addition, he also assists various charitable organisations such as CHOC. ASEA Y E A R B O O K 7 African Securities Exchanges Association Ekow Afedzie Ekow Afedzie is also a member of The Chartered Institute of Marketing, Ghana. Ekow Afedzie is currently the Deputy Managing Director of the Ghana Stock Exchange. He was educated at the University of Ghana, Legon, where he obtained a Master’s Degree in Business Administration and an MA in Economic Policy Management. He is also a member of The Chartered Institute of Marketing, Ghana. He joined the Ghana Stock Exchange in 1990 when it was established and has served as the Head of Marketing, Research and Systems, then the General Manager before becoming the Deputy Managing Director of the Exchange. He is the immediate past Vice President of the African Securities Exchanges Association (ASEA) and currently a member of the Executive Committee of ASEA. ASEA Y E A R B O O K Mr. Afedzie has also made contributions to local and international research on stock markets, and presented papers on stock market operations at many local and international fora. He serves on the Board of the GSE Securities Depository Company Ltd. as well as a member of the Ghana Alternative Market (GAX) Governing Committee. 8 African Securities Exchanges Association Peter Mwangi Peter Mwangi is the Chief Executive of the Nairobi Securities Exchange. He is also a Director of the Central Depository and Settlement Corporation in Kenya Peter Mwangi is the Chief Executive of the Nairobi Securities Exchange. He is also a director of the Central Depository and Settlement Corporation Ltd in Kenya, and a Member of the Executive Committees of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA). Before joining the Exchange, Peter was the Managing Director of Centum Investment Company Ltd, the largest publicly quoted investment company in the East African region, from 2004 to 2008. He started his career in the Kenya Air Force where he worked for 5 years and left having attained the rank of Captain. Peter holds a Bachelor of Science Degree in Electrical Engineering from the University of Nairobi. He is a member of the CFA Institute, the CFA Society East Africa, Institute of Certified Public Accountants of Kenya, Institute of Certified Public Secretaries of Kenya, Institute of Directors of Kenya and the Kenya Institute of Management. ASEA Y E A R B O O K 9 African Securities Exchanges Association Karim Hajji Karim Hajji is the CEO of the Casablanca Stock Exchange, one of the largest exchange in Africa, and a member of the World Federation of Exchanges. Karim Hajji is the CEO of the Casablanca Stock Exchange, one of the largest exchange in Africa, and a member of the World Federation of Exchanges. In 2011, he joined the HOPE Global Board of Advisors and was appointed Chairman of the Executive Committee of the Association of African French speaking Exchanges. ASEA Y E A R B O O K Prior to joining CSE in April 2009, he was Chairman and CEO of Atlas Capital Group, a well respected, independent investment bank, active in both corporate finance and asset management, which he had founded in 1999. After an 8 year international career at Eli Lilly and Co in the US then in Italy and Switzerland, he had joined the ONA Group, Morocco’s largest conglomerate, in 1990 as advisor to the Chairman, then General Manager of an affiliate in Monaco and finally Group CFO in 1994. Karim Hajji holds an MBA from New York University’s Stern School, a diploma from “Institut d’Etudes Politiques de Paris” and a Master’s degree in capital markets from the University of Paris-IX Dauphine. 10 African Securities Exchanges Association Mohamed Omran Mohammed Omran is the Chairman of the Egyptian Exchange and Professor of Finance at the Arab Academy for Science and Technology. The Chairman of the Egyptian Exchange and Professor of Finance at the Arab Academy for Science and Technology. Prior to his current job, he served as a Vice Chairman for Operation of the Insurance Holding Company for one year and a Vice Chairman of the Egyptian Exchange for four years from 2006-2010. Professor Omran holds an MSc from Cairo University and Ph.D. in Finance from the University of Plymouth. UK. He was a visiting Professor in several research and academic institutions such as University of Plymouth, University of Oklahoma, the World Bank, University of Laval, and Vaasa University. He served several years as an Economist at both the Arab Monetary Fund in Abu Dhabi and the International Monetary Fund in Washington D.C. He was an advisor to the Minister of Investment and an Acting Executive Director of the Egyptian Institute of Directors. Professor Omran had been awarded several research grants and prizes, and he was a Fullbright Scholar and he is a Research Fellow at the Economic Research Forum. ASEA Y E A R B O O K He served as reviewer for more than a dozen of Economics and Finance Journals. Professor Omran specializes in financial markets, corporate governance, corporate finance and privatization concentrating on the MENA region. He authored and co-authored around 40 papers and his work appears in several international Economics and Finance Journals such as: Journal of Financial Research, Journal of Comparative Economics, Journal of International Financial Markets, Institutions and Money, World Development, International Review of Law and Economics, Multinational Finance Journal, International Review of Financial Analysis, Journal of Investing, Emerging Market Review, International Journal of Business, Review of Accounting and Finance, International Journal of Theoretical and Applied Finance, and Global Finance Journal 11 African Securities Exchanges Association Innocent D. Dankaine Innocent D. Dankaine is the Acting Chief Executive and Head of Products & Markets at the Uganda Securities Exchange Innocent D. Dankaine is the Acting Chief Executive and Head of Products & Markets at the Uganda Securities Exchange, where among other duties he is responsible for raising the public profile of the exchange, increasing trading revenues, and multiplying the number of securities holders actively participating in the market. Until June 2012, Mr. Dankaine served as Finance and Investment Manager of National Housing & Construction Co. Ltd., where he was responsible for developing financing solutions, evaluation and risk management for projects worth US$ 100 million. He also served as Assistant Manager – Financial Services Audit with PriceWaterhouseCoopers in Dublin, Ireland, and as an audit executive in the Financial Services department of the UK firm of Ernst & Young LLP. ASEA Y E A R B O O K Mr. Dankaine received a Bachelors degree in Commerce (accounting) from Makerere University with Honors. He is a member of the Institute of Certified Public Accountants of Uganda and is also a Certified Chartered Accountant (UK). 12 African Securities Exchanges Association ASEA Y E A R B O O K 13 African Securities Exchanges Association botswana stock exchange profile Website Market Regulator ASEA Y E A R B O O K Address 14 www.bse.co.bw Non-Bank Financial Institutions Regulatory Authority (NBFIRA) Exchange House, Plot 64511, Fairgrounds, Private Bag 00417, Gaborone Trading Session hours (local time) 10h30 - 13h30 (Official Trading Hours) Time Zone GMT +2 Contact Person for ASEA Tapiwa Tamocha Telephone (+267) 367 4400 Fax (+267) 318 0175 E-mail [email protected] Name of Local Currency Pula (BWP) Tax Rates (dividends, interest, capital gains) 7.5% withholding tax on dividend,10% on Interest, Listing of Foreign Domiciled Companies Available Commodities Exchange Not available African Securities Exchanges Association BOTSWANA STOCK EXCHANGE OVERVIEW The Botswana Stock Exchange (BSE) is Botswana’s national stock exchange given the responsibility to operate and regulate equity and the fixed interest security market. Formally established in 1989, the BSE trace its humble beginnings to when it was known as Botswana Share Market (BSM).At that time there was no formal stock exchange in Botswana and the BSM traded as an informal market. There were only 5 listed entities with a single broking firm i.e. Stock Brokers Botswana Ltd (SBB), which was also charged with facilitating trading on the exchange via the matching of orders. In order to encourage foreign investors to Botswana an interim exchange committee was set up in October 1990 with representatives from the private and public sector, including the secretary of the Zimbabwe Stock Exchange, the chief executive of SBB, the permanent secretary of the ministry of finance, and the Deputy Director of the Bank Supervision. The committee had the power to list and to de-list a stock, and was also responsible for ensuring that the BSE traded ethically [Ruben Lee, 1998]. The necessity to detach the running of the exchange from the broking business set in motion a process for the establishment of an independent exchange. In September 1994, the legislation to transform the BSM into a full exchange was passed by Parliament paving the way for the establishment of the Botswana Stock Exchange (BSE) where trading opened in November 1995. In March 1998, Ernst and Young took the full administration of the BSE. With effect from July 2001, a full time Chief Executive Officer was appointed with the aim of making the BSE completely independent. In April 2003, in order to better execute the affairs of the Exchange, better serve stakeholder, and be more responsive to global events and to remain competitive, the BSE discontinued the secretarial role of Ernst and Young Botswana to become a fully independent entity. The BSE continues to be pivotal to Botswana’s financial system, and in particular the capital market, as an avenue on which government, quasi- government and the private sector can raise debt and equity capital. The BSE plays host to the most pre-eminent companies doing business in Botswana. These companies represent a spectrum of industries and commerce; these are Banking, Financial Services, Wholesaling and Retailing, Tourism, Energy, Funeral Services, Property, Security and Information Technology. Currently, there are 35 listed entities in the BSE and comprise of 23 domestic and 12 foreign companies. BOTSWANA STOCK EXCHANGE REGULATORY ENVIRONMENT The main law which governs all the activities between the Exchange and its members, the proceedings of the Main Committee and its composition; the relationship between the Minister and the Exchange together with the relations between the Registrar, is the Botswana Stock Exchange Act No 11of 1994. The BSE is regulated by the Non Banking Financial Institutions Regulatory Authority. ASEA In addition, the Exchange has a set of Listing Requirements which provide the pre-listing Y E A R B O O K The members have promulgated Rules (Member Rules) which provide the requirements to be fulfilled for the securities listed and traded on the Exchange. Members Rules provide as the main objective thereof, “to operate a Stock Exchange in Botswana with due regard to the public interest to maintain fair and efficient dealing in securities for the protection of investors and regulate the affairs of members”. 15 African Securities Exchanges Association requirements and post listing requirements to be observed by the issuers of listed securities. The emphasis is to make sure issuers disclose as much information to the public and investors so that the latter can make informed investment decisions. OUR PRODUCTS The BSE aim to become a financial supermarket ,meaning it aims to provide the right kind of products to suit investor and issuer so that it meet growing customer demands and challenges of the globalisation of financial markets. This can be done through product innovation and diversification. Current products that can be listed include Equities, Corporate Bonds, Government Bonds, Exchange Trade Products and Commercial Papers while products being developed are Global Depository Receipts, Securitised Products and Derivatives. HIGHLIGHTS • • • • • • • • • DCI appreciated by 20.5 % Record turnover of P2.3 Bn achieved Trading Rules for both Equity and Debt Instruments in final stages of review Regular trading sessions in the ATS extended by a total of 1 hour, from 1hour 45minutes to 2 hours 45 minutes Shumba Coal listed on the Foreign Venture Board through private placement BSE launched 3 bond indices, the GovI, CorpI and the BBI (Composite) Botswana Bond Market Association (BBMA) officially registered Botswana Bond Market Association (BBMA) Committee appointed Number of Accounts opened in CSD increased by 13.5% to 20,027 accounts ACHIEVEMENTS The BSE has made progress in achieving strategic objectives as detailed in the BSE’s strategic plan. A synopsis of progress to date is given below: 1.1 INFRASTRUCTURE DEVELOPMENT • • • • • • CSD implemented in May 2008, followed by subsequent shares dematerialisation Electronic CSD account statements launched in 2010 Dematerialisation of bonds into the CSD System commenced in 2011 Automated Trading System (ATS) was implemented in August 2012 More than 20,027 investor accounts opened as at end of December 2013 More than 59.3% of domestic companies were dematerialised as at end of December 2013 ASEA Y E A R B O O K 1.2 REGULATION 16 • CSD rules drafted by BSE and implemented in 2008 • Settlement cycle of transactions in the BSE reduced from T+5 to T+4, and T+3 effective 2012 • Committee appointed by MFDP to review the draft Securities Bill completed its review and recommended several amendments which have now been incorporated into the draft bill. The Securities Bill is expected to be presented to Parliament in the second half of 2014 • Enactment of the Securities Bill will enable BSE to proceed on several development initiatives which will include the corporatization of the BSE • ATS Trading Rules for Debt and Equity instruments implemented in 2012 • Trading in the ATS extended by one hour effective 4 November in 2013 African Securities Exchanges Association 1.3 PRODUCT AND MARKET DEVELOPMENT • Series of road shows targeting retail investors held nationwide to educate general public about the stock market so to improve retail investor participation on the BSE • Dual listed the NewGold ETF in July 2010 and the Bettabeta Equally Weighted Top 40 ETF in May 2011 • Conceptualisation of Contract for Difference (CFDs) approved in 2013 • Three bond indices launched in 2013 • Review of Debt Listing Requirements underway • Contract negotiation with international data vendors for dissemination of trading data secured, negotiations with others on-going 1.4 GOVERNANCE STRUCTURE • BSE Board Charter adopted • Differentiation between “independent” and “non independent” committee members made in the constitution of sub-committees 1.5 FINANCIAL RESOURCES • BSE fees on transactions rationalised to reduce dependence on government subvention as well as rationalisation of expenditure by benchmarking against other exchanges • BSE Strategic plan review in progress aimed at Commercialisation of the Exchange 1. MARKET PERFORMANCE 1.1 Domestic Company Indices The Domestic Company Index (DCI) closed the year at 9,053.4 points, its highest level since 21 November 2007, recording an increase of 20.5%. This is the highest annual appreciation in the DCI since 2007. The performance of the DCI in 2013, overshadowed its performance in 2012 when the DCI appreciated by 7.7%. The DCI signalled a recovery from the effects of the financial crisis in 2008 when it registered a positive growth in 3 consecutive years up to and including 2013. The Foreign Company Index (FCI) depreciated by 1.0% in Quarter 1, and by 0.2% in Quarters 2 and 3. The FCI however appreciated by 0.3% in Quarter 4. As at 31 December 2013 the FCI had declined by 1.0% to close the year at 1,583.5 points compared to a depreciation of 6.1% in 2012. Figure 1: Index Performance: 2009 to 2013 2011 6,970.9 8.7 2012 7,510.2 7.7 2013 9,053.4 20.5 1,418.3 19.0 1,673.9 18.0 1,703.9 1.8 1,599.5 (6.1) 1,583.5 (1.0) ASEA 2010 6,412.9 (11.4) Y E A R B O O K DCI % Change in DCI FCI % Change in FCI 2009 7,241.9 2.9 Source: BSE 17 African Securities Exchanges Association The modest appreciation in the DCI towards the end of 2012 resulted in the DCI picking up momentum in Quarter 1 of 2013, leading to an increase of 11.8%. The DCI further appreciated by 3.4% in Quarter 2, before experiencing a decline of 1.1% in Quarter 3. In Quarter 4, the DCI gained 5.3%. The Foreign Resources Sector Index (FRSI) closely reflected the growth pattern followed by the FCI given that the largest sector included in the FCI is the Resources sector. Figure 2 : Quarterly Performance of the DCI and FCI: 2013 DCI % Change in DCI FCI % Change in FCI Quarter 1 8,400.0 11.8 1,584.3 (1.0) Quarter 2 8,688.5 3.4 1,581.2 (0.2) Quarter 3 8,594.9 (1.1) 1,578.8 (0.2) Quarter 4 9,053.4 5.3 1,583.5 0.3 Source: BSE 1.2 MARKET TURNOVER 1.2.1Equity The year 2013 stands out as the year in which the BSE registered the highest turnover since its inception in 1989. The amount of turnover in 2013 is almost double the turnover recorded on the BSE in 2008 (highest up to 2013) and is 2.6 times the turnover in 2012. The volume of shares traded in 2013 was 1.7 times the volume in 2012. The year 2013 can also be described as a year in which the stability of turnover continued to improve, albeit marginally. ASEA Y E A R B O O K Figure 3 : Indicators of Liquidity: 2009 to 2013 Indicators 18 Indicators 2009 Turnover 763. 8 (P' Mn) Average Daily 3.1 Turnover (P 'Mn) Turnover/ Average Market Cap (%) Standard 7.7 Deviation Coefficient 2.5 of Variation (CoV) No. of Shares 167.6 Traded (Mn) 2.9 Shares Traded/ Shares Listed (%)Note 1 Turnover/ Average Market Cap (%) 2010 962.8 2011 1,007.9 2012 894.7 2013 2,315.4 3.9 4.1 3.6 9.3 8.6 13.5 6.9 15.9 2.2 3.3 1.9 1.7 308.7 458.7 409.9 710.5 3.9 4.8 4.3 6.3 African Securities Exchanges Association Indicators Standard Deviation Coefficient of Variation (CoV) No. of Shares Traded (Mn) Shares Traded/ Shares Listed (%)Note 1 2009 7.7 2010 8.6 2011 13.5 2012 6.9 2013 15.9 2.5 2.2 3.3 1.9 1.7 167.6 308.7 458.7 409.9 710.5 2.9 3.9 4.8 4.3 6.3 Note 1: For Domestic Companies and based on average shares traded Source: BSE It can be observed that trading activity in terms of volume and value of shares traded was highest in Quarter 4 in comparison to the other quarters of 2013. The average daily turnover of P13.8 Mn per day achieved in Quarter 4 of 2013 is the highest turnover achieved in any Quarter in the history of the BSE. This was largely due to the turnover generated from transactions in Choppies. Choppies generated a turnover of P204.4 Mn in Quarter 4 through the transaction of 66.8 Mn shares. Figure 4 : Quarterly Market Turnover: 2013 Indicators Turnover (P’ Mn) Average Daily Turnover (P ‘Mn) Turnover/ Average Market Cap (%) Standard Deviation Coefficient of Variation No. of Shares Traded (Mn) Shares Traded/ Average Shares Listed %)Note 1 Quarter 1 Quarter 2 Quarter 3 Quarter 4 250.8 4.1 684.1 11.0 510.4 8.2 870.1 13.8 0.7 1.8 1.1 2.0 6.4 11.8 9.5 23.5 1.6 1.1 1.4 1.7 99.8 229.3 134.5 246.9 0.9 2.0 1.1 2.2 Note 1: For Domestic Companies Source: BSE ASEA Y E A R B O O K 19 African Securities Exchanges Association 1.3 EQUITY MARKET CAPITALISATION The relative size of domestic companies listed on the BSE continued to improve in 2013. The BSE’s domestic market capitalisation for equity was P43.5 Bn as at the end of 2013, an increase of 22.3% in comparison to P35.5 Bn in 2012. The size of domestic companies relative to the size of the economy, indicated by the ratio of market capitalisation to GDP, also increased in 2013 to 33.6% from 30.8% in 2012. Figure 5: Market Capitalization and Relative Performance: 2009 to 2013 Market Capitalisation Domestic Companies (P’Mn) Foreign Companies (P’Mn) Total (P’Mn) Relative Performance Note 1 Domestic Market Cap/ GDP (%) Turnover/ Domestic Co Market Cap (%) Turnover/ All Co Market Cap (%) 2009 2010 2011 2012 2013 28,536.2 26,245.7 30,694.3 35,530.8 43,457.6 346,001.1 408,380.3 380,909.5 376,818.2 373,132.8 374,537.2 434,626.0 411,603.8 412,349.0 416,590.4 38.0 33.1 28.8 30.8 33.6 2.7 3.5 3.5 2.7 5.9 0.2 0.2 0.2 0.2 0.6 ASEA Y E A R B O O K Note 1: Computed using average domestic market capitalisation, average total market capitalisation and average annual GDP (at current prices) subsequent to the rebasing of economic statistics by Statistics Botswana Source: BSE, Statistics Botswana 20 African Securities Exchanges Association 1.4 INDICATORS OF VALUE Figure 6: Market Indicators for Domestic Companies Listed on the BSE : 2009 to 2013 Domestic Companies Market indicators P/E Ratio (times) Dividend Yield (%) Price/Book Value (times) 2009 2010 2011 2012 2013 10 YR AVG 13.5 10.8 10.2 9.2 11.5 12.1 4.3 4.9 5.2 4.9 4.1 5.0 4.8 3.9 2.8 2.5 2.7 5.4 Note: The statistics are based on the most recent audited financial statements Source: BSE 1.5EXCHANGE TRADED FUNDS 1.5.1Performance of the NewGold ETF The price of Gold declined gradually from its 2013 high to close the year with a depreciation of 27.8%. The NAV and price on the BSE in Pula terms of the NewGold ETF depreciated by 19.1% and 17.2% in 2013 respectively. The difference in the depreciation of the BSE price of 17.2% and the decrease in the NAV (in Pula terms) of 19.1% as at end December 2013 was primarily due to the manner in which the BSE determines closing price, which is defined as the last traded price. The NewGold ETF traded 1.2 Mn units for a value of P131.2 Mn, in comparison to 223,026 units with a value of P27.6 Mn in 2012. The ETF was traded at prices ranging between P100.50 and P130.30 per unit. A record 2.3 Mn units were held in the Botswana register as at the end of 2013, the highest number of units since the New Gold ETF was listed on the BSE in July 2010. This increased creation of units underpinned the proportionate increase in volume and inflows in 2013. 1.5.2 Performance of the BettaBeta ETF At the end of 2013, the price of the BettaBeta ETF had depreciated by 5.6% on the BSE. The turnover of the BettaBeta ETF was the lowest since being listed on the BSE. The BettaBeta ETF traded 20,519 units at prices ranging from P33.55 and P40.60 per unit. ASEA Y E A R B O O K 21 African Securities Exchanges Association 1.6 BOND MARKET PERFORMANCE Debt market turnover decreased substantially in 2013 when compared to 2012. The total value of debt instruments traded in 2013 amounted to P94.7 Mn, compared to P332.2 Mn in 2012. The total debt market turnover was accounted for by government bonds. The total number of bonds listed on the BSE as at the end of 2013 stood at 35, unchanged from 2012. The total nominal debt market capitalisation of the bonds listed on the BSE amounted to P9.3 Bn in 2013 in comparison to P8.5 Bn in 2012. 2.0 PRIMARY MARKET ACTIVITY 2.1 Equity On 14 October RDC Properties undertook a share split on a 5 for 1 basis resulting in its price moving from P7.11 per share to P1.42 per share. Share splits are usually carried out to improve affordability of the company’s shares making them more marketable while the existing shareholders retain the same proportion of ownership. As a result of the share split the number of issued securities increased fivefold. The share split resulted in an appreciation of the price of RDC Properties by 26.8% between 14 October 2013 and 31 December 2013. Shumba Coal Limited, a mineral exploration company, listed on the BSE’s Foreign Venture Capital Board on 8 April 2013. The company listed 168.8 Mn shares at an indicative offer price of P1.05 per share. Aviva Corporation and Hana Mining delisted from the BSE’s Foreign Venture Capital Board with effect from 27 September 2013 and 25 February 2013 respectively. On the domestic board, RPC Data Limited delisted with effect from 12 December 2013 as the result of management buyout. Overall, the BSE listed one company in 2013 in comparison to 3 companies having listed in 2012. Three companies delisted from the BSE in 2013 in comparison to 1 company in 2012. 2.2 Bonds 9.2.1 Government Bonds On 6 September, the Bank of Botswana (BoB) auctioned P450 Mn worth of bonds, of which P449 Mn was allotted. In addition to the two bonds, a six month Treasury Bill was issued for a value of P340 Mn (Treasury Bills are not listed and traded on the BSE at present). ASEA Y E A R B O O K Additional issues were made in respect of 2 existing bonds, BW008 and BW010. The BoB also issued a new bond (BW011) which will mature on 10 September 2031. Issues in respect of BW008 and BW010 were fully allotted at P150 Mn and P100 Mn respectively. BoB offered P200Mn on account of BW011 of which P199.0 Mn was allotted. Overall, the 3 bonds were 3.6 times oversubscribed. The BW009 bond matured on 11 September 2013. BW011 was listed on the BSE on 29 October 2013. 22 On 6 December 2013, BoB auctioned P840 Mn worth of bonds and the issue was allotted in full. The auction comprised of 3 bonds on account of BW008, BW010 and BW011 and a 6 month Treasury Bill for P340 Mn. The nominal value in issue of BW008, BW010 and BW011 increased by P150 Mn, P150 Mn and P200 Mn respectively. The bond auction was 2.4 times oversubscribed. African Securities Exchanges Association 9.2.2 Corporate Bonds On 6 December 2013, Furnmart Limited listed a bond (FML025) with a nominal value of P150 Mn. FML025 is a 12 year bond maturing on 23 October 2025. The bond pays a fixed coupon of 8.20% per annum payable half-yearly. Letshego issued and listed 4 bonds with semi-annual coupon payments on 8 November 2013. The issues are detailed in Figure 7. Figure 48: Corporate Bonds Listed by Letshego in 2013 Bond Code LHL005 LHL006 LHL007 LHL008 Source: BSE Amount Issued (BWP) 50,000,000 200,000,000 75,000,000 25,000,000 Maturity ( Years) 4 10 12 14 Coupon Payment (%) 8.25 10.50 10.50 11.00 Stanbic Bank Botswana redeemed three bonds in issue by exercising call options. The SBBL046, SBBL049 and SBBL052 were redeemed on 11 June, 13 August and 17 December 2013 respectively. DPCF003 and the SCBB005 matured on 2 June and 27 November 2013 respectively. ASEA Y E A R B O O K 23 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Currency: USD Indicators 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 1.82 2.04 2.04 2.13 15683.42 N/A N/A N/A 7.4 9.2 7.4 4.1 N/A N/A N/A N/A 17.5 17.8 17.8 17.8 7.15 3.45 5.36 2.84 6.44 7.52 7.40 8.73 Exchange rate (local currency versus US$) Section Two: Trading Statistics Trading equity Statistics ASEA Y E A R B O O K Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization (billions) end of year Market Capitalization as % of GDP** Turnover Velocity (%) * 24 Currency: USD 2010 149,516,874 308,662,256 4,978 2011 133,968,231 458,706,950 5,045 2012 135,596,598 465,790,767 7,465 2013 265,580,004 710,451,879 1,380,789 32 37 39 35 30.0 37.0 38.0 34.0 67.50 54.70 53.03 47,78 0.30 0.25 0.24 NA 3.7 3.3 2.71 6.6 Turnover Velocity = (Monthly Value Traded Of Listed Shares/Month-End Market Cap) X 12 (Annualized). African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % 2010 Not available Not available % Of the Total Value traded $ 2011 2012 Not available Not available Not available Not available 2013 33% 67% 100% Includes brokers but excludes ETFs Insitutions Vs. Individuals Institutions Individuals Total % 2010 Not available Not available 2011 Not available Not available 2012 Not available Not available 2013 89% 11% 100% Includes brokers but excludes ETFs Sectors Traded Sectors traded on the Stock Exchange Domestic Board Banking Financial Services Retail & Wholesaling Property & Property Trust Funeral Services Security Services Information Technology Energy Tourism Health Foreign board Financial Services Mining & Minerals Retail &wholesaling ETF's Corporate Bonds Number Of Companies Included In Each Sector 2010 2011 2012 2013 4 3 5 4 4 3 4 5 4 3 5 5 4 3 5 5 1 1 1 1 2 None 1 1 1 1 3 None 1 1 1 1 3 None 1 1 1 1 3 None 2 7 None 1 26 2 10 None 2 23 2 11 None 2 23 3 11 None 2 26 ASEA Y E A R B O O K 25 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Financial Services and Insurance Banking Retail and Wholesaling Funeral Services Property and Property Trust Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 18,514,274.32 18,259,346.32 2011 43,172,211.08 37,703,202.08 2012 42715664 40,400,864 2013 10,857,454 10,857,454 254,928 5,469,009 2,314,800 - Section Four: Trading System Trading System ( Automated Trading System ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought MillenniumIT 8/1/2012 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? 26 No Yes MillenniumIT 2008 T+ 2 T+ 3 Others ASEA Y E A R B O O K If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange Botswana Stock Exchange Separate Company Central Securities Depository Botswana Central Securities Depository Botswana N/A Yes African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes N/A N/A Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Bonds ETFs Description of the Product Ordinary shares Government and corporate bonds Gold Bullion Exchange Traded Fund + index based ETF Section Seven: Trading Mechanism Margin Trading Intraday Trading Online Trading No Yes Yes Section Seven: Indices Indices Index Name Domestic company index Foreign company index Domestic Company Index Foreign Company Index Index Type (Price Index, Sector Index,..etc) Price Index Price Index Closing 2012 7,510.24 Closing 2013 9,053.36 % change 20.55% 1,599.53 1,583.45 -1.01% ASEA Y E A R B O O K 27 African Securities Exchanges Association Section Eight : IPOs 2012 Company Date of IPO Choppies 26-January 2012 2012 Value of IPO ($ Million) 6.84 Company Date of Issue Face Value of Issue ($Million) None 2013 Company Date of IPO Shumba 8-April-2013 2013 Value of IPO ($ Million) 20.67 Company Date of Issue BW011 FML015 LHL005 LHL006 LHL007 LHL008 6-Sep-2013 18-Oct-2013 11-Aug-2013 11-Aug-2013 11-Aug-2013 11-Aug-2013 Face Value of Issue ($ Million) 45.85 5.93 5.91 23.64 8.87 2.96 Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 Stock brokerage Units Stockbrokers Botswana Motswedi Securities Capital Securites African Alliance Botswana Purchases $ N/A N/A N/A N/A Sales $ N/A N/A N/A N/A ASEA Y E A R B O O K Members’ Contacts are available on the BSE website www.bse.co.bw 28 Total $ N/A N/A N/A N/A African Securities Exchanges Association bourse regionale des valeurs mobilieres stock exchange BOURSE REGIONALE DES VALEURS MOBILIERES Afrique de l’Ouest Website Market Regulator Address www.brvm.org Conseil Régional de l'Epargne Publique et des Marchés Financiers 18 Avenue Joseph Anoma, 01 BP 3802 AbidJanuary 01 Trading Session hours (local time) Preopen: 8:30am - 10:30am; Fixing: 10:45am Time Zone Greenwich Mean Time + 0 hours Contact Person for ASEA Edoh Kossi Amenounve, CEO Telephone +225 20 31 55 59 Fax +225 20 32 66 84 E-mail [email protected] Name of Local Currency (XOF) FCFA Tax Rates (dividends, interest, capital gain) Dividend withholding taxes 10% Listing of Foreign Domiciled Companies Company must register in WEST AFRICAN ECONOMIC AND MONETARY UNION -WAEMU - Registrar of Companies. If already listed, it must get a letter of comfort from its listing authority Commodities Exchange N/A ASEA Y E A R B O O K 29 African Securities Exchanges Association The History of the Cape Verde Stock Exchange • Created in 1998 and became fully functional in December 2005 • Orden Quote Driven and POS - Light, SifoxDeal and SifoxBackOffice technology platforms put in use in 2005 • 2009- About 94% of all credit granted to the national economy originated from the BVC, through various emissions carried out. • 2010- First time issuance of Municipal bonds for the municipalities of Sal and Praia • 2011- Current market capitalization is approximately $273,277,594.92 (USD); Capitalization is at 20% of the gross domestic product, according to data from the Bank of Cape Verde. • Thirty (30) active securities, including: 4 listed companies in the shares segment and 26 in the bonds segment (16 corporate bonds, 8 Treasury bonds and 2 municipal bonds) • Par tnerships with Euronext Lisbon, with the Central Clearing and Depository, Interbolsa, which is a subsidiary of Euronext Lisbon, with Caixa de Crédito Agrícola and with Instituto Superior de Economia e Gestão (ISEG) da Universidade Técnica de Lisboa. • cy 2012 – Protocols with Secondary schools and Universities regard Financial litera- • New Code of Securities Market, after 14 year since entry in force of the original Code • Release of New Circular – Circular nº3/2012 regard to the Code of Conduct • With Regard to the Market Capitalization, currently, it represents five times more the amount in the reopening in 2005 ASEA Y E A R B O O K • With regard to transactions, taking into account the high issuance of treasury bonds, the volume of transactions have nearly tripled. A relevant indicator of trend and impact that market will have, knowing the envisage deployment of Platform Auction trading of treasury bonds in the Capital Market 30 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Currency: USD Indicators 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 97.05 98.60 101.23 103.25 65,818.78 72,234.16 70,145.67 77,913.58 1.40 3.90 2.30 2.20 1950.72 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 497.97 456.62 497.58 474.85 Exchange rate (local currency versus US $) Source: BCEAO (2013 E) Section Two : Trading Statistics Trading equity Statistics Currency: USD 2010 130,847,082 28,275,804 21,522 2011 129,114,703 18,066,088 18,683 2012 174,171,421 37,311,162 29,657 2013 296,791,113 60,754,359 33,906 39 39 37 37 39 39 37 37 6.97 6.96 8.10 11.86 10.59% 9.63% 11.55% 0.15 1.88% 1.86% 2.15% 2.50% ASEA # Number of companies which have shares listed on an exchange at the end of the period * Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). Y E A R B O O K Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies # Number of traded companies Market Capitalization (billions) end of year Market Capitalization as % of GDP Turnover Velocity (%) * 31 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2011 2012 N/A N/A N/A N/A N/A N/A 2010 N/A N/A N/A 2013 N/A N/A N/A institutions vs. individuals Institutions Institutions Individuals Total % 2010 N/A N/A N/A 2011 N/A N/A N/A 2012 N/A N/A N/A 2013 N/A N/A N/A Sectors Traded Sectors traded on the Stock Exchange ASEA Y E A R B O O K (Equity Market and 1st & 2nd board) Industry Public utilities Financial Transportation Agricultural Distribution Other sectors Bond Market WAEMU countries Bonds Institutional Bonds 32 Number Of Companies Included In Each Sector 2010 2011 2012 2013 13 4 8 2 4 7 1 13 4 8 2 4 7 1 12 4 8 2 4 6 1 12 4 8 2 4 6 1 6 8 9 12 8 6 8 6 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Financial Public utilities Agricultural Industry Distribution Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds Value traded on institution bonds Value traded on corporate bonds 2010 48,494,658 2011 37,166,743 2012 38,854,098 2013 38,712,500 47,261,106 34,766,384 29,021,081 30,888,247 61,042 323,276 1,397,718 4,569,765 1,172,510 2,077,083 8,435,299 3,254,489 Section Four : Trading System Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought NOVITA 2012 ASEA Y E A R B O O K 33 African Securities Exchanges Association Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange Separate Company Yes Dépositaire Central / Banque de Règlement (DC/BR) No Yes PERCIVAL Limited 1998 T+ 2 T+ 3 Others Yes Section Six : Products traded on the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Shares Rights Bonds Common Shares Rights Government - Corporate - Institution Bonds Section Seven : Trading Mechanism ASEA Y E A R B O O K Margin Trading Intraday Trading Online Trading 34 Yes African Securities Exchanges Association Section Seven : Indices Please specify the main indices used by your Stock Exchange and the description of each: Indices Index Name BRVM 10 BRVM Composite BRVM Financial BRVM Public utilities BRVM Agricultural BRVM Industry BRVM Distribution BRVM 10 BRVM Composite Index Type (Price Index, Sector Index,..etc) This index reflects the performance of the 10 most active securities on the BRVM. The BRVM Composite is calculated using the capitalisation of all equities listed on the BRVM. The BRVM Financial Index is calculated using the capitalisation of all equities listed on the finacial sector. The BRVM Public utilities Index is calculated using the capitalisation of all equities listed on the Public utilities sector. The BRVM Agricultural Index is calculated using the capitalisation of all equities listed on the agricultural sector. The BRVM Industry Index is calculated using the capitalisation of all equities listed on the Industry sector. The BRVM Distribution Index is calculated using the capitalisation of all equities listed on the Distribution sector. Closing 2012 184.04 Closing 2013 246.34 % Change 33.85 166.58 232.02 39.28 ASEA Y E A R B O O K 35 African Securities Exchanges Association Section Eight : IPOs EQUITY ISSUES Company Bank Of Africa Cote D'ivoire Bank Of Africa Burkina Faso Total 2010 Date of Issue Value of Issue ($ million) April 07, 2010 33.94 December 30, 2010 40.15 74.09 2011 Company Date of Issue Value of Issue ($ million) None None None 2012 Company Date of Issue Value of Issue ($ million) None None None ASEA Y E A R B O O K 2013 36 Company Date of Issue Value of Issue ($ million) None None None African Securities Exchanges Association RIGHTS ISSUES 2010 Company Bank Of Africa NIGER Bank Of Africa NIGER Date of Issue Value of Issue ( $ million ) June 04, 2010 August 03, 2010 6.29 0.74 Total 7.03 2011 Company Date of Issue Value of Issue ( $ million ) Bank Of Africa BURKINA FASO Bank Of Africa BURKINA FASO Bank Of Africa NIGER June 15, 2010 2.41 October 05, 2010 0.66 October 31, 2010 0.73 December 15, 2011 7.01 Bank Of Africa COTE D'IVOIRE Total 10.82 2012 Company None Date of Issue Value of Issue ( $ million ) None None 2013 Company Bank Of Africa NIGER Date of Issue Value of Issue ( $ million ) October 1st, 2013 0.89 Section Eight : debt securities 2010 Issuer Government of Côte d'Ivoire Treasury Bond Port Autonome de Dakar Total Date of Issue Value of IPO ($ million) September 17 2010 130.05 November 30 2010 20.08 150.13 ASEA Y E A R B O O K 37 African Securities Exchanges Association 2011 Issuer ASEA Y E A R B O O K Ecowas Bank For Investment And Development Palm Ci Port Autonome De Côte D'ivoire Government Of Sénégal Treasury Bond Government Of Côte D'ivoire Treasury Bond Government Of Togo Treasury Bond Government Of Côte D'ivoire Treasury Bond 38 Date Of Issue Value Of IPO ($ Million) 18th January 2011 91.98 19 January 2011 32.85 27 January 2011 65.70 31 January 2011 168.19 7 February 2011 50.18 9 August 2011 131.40 19 December 2011 350.92 African Securities Exchanges Association 2012 Issuer Government of Burkina Faso Treasury Bond (*) Government of Bénin Treasury Bond (*) West African Development Bank Government of Côte d'Ivoire Treasury Bond Regional Fund for Mortgage Re- financing (CRRH-WAEMU) Government of Côte d'Ivoire Treasury Bond Banque de l'Habitat du Benin Bank Of Africa Burkina Faso Bank Of Africa Côte d'Ivoire Bank Of Africa Niger Bank Of Africa Sénégal Government of Senegal Treasury Bond Regional Fund for Mortgage Re- financing (CRRH-WAEMU) Date of Issue Value of IPO ($ million) 9 February 2012 121.79 28 February 2012 138.29 29 February 2012 87.16 22 May 2012 144.59 6 August 2012 25.12 14 September 2012 188.28 4 October 2012 4.02 4 October 2012 8.04 4 October 2012 8.04 4 October 2012 4.02 4 October 2012 4.02 7 December 2012 177.06 19 December 2012 37.18 (*) Issued in 2011 ASEA Y E A R B O O K 39 African Securities Exchanges Association 2013 Issuer Government of Côte d'Ivoire TreasuryBond Government of Senegal Treasury Bond SIFCA Regional Fund for Mortgage Re- financing (CRRH-WAEMU) Government of Burkina Faso Treasury Bond ORAGROUP Government of Côte d'Ivoire Treasury Bond Date of Issue Value of IPO ($ million) 28 June 2013 254.57 22 July 2013 140.96 31 July 2013 73.71 18 October 2013 42.54 14 November 2013 256.08 27 November 2013 45.32 28 November 2013 205.72 Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 Stockbrokerage Units N/A Purchases Sales Total $ $ $ ASEA Y E A R B O O K Members’ Contacts are available on the BRVM website 40 African Securities Exchanges Association Bourse de Tunis stock exchange profile Website www.bvmt.com.tn Market Regulator Conseil du Marché Financier (CMF) / Financial Market Council 34 Avenue de la Bourse, les Jardins du Lac, Les Berges du Lac II, 1053, Tunis, Tunisia Address Trading Session hours (Local time) Fixing Trading: Continuous Trading: 9:00 am-10:00 am: First Pre-opening 09:00 am - 10:00 am: Pre-opening 10:00 am : First Opening 10:00 am : Opening 10:00 am-11:30 am: Second Pre-opening 10:00 am - 02:00 pm: Continuous trading 02:00 pm - 02:05 pm: Closing auction 11:30 am: Second Opening 11:30 am - 01:00 pm: Third Pre-opening 02:05 pm: Opening 01:00 pm: Third opening 02:05 pm- 02:10 pm: Trading at last price 01:00 pm - 01:05 pm: Trading at last price 02:10 pm: Closing 01:05 pm: Closing Time Zone Greenwich Mean Time + 1 hour Contact Person for ASEA Lotfi Khezami Telephone 00 216 71 197 910 Fax 00 216 71 197 903 E-mail [email protected] Name of Local Currency TND (Tunisian Dinar) ASEA Y E A R B O O K 41 African Securities Exchanges Association 1- Dividends are exempted, but for natural persons are taxed of 5% and abtment of TND 10 000. 2- Bonds' interests are subject to withholding tax of 20%. 3- Capital gains are taxed when equities bought at year N are sold before year N+2: * For local natural persons, capital gains are subject to tax rate of 10%, after deduction of capital loss recorded during the same year and abatment of TND 10 000. Tax Rates (dividends, interest, capital gain) * For local corporate entities, capital gains are taxed in the case of corporate's profit and after deduction of capital loss * For foreign natural person, capital gains are subject to withholding tax of 10% with a maximum limit of 2,5% of sale price * For foreign coroporate entity, capital gains are subject to withholding tax of 30% with a maximum limit of 5% of sale price ASEA Y E A R B O O K Foreign investors can opt for tax return to benefit from the deduction of capital loss and abatment, like local investors. 42 Listing of Foreign Domiciled Companies No Commodities Exchange No African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2009 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates * Inflation rate (%) Net Foreign Direct Investment (USD) (Millions)* Unemployment rate (%) * Interest Rate (T-Bills) 10.44 10.55 10.67 10.78 10.89 44,618.31 44,176.92 3.50 4.40 3.50 5.60 6.10 1,729.83 1,505.67 1,077.77 1,932.22 1,275.28 13.30% 13.00% 18.90% 17.02% 15.70% 4.18% 4.87% 3.28% 4.16% 4.24% 1.3173 1.4379 1.4993 1.5506 1.6467 Exchange rate (local currency versus US$) 43,600.35 45,994.32 47,123.40 * Estimated value for 2012 ASEA Y E A R B O O K 43 ASEA 44 14.02% Turnover Velocity (%) * 17.18% 24.11% 10.63 56 56 629,488 271,666,075 1,826,390,755.96 2010 10.87% 22.50% 9.64 57 57 448,872 252,692,067 1,048,193,427.60 2011 14.10% 19.32% 8.89 59 59 569,403 240,522,983 1,253,082,047.59 2012 2013 10.88% 18.2% 8.56 68 71 513,099 238,674,931 884,953,500.33 * Estimated value * Turnover Velocity%(2013) = (Monthly Share Value Traded/Month-End Market Capitalization) x 12 (annualized) 22.90% Market Capitalization as % of GDP * 52 Number of traded companies 9.28 52 Number of listed companies Market Capitalization (billions) end of year 394,137 189,343,003 Total volume traded Total number of transactions 1,301,594,847.04 2009 Total Value traded $ Indicators Trading equity Statistics Section Two : Trading Statistics Y E A R B O O K African Securities Exchanges Association African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % 2009 12.00% 88.00% 100% % of the Total Value traded $ 2010 2011 2012 10.00% 11.30% 6.30% 90.00% 88.70% 93.70% 100% 100% 100% 2013 12.10% 87.90% 100% Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A NA N/A N/A NA N/A N/A Sectors Traded Sectors traded on the Stock Exchange Domestic Board Finance Telecommunication Consumer services Health Consumer Goods Industry Basic materials Oil and gas Technology Foreign board Corporate Bonds Number of Companies Included In Each Sector 2009 52 22 2 6 2 8 7 4 1 2010 56 25 2 6 2 8 8 4 1 None 142 None 159 2011 57 24 2 6 2 9 8 4 1 1 None 168 2012 59 24 2 6 2 9 9 4 1 2 None 173 2013 71 26 2 8 2 13 12 4 1 3 None 197 * Specify the sector and the number of companies in each ASEA Y E A R B O O K 45 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Industry Consumer Goods Finance Consumer services Telecommunication Section Three: Bonds Statistics Bonds Statistics Bonds 2009 2010 2011 2012 2013 Total Value traded $ 75,452,703.26 52,705,519.30 71,008,532.65 86,827,569.33 46,505,714.46 Value traded on governmental bonds $ 69,186,759.28 44,002,666.25 20,821,435.34 55,400,857.73 28,873,073.42 6,265,943.98 8,702,853.05 50,187,097.31 31,426,711.60 17,632,641.04 ASEA Y E A R B O O K Value traded on corporate bonds $ 46 African Securities Exchanges Association Section Four : Trading System Trading System ( NSC ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought NYSE Technologies 1996 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange No If Separate Company please mention its name Société Tunisienne Interprofessionnelle pour la Compensation et le Dépôt des Valeurs Mobilières (STICODEVAM) No Yes Euroclear 1996 Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: Separate Company Yes T+ 2 T+ 3 Others No Yes No Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes No Yes ASEA Y E A R B O O K 47 African Securities Exchanges Association Products Product (Stocks,Bonds, Funds,ETF's,Derivatives ..etc) Shares Bonds Securitised Debt Description of the Product Common stocks, none voting stocks Government Bonds and Corporate Bonds - Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading No No Yes Section Seven : Indices Please specify the main indices used by your Stock Exchange and the description of each: Indices Index Name TUNINDEX Sector Indices TUNINDEX 20 TUNINDEX ASEA Y E A R B O O K TUNINDEX20 48 Index Type (Price Index, Sector Index,..etc) A broad market return index launched in December 31 st, 1997, with a base of 1000. Weighted by the free float adjusted market capitalization Return indices launched in December 31 st, 2005, with a base of 1000. Weighted by the free float adjusted market capitalization. Each listed company is allocated to the sector where it realizes the majority of its revenue It was launched in January 1st, 2012. It's a return index weighted by free float adjusted market capitalization and it reflects the performance of the 20 most liquid shares traded on Tunis Stock Exchange Closing 2012 4,579.85 1,791.82 Closing 2013 4,381.32 % change -4.33% 1,753.16 -2.16% African Securities Exchanges Association Section Eight : IPOs 2009 Company SERVICOM Les Ciments de Bizerte Total Date of IPO 6 January 2009 Value of IPO ($ million) 2.47 10 August 2009 76.91 79.38 2010 Company Assurances Salim TUNIS RE Carthage Cement Ennakl Automobiles Modern Leasing Total Date of IPO Value of IPO ($ million) 19 March 2010 26 April 2010 6.89 9.74 6 October 2010 7 December 2010 12 January 2010 93.82 66.97 5.91 183.32 2011 Company Date of IPO Value of IPO ($ million) TELNET HOLDING Total 19 April 2011 8.01 8.01 2012 Company HEXABYTE ATELIERS MECANIQUES DU SAHEL Total Date of IPO 25 January 2012 18 May 2012 Value of IPO ($ million) 1.29 6.45 7.74 ASEA Y E A R B O O K 49 African Securities Exchanges Association 2013 Company Land'or Ae-Tech New Body Line One Tech Holding Syphax Airlines Euro Cycles Hannibal Lease Best Lease City Cars Manufacture De Panneaux Bois Du Sud «Mpbs» Lilas Sotemail ASEA Y E A R B O O K Total 50 Date of IPO Value of IPO ($ million) 15 February 2013 21 March 2013 6.63 2.13 30 April 2013 9 May 2013 29 May 2013 17 June 2013 21 June 2013 8 October 2013 19 November 2013 24 December 2013 8.13 49.77 15.18 11.05 10.04 12.75 26.93 7.19 27 December 2013 27 December 2013 78.67 4.86 233.33 African Securities Exchanges Association 2009 Company Tunisie Leasing Société Tunisienne de Banque (STB) BNA Arab Tunisian Lease (ATL) Arab Tunisian Bank (ATB) Compagnie Internationale de Leasing (CIL) Union Internationale de Banque (UIB) Compagnie Internationale de Leasing (CIL) Banque de Tunisie et des Emirates (BTE) Arab Tunisian Lease (ATL) Tunisie Leasing Amen Bank Banque de l'Habitat (BH) Cie Internationale de Leasing Arab Tunisian Lease (ATL) Total Date of Issue Face Value of Issue ($ million) 2 February 2009 11.39 2 May 2009 37.96 31 March 2009 37.96 27 April 2009 22.77 5 May 2009 37.96 25 June 2009 15.18 29 June 2009 75.91 8 March 2009 15.18 9 January 2009 37.96 9 November 2009 15.18 9 November 2009 15.18 23 September 2009 45.55 21 December 2009 75.91 23 December 2009 15.18 24 December 2009 22.77 482.05 ASEA Y E A R B O O K 51 African Securities Exchanges Association 2010 Company Tunisie Leasing STB Tunisie Leasing CIL Date of Issue Face Value of Issue ($ million) 18 February 2010 10.43 3 October 2010 69.55 26 April 2010 13.91 7 July 2010 20.86 Arab Tunisian Lease (ATL) Amen Bank 26 July 2010 52.16 8 February 2010 55.64 BTE 26 August 2010 34.77 Attijari leasing 31 August 2010 20.86 CIL 18 October 2010 20.86 Tunisie Leasing 19 October 2010 20.86 Arab Tunisian Lease (ATL) Attijari Bank 13 December 2010 24.34 28 December 2010 34.77 El Wifak Leasing 29 December 2010 13.91 ASEA Y E A R B O O K 392.93 52 African Securities Exchanges Association 2011 Company Date of Issue Face Value of Issue ($ million) 1 October 2011 20.86 Tunisie Leasing 1 November 2011 13.34 Tunisie Leasing 13 April 2011 20.01 UIB 15 August 2011 33.35 Amen Bank 26 August 2011 33.35 13 September 2011 20.01 CIL Tunisie Leasing 140.92 2012 Company Compagnie Internationale de Leasing -CILTunisie Leasing Attijari Leasing Date of Issue Face Value of Issue ($ million) 23 February 2012 12.90 16 April 2012 19.35 19 April 2012 12.90 Arab International Lease -ATLAmen Bank 30 April 2012 19.35 17 August 2012 32.25 Attijari Leasing 23 October 2012 12.90 11 January 2012 25.80 11 December 2012 12.90 12 July 2012 12.90 17 December 2012 12.90 Union Internationale de Banques -UIBTunisie Leasing Compagnie Internationale de Leasing -CILModern Leasing 174.13 ASEA Y E A R B O O K 53 African Securities Exchanges Association 2013 Company Date of Issue Face Value of Issue ($ million) 2 May 2013 4.86 ATL 21 February 2013 18.22 Tunisie leasing 28 February 2013 12.15 Elwifack leasing 4 March 2013 12.15 4 February 2013 18.22 4 May 2013 12.15 AIL 16 April 2013 24.29 BH 30 April 2013 30.97 8 July 2013 18.22 Unifactor 14 August 2013 12.15 ATL 23 August 2013 30.36 Attijari Leasing 2013-1 30 August 2013 12.75 CIL 2013-1 9 December 2013 18.22 Tunisie leasing 20 November 2013 12.15 Hannibal lease 16 December 2013 24.29 Servicom UBCI Hannibal lease Tunisie leasing ASEA Y E A R B O O K 261.13 54 African Securities Exchanges Association CASABLANCA stock exchange profile Website Market Regulator Address Trading Session hours (local time) Time Zone Contact Person for ASEA Telephone Fax E-mail Name of Local Currency Listing of Foreign Domiciled Companies www.casablanca-bourse.com Conseil Déontologique des Valeurs Mobilières-CDVM Angle Avenue des Forces Armées Royales et Rue Arrachid Mohamed, Casablanca- MAROC 9:00-3:40 (The trading hours during the month of Ramadan: 9:15-13:40) GMT Ayoub Youssefi (212)522457503 [email protected] MAD Available ASEA Y E A R B O O K 55 African Securities Exchanges Association Tax Rates (dividends, interest, capital Non-domestic corporate investors are exempt from gains) capital gains tax on listed securities. However, they are subject to capital gain tax for shares NOT listed in the Casablanca Stock Exchange. If the investor’s country of residence has signed a double taxation treaty (DTT) with Morocco, the payment place and CGT rate will be stipulated In the DTT. In the event where no DTT is in place, the investors will be subject to 30 % CGT rate and it is the investor’s responsibility to arrange for the payment to the local tax administration. Non-resident individuals are subject to capital gains tax, exception to this is when there is a Double Tax Treaty between the residency of the individual and Morocco. The capital gains tax rates applicable to non-resident individuals are as follows: 15 % on equities 15 %on mutual funds permanently investing at least 60 percent of their assets in equities 20 % on bonds and other mutual funds Effective 1 January 2010, individuals (residents and non residents) have become subject to a capital gains tax rate of 20% on Non-listed equities. ASEA Y E A R B O O K Commodities Exchange 56 Foreign investors are subject to 15% withholding tax on dividends unless a double taxation treaty in signed between Morocco and the investor’s domicile country and provides for a lower rate or exemption. No African Securities Exchanges Association MARKET PERFORMANCE With a market capitalization in excess of $ 55.0 billion at the end of 2013, CSE is one of the largest securities exchange in Africa. CSE, that was established as far back as 1929 operates within a modern market infrastructure which includes a market authority, the CDVM, a central depository, Maroclear and a centralized payment system operated by the Central Bank. There are currently 76 companies listed on the exchange, representing all major sectors of the economy. Following the major overhaul of Morocco’s capital markets, in 1993, security trading boar became Casablanca Stock Exchange, a private company, owned by the brokers. In 2011, CSE has been involved in the creation of the “Association des Bourses Francophones d’Afrique” (ABFA) (French-speaking Exchanges Association). In 2010, CSE became a member of the World Federation of Exchanges (WFE). The same year, CSE created, in partnership with FTSE, the FTSE CSE 15 index. With the creation, in 2010, of the Moroccan Financial Board, empowered to transform Casablanca into a regional financial hub, CSE is poised to experience new growth. In 2001, the exchange started trading on an electronic platform which was upgraded in 2008 to a new, state of the art platform offering multiple functionalities, increased speed and greater transparency. In 2014, the Casablanca Stock Exchange signs a strategic partnership with the London Stock Exchange Group (LSEG) reflecting the commitment of both financial centers to reinforce the international attractiveness of Morocco which positions itself as a regional financial hub. Through this partnership, LSEG and CSE will work to develop the Moroccan and regional financial market, in the areas of Technology, Financing SMEs and the establishment of new products and markets including a derivatives’ market. ASEA Y E A R B O O K 57 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Currency: USD Indicators 2010 2011 2012 2013 Population (million)* 31.89 32.24 32.59 32.95 90.9 90.8 99.21 96.73 0.99% 1.40% 1.20% 2.10% 1,240.627 2,521.365 2,841.956 - 9% 9.10% 9.00% 9.20% 3,34 (T4 2011) 3,40 ( T4 2012) 3.48 %(oct 2013) 8.58 8.43 8.15 Real GDP (USD) (billions) at market exchange rates** Inflation rate (%)*** Net Foreign Direct Investment (USD) (Millions)** Unemployment rate (%) Interest Rate (T-Bills)-13 weeks*** Exchange rate (local currency versus US$) 8.36 *HCP: www.hcp.ma **World Bank ***The Central Bank: www.bkam.ma Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ (1) Total volume traded (1) Total number of transactions (1) Number of listed companies (Domestic)† Number of listed companies (Foreign)‡ Number of traded companies Domestic Market Capitalization (billions) end of year ¤ Market Capitalization as % of GDP Turnover Velocity (%) *** Currency: USD 2013 5,956,631,622.54 197,316,097 125,137 75 1 78 55.22 50.58 5.87% Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. † The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts ASEA Y E A R B O O K ¤ 58 *** Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). (1) = one way counted-Central Market and Block Market - Rights are included African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors* Local Investors Total % % of the Total Value traded $ 2011 11% 89% 100% 2012 11.00% 89.00% 100% 2013 35% 65% 100% *Foreign institutional investors(individuals are not considered) **Traded Value Both Central and Bloc Markets(Excluding capital raises, public offers, Ipos..) Insitutions Vs. Individuals Institutions Individuals* Total % 90% 10% 100% 94% 6% 100% 95% 5% 100% *Including foreign individuals **Traded Value Both Central and Bloc Markets(Excluding capital raises, public offers, Ipos..) ASEA Y E A R B O O K 59 African Securities Exchanges Association Sectors Traded Sectors Traded on the Stock Exchange Shares Market Segment Banks Beverages Chemicals Construction & Building Materials ASEA Y E A R B O O K Distributors Electrical & Electronic Equipment Electricity Engineering & Equipment Industrial Goods Food producers & Processors Forestry & Paper Holding Companies Insurance Investment Companies & Other Finance Leisures and Hotels Mining Oil & Gas Pharmaceutical Industry Real Estate Software & Computer Services Telecommunications Transport Utilities 60 Number of Companies Included in each Sector 2010 74 6 3 4 6 9 1 0 2011 76 6 3 4 7 8 1 0 2012 77 6 3 4 8 8 1 0 2013 76 6 2 4 8 8 1 1 1 2 2 2 6 1 2 4 6 1 2 4 6 1 2 4 6 1 2 4 8 8 8 7 1 4 2 2 4 6 1 2 1 1 4 2 2 4 7 1 2 1 1 4 2 2 4 7 1 2 1 1 4 2 2 4 7 1 2 1 African Securities Exchanges Association 5 Most Active Sectors 2013 Sectors Banks Food producers & Processors Electricity Real Estate Telecommunications # 1 2 3 4 5 Section Three: Bonds Statistics Bonds Statistics Bonds 2010 Total Value traded $ Value traded on governmental bonds ($)* Value traded on corporate 1,119,460,185.47 bonds** 2011 2012 1,002,343,955.39 897,905,665.04 2013 844,620,452.41 *Please note that government bonds are not traded on the exchange. **Including bonds issued by public firms. Section Four : Trading System Trading System ( NSC V900 ) Is this system locally developed or bought? Bought If bought, who is the Vendor? NYSE Euronext Year of implementing the system: Upgraded 2008 ASEA Y E A R B O O K 61 African Securities Exchanges Association Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange Separate Company If Separate Company please mention its name Is this system locally developed or Internally bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: T+ 2 T+ 3 Others Yes Yes Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Bonds ETFs Description of the Product Shares traded on 3 different boards Corporate bonds only No Section Seven : Trading Mechanism ASEA Y E A R B O O K Margin Trading Intraday Trading Online Trading 62 Yes Yes African Securities Exchanges Association Section Seven : Indices Indices Index Name MASI Float FTSE CSE Morocco 15 Index Index Type (Price Index, Sector Index,..etc) A broad-based index comprising all shares Free float index calculated by FTSE-a real time tradable index consisting of the top 15 stocks trading on the Casablanca Stock Exchange, ranked by gross market capitalization MASI Float Closing 2012 9,359.19 FTSE CSE Morocco 9,619.81 15 Index Closing 2013 9,114.14 8,822.30 % Change -2.62 -8.29 Section Eight : IPOs 2012 Company Afric Industries SA Date of IPO 5 January 2012 Value of IPO ($ million) 3.152 2013 Company Jorf Lasfar Energy Company Date of IPO 24 December 2013 Value of IPO ($ million) 122.69 2012 Company BMCI Ciments De L'atlas FEC IMMOLOG Residences Dar Saada SGMB Total Date of Issue 19 November 2012 3 July 2012 17 January 2012 18 January 2012 25 June 2012 17 December 2012 Face Value of Issue ($ million) 30.24 6.65 17.79 5.93 8.89 38.44 107.94 ASEA Y E A R B O O K 63 African Securities Exchanges Association 2013 Company Attijariwafa Bank BMCE Bank Date of Issue 22 May 2013 16 January 2013 Face Value of Issue ($ million) 66.25 19.63 Section Nine : 2012 Rankings of Top 5 Trading Participants Ranking ASEA Y E A R B O O K 1 64 Stockbrokerage Units Non public information Purchases $ Sales $ Total $ African Securities Exchanges Association dar-es salaam stock exchange profile Please fill in the following data about your Stock Exchange Website www.dse.co.tz Market Regulator Capital Market Securities Authority (CMSA) Tanzania Address 14th FLOOR GOLDEN JUBILEE TOWERS, OHIO STREET, DAR ES SALAAM Trading Session hours (local time) 10h00 - 14h00 (Official Trading Hours) Time Zone East Africa Contact Person for ASEA A. Ngoshani Telephone +255 (0)71 4022044 or +255 (0)2123983 Fax 255(0)22 2133849 E-mail [email protected] Name of Local Currency Tanzanian Shilling Tax Rates (dividends, interest, capital gains) 5% tax on dividends, 0% tax on capital gains Listing of Foreign Domiciled Companies Available Commodities Exchange Not available ASEA Y E A R B O O K 65 African Securities Exchanges Association MARKET PERFORMANCE TREND Market Indicator DSE All Share Index Tanzania Share Index (TSI) Total Market Capitalization (TZS. Bn) Domestic Market Cap (TZS Bn) December 2012 1,485.63 1,430.46 2011 1,303.23 1,140.26 % change 14% 25% 13,197.34 11,577.05 14% 3,005.05 2,395.42 25% LISTING ACTIVITIES In year 2012, the Government listed bonds wor th TZS. 882.71 billion ($554.46 million) through the issuance and listing of Government of Treasury Bonds with maturities of 2, 5, 7, and 10 years. There was no new listing in the equity market during the period under review. However, the following happened during the period under review: • The East African Breweries (EABL) shares in Tanzania Breweries Limited (TBL) were offloaded. • EABL 20% in TBL was offloaded through a Min IPO. • MS. Richland Resources Ltd (a tanzanite mining and marketing company) application for IPO and cross listing was approved by the Governing council. Richland is primarily listed on London Stock Exchange AIMs; • DCB Commercial Bank (DCB) application for additional listing of its shares by way of rights issues and bonus shares was approved. DCB has applied for listing of additional 44.7 million ordinary shares. The DSE Strategic Initiatives During year 2012 the DSE Governing Council approved three major strategic initiatives: • DSE Council in May, 2012 approved the DSE 5 Year Corporate Plan for the years 2012/13 to 2016/17; • Endorsed engagement of the Consultant to study DSE demutualization prospects; • Endorsed engagement of the Consultant to review the DSE Rules in order to among others accommodate new planned products, procedures and best practices. ASEA Y E A R B O O K The approved DSE 5 Year Corporate Plan has come up with the following new DSE’s vision and mission: 66 African Securities Exchanges Association VISION “To be a sustainable securities exchange that is an engine of economic growth for Tanzania” MISSION “To provide a responsive securities exchange that promotes economic empowerment and contributes to the country’s economic development through offering a range of attractive and cost-effective products and services”. The DSE Corporate Plan therefore has eight objectives namely: 1. Ingrain a self-reliant, commercial business culture in the exchange; 2. Achieve consistent profitability without government subventions or grants supporting its core activities; 3. Identify and reduce costs; 4. Expand its range of fee-generating products and services; 5. Improve the organisation and accountability of the DSE organization; 6. Improve the risk management of the DSE and the securities market; 7. Raise the profile of the DSE; 8. Deliver the program defined in this strategy timely. During the period, DSE acquired its own building in a remote location for use as Disaster Recovery Site (DRS). A full range of new ICT equipment’s were procured to replace the ageing hardware at the main office and for installation at the DRS. The procured ICT equipment are expected to suppor t increased operational efficiency in the Exchange. In May 2012 DSE offices were relocated to the 14th Floor of Golden Jubilee Towers Building , Ohio Street in Dar es salaam to provide for more space for planned activities and services and uplift corporate image of the Exchange. 2013 PROSPECTS : Major focus will be on consolidating revenue generating activities initiated during 2012 while working for new listings both in the main market segment and the new EGM market segment. The thrust will also be in laying foundation for new products to be launched in subsequent years for example: M-Akiba bonds, Exchange Traded Funds and services to the Commodities Market. During the year a better foundation for risk management will be put in place. ASEA Y E A R B O O K 67 African Securities Exchanges Association NEAR TERM PRIORITIES The following has been identified as the major activities for year 2013: ASEA Y E A R B O O K • Strengthening the DSE’s organization structure and SRO function through recruiting, redefining some roles and overhauling the DSE Blue Print in line with the existing and foreseeable challenges, • Bringing new listings in the MIMS, EGM and fixed income securities and Implementing the new fee structure, • Consolidation of the gains on data vending and securities registration services, d) Introducing CSDR services and laying ground for M-Akiba bonds product, • Put in place the DSE demutualization road map, • Continue working on necessary conditions for future roll out of new products and services including municipal bonds, Exchange Traded Funds and services related to commodities Exchange 68 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Indicators Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) Exchange rate (local currency versus US $ ) Currency: USD 2010 2011 2012 2013 43.64 44.97 46.35 47.78 21.36 22.91 23.87 28.25 7.2 12.7 16.1 7.9 10.70 10.70 NA 21.1 23.9 23.9 NA 14.55 14.96 NA NA 1,453.54 1,566.66 1,571.62 1,574.01 Section Two : Trading Statistics Trading equity Statistics 2011 2012 2013 24,567,231.10 32,696,009.44 32,088,577.97 160,348,409.48 188,174,810 133,327,780 78,285,596 243,537,149 11,324.00 12,198 9,975 12,673 15 17 17 18 12 15 12 12.00 1,263,670,159.44 1,528,999,174 1,912,073,345 3,799,080,477 5.69% 6.38% 6.72% NA 1.94 2.14 1.68 4.22 Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). ASEA 2010 Y E A R B O O K Indicators Total Value traded ( $ ) Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization (billions) end of year ( $ ) Market Capitalization as % of GDP** Turnover Velocity (%) * Currency: USD 69 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors % of the Total Value traded $ Foreign Investors Local Investors Total % 2010 2011 2012 2013 43% 46% 30% 23% 57% 100% 54% 100% 70% 100% 77% 100% 66.67 33.33 100 84.5 15.5 100 Institutions Vs. Individuals Institutions Individuals Total % 55.5 44.5 100 68.22 31.78 100 Sectors Traded Sectors traded on the Stock Exchange Number of Companies Included in each Sector 2010 2011 2012 Domestic Board Industrial and Allied Banking Investment and Finance Commercial Services 6 4 2013 6 3 6 3 6 3 2 2 2 5 Most Active Sectors # 1 2 3 Sectors Banking Finance and Investment Industrial and Allied Commercial Services Section Three: Bonds Statistics Bonds Statistics ASEA Y E A R B O O K Bonds 70 2010 2011 2012 2013 Total Value traded $ 154,141,394.00 268,942,225.00 241,773,165.00 189,219,453.00 Value traded on governmental bonds ($) Value traded on corporate bonds 154,141,394.00 265,540,083.00 241,731,806.00 188,742,963.00 N/A 3,402,142.00 41,359.00 476,490.00 African Securities Exchanges Association Section Four : Trading System Please tick :and make sure that if your answer is Yes to add the required data Please specify the Trading System Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Automated Trading System No Yes Millennium Information Technology 2006 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange Separate Company Yes No Internally Millennium Information Technology T+ 2 T+ 3 Others Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes ASEA Y E A R B O O K 71 African Securities Exchanges Association Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Bonds ETFs Description of the Product Oridnary Shares Government Bonds, State and Local (Municipal) Bonds, and Corporate Bonds No Section Seven : Trading Mechanism ASEA Y E A R B O O K Margin Trading Intraday Trading Online Trading 72 No No Yes African Securities Exchanges Association Section Seven : Indices Index Name Index Type (Price Index, Sector Index,..etc) DSE All Share Index (ASI) The DSE ASI (All Share Index) is a value-weighted market capitalization index of all listed companies (Including cross listed ones). The start date for the DSE ASI is 2006; the base value is 1000 points. DSE Tanzania Share Index (TSI) The DSE ASI (All Share Index) is a value-weighted market capitalization index of all domestically listed companies (Exluding cross listed companies). The start date for the DSE ASI is 2006; the base value is 1000 points. Industrial and Allied Share Index (IA) This index is designed to provide an investable benchmark to capture the performance of the Industrial and Allied Sector. The DSE ASI (All Share Index) is a value-weighted market capitalization index of all local companies involved in Industrial and Allied actvities. The start date for the DSE ASI is 2006; the base value is 1000 points. Banking Finance and Investment Share Index This index is designed to provide an investable (BI) benchmark to capture the performance of the companies providing Banking, Finance and/ or Investment services . The Banking Finance and Investment Share Index is a valueweighted market capitalization index of all local companies involved in Banking, Finance or Investment services. The start date for the DSE ASI is 2006; the base value is 1000 points. Commercial Services Index This index is designed to provide an investable benchmark to capture the performance of companies involved in Commercial Services. The Commercial Services Share Index is a value-weighted market capitalization index of all local companies providing Commercial Services. The start date for the DSE ASI is 2006; the base value is 1000 points. DSE - ASI DSE - TSI Closing 2012 Closing 2013 % Change 1,485.63 1,430.46 1,866.57 2,843.50 25.64 98.78 ASEA Y E A R B O O K 73 African Securities Exchanges Association Section Eight : IPOs Company None 2012 Date of IPO Value of IPO ($ million) 2013 Company None MAENDELEO BANK Date of IPO 5 November 13 Value of IPO ($ million) 2.5 dEBT SECURITIES 2012 Company N/A Date of Issue N/A Face Value of issue ($ million) N/A 2013 ASEA Y E A R B O O K Company N/A 74 Date of Issue N/A Face Value of issue ($ million) N/A African Securities Exchanges Association douala stock exchange profile Please fill in the following data about your Stock Exchange Website www.douala-stock-exchange.com Market Regulator Financial Services Commission Address Immeuble de la Bourse, BP442 Douala Boulevard de la Liberté, Akwa Trading Session hours (local time) 9 a.m - 11 a.m (Official Market) Time Zone GMT +1h Contact Person for ASEA Pierre Ekoule, General Manager. Telephone (237) 33 43 85 83 Fax (237) 33 43 85 84 E-mail [email protected] Name of Local Currency FCFA (XAF) Tax Rates (dividends, interest, capital gain) ASEA Y E A R B O O K 75 African Securities Exchanges Association OVERVIEW BACKGROUND Creation of the DSX The economies of Central Africa, which consist of Cameroon, the Republic of Congo, Gabon,Equatorial Guinea, the Central African Republic and Chad have carried out, over the pasttwo decades, structural adjustment programmes aimed at restoring their macroeconomic equilibrium. In view of the completion of these programmes, Cameroon established a financial market regulated by law no.99/015 of the 22nd December, 1999 concerning the establishment and organisation of a financial market, in order to respond to the needs of privatisations and longterm financial investment. The Douala Stock Exchange was created on the 30th November 2001 and inaugurated on the 23rd April 2003 by the Prime Minister. Introduction to the DSX Douala Stock Exchange is a market entreprise operating under the terms and conditions of Law No. 99/015 of the 22nd December 1999 which regulates the creation and organisation of financial markets. It is a limited liability company with a Board of Directors and share capital of 1.740.500.000 Francs CFA divided as follows : 63,7% by banks : Amity Bank, Afriland First Bank, Banque Internationale du Cameroun pour L’Epargne et le Crédit, Citibank Cameroun, Commercial Bank of Cameroon, Crédit Agricole - Société Commerciale de Banques Cameroun, Ecobank, Union Bank of Cameroun, Standard Chartered Bank Cameroon , Société Générale de Banque au Cameroun, Crédit Foncier du Cameroun and FMO ; 23% by public entities : Caisse Autonome d’Amortissement, Caisse Nationale de Prévoyance Sociale, Caisse de Stabilisation des Prix des Hydrocarbures and the Société Nationale d’Investissement du Cameroun, and 13,3% by insurance companies : Activa Assurances, Cameroon Insurance, Pro Assur, Compagnie Professionnelle d’Assurances, Société Africaine d’Assurance et de Réassurance du Cameroun,and Satellite Insurance. The Board of Directors consists of twelve (12) members including five (5) representatives of Investment Service providers and members of Douala Stock Exchange (brokers), three (3) representatives of public investors, one (1) representative of the insurance companies, one (1) representative of listed companies, one (1) representative of the banking profession and one (1) representative of the Goverment of Cameroon. ASEA Y E A R B O O K Under the authority of their Financial Markets Commission, the financial market is responsible for : the administration of the market, the introduction, listing and quotation of shares (activity devolved to the Douala Stock Exchange « DSX »); the admission, conservation and circulation of shares (activity delegated to the Caisse Autonome d’Amortissement « CAA ») and the cash settlement of market transactions (activity delegated to the Société Générale des Banques au Cameroun « SGBC »). 76 In addition to the General Management, the organisational chart of Douala Stock Exchange comprises three key functions; Market and Operations, Administration and Finance, and Information and Technology System. African Securities Exchanges Association Functioning of the DSX Douala Stock Exchange applies the principle of a spot or cash market which is centralised and order-driven. These orders are recorded in the DSX quotation system by the Investment Service providers. There is currently one trading session per week, through there are plans to increase Douala Stock Exchange to 3 sessions per week by the end of 2012. Delivery of shares and settlement of accounts will take place wiithin three days following the trading session, as opposed to four days the current. Douala Stock Exchange consists of three market units: equity, corporate bonds and government bonds. Currently, shares in three (03) companies (Société des Eaux Minérales du Cameroun-SEMC, Société Africaine Forestière et Agricole du Cameroun-SAFACAM, and Société Camerounaise de Palmeraies-SOCAPALM) are listed in the first market unit (shares and capital securities), and one bond (International Finance Corporation -IFC-) is listed in the second market unit (bonds and credit instruments). There are currently 13 brokers locally called Investment services providers, namely; AFRILAND FIRST BANK - BAC - BICEC - BMCE Capital Cameroun - CASCB - CBC - CENAINVEST - CITIBANK - EDC Investment Corporation - SFA - SCBC - SGBC - UBA. Conditions for Eligibility and Listing on the DSX The stock market is composed of two divisions, one for large and multinational companies and the other for small and medium size companies and is guided by a number of regulations designed to ensure transparency and the credibility of operations: • For SHARES, a Limited Liability Company may be admitted into the first division (shares) of the DSX provided its stock market capitalisation on introduction exceeds 500 million • F.CFA (USD 1 million), and it can demonstrate a net margin of 3% of its turnover for the previous three years, and can present three years annual audited and consolidated accounts. • Additionally, the company is required to sign a contract which provides for a quotation or a price instruction, each trading session. Finally, it must offer to the public at least 20% of its share capital on listing. • For the second division, credit instruments and certificates, any limited liability comapny is eligible if it shows a stock market capitalisation of at least 200 million F.CFA (USD 400 000) on listing, can provide two years audited accounts and a strong profit-making potential. • Equally, the company is also required to sign a contract which provides for a quotation or a price instruction every five trading sessions. Finally, it must offer to the public at least 20% of its share capital on listing. • For CORPORATE BONDS, any limited liability company with share capital of at least 200 million FCFA (USD 400 000) and which issues at least 500 million FCFA (USD 1 million) is eligible. • For GOVERNMEMT BONDS, admission is open according to the law. ASEA Y E A R B O O K 77 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Indicators Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) Exchange rate (local currency versus US$) Currency: USD 2011 2012 2013 19.40 20.13 22.53 3.80 4.70 5.10 3,4(est) 2,9(est) 2.10 N/A N/A N/A N/A 30(est) 30(est) N/A N/A N/A 500 515 494 Section Two : Trading Statistics Trading equity Statistics ASEA Y E A R B O O K Currency: USD 78 Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization (billions) end of year (USD.) Market Capitalization as % of GDP Turnover Velocity(%) * 2011 2012 2013 447,628.00 1,582,288.63 914,548.44 4,807.00 16,883.00 6,773.00 141 141 181 6 6 3 6 6 3 0.20 0.22 0.28 N/A N/A N/A 0.23 6.48 1.93 * Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2011 2012 2013 14 14 14 86 100% 86 100% 86 100% Insitutions Vs. Individuals Institutions Individuals Total % 4 96 100% 4 96 100% 4 96 100% Sectors Traded Sectors traded on the Stock Exchange Number of Companies Included In Each Sector Main Investore Market Segment Sector "agriculture" Sector "industry" Fixed Income Market Segment Corporate Bonds Government bonds Over the Counter Government debt bonds (OTZ) 2010 2011 2012 2 1 2 1 2 1 2 1 2 1 2 1 2013 5 Most Active Sectors in 2010 # 1 2 Sectors Agriculture Industrial ASEA Y E A R B O O K 79 African Securities Exchanges Association Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ (USD.) Value traded on governmental bonds ($) (OTZ) Value traded on corporate bonds (IFC & BDEAC) Value traded on government bonds (ECMR) 2011 2012 2013 4,503,822.00 121,861,781.80 17,369,107.28 4,056,602.00 - - 21,860.00 329,509.00 100,376.16 447,220.00 121,532,272.00 17,268,731.12 Section Four : Trading System Please specify the Trading System Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: TITAN Yes 3V Finance (Vieil et Tradition - France) 2003 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? ASEA Y E A R B O O K If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: 80 The Stock Exchange Separate Yes Company Central Depository - Caisse Autonome d’Amortissement (CAA) Yes Euroclear 2006 T+ 2 T+ 3 Others Yes African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Yes Cash Market Derivative Market Bond Market Yes Products Product (Stocks, Bonds, Funds, ETF's, Derivatives ..etc) Ordinary shares Government and corporate bonds Description of the Product All common stocks Government bonds issued through the Primary Dealers System Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Section Seven : Indices Index Name Index Type (Price Index, Sector Index,..etc) N/A N/A Section Eight : IPOs 2008 Company SAFACAM Date of IPO - 5/26/2008 Value of IPO ($ million) 6.22 2009 Company - 1/22/2009 Value of IPO ($ million) 32.3 ASEA Y E A R B O O K SOCAPALM Date of IPO 81 African Securities Exchanges Association 2010 Company Date of IPO Value of IPO ($ million) None 2008 Company Date of Issue Face Value of Issue ($ million) None 2009 Company Date of Issue IFC None 23 November 2009 Face Value of Issue ($ million) 42.91 2010 Company Date of Issue BDEAC State Of Cameroon - 29 November 2010 6 December 2010 Face Value of Issue ($ million) 64.38 429.19 Section Nine : 2012 Rankings of Top 5 Trading Participants Ranking 1 Ranking 1 Stockbrokerage Units N/A Dealing Units N/A Purchases $ N/A Sales $ N/A Total $ N/A Purchases $ N/A Sales $ N/A Total $ N/A ASEA Y E A R B O O K Members’ Contacts are available on the websitethe DSX website www.douala-stock-exchange.com 82 African Securities Exchanges Association EGYPTIAN stock exchange profile Website Market Regulator Address Trading Session hours (local time) Time Zone Contact Person for ASEA Telephone Fax E-mail Name of Local Currency Tax Rates (dividends, interest, capital gain) Commodities Exchange www.egx.com.eg The Egyptian Financial Supervisory Authority Over-the-counter, Deals Market 9:45 - 11:15 Orders Market 14: 45- 15:15 (Monday & Wednesday) Listed Securities 10:30 - 14:30 Nilex: 10:30 - 11:30 Primary Dealers Bonds Market 10:30-14:30 Greenwich Mean Time + 2 hours Sara Magdy 202- 23933984- 202-23921402 +202 239 70 461 [email protected] Egyptian Pound Taxes are not applicable on capital gains NA ASEA Y E A R B O O K 83 African Securities Exchanges Association EGX FUTURE OUTLOOK EGX will continue exerting efforts to enhance the efficiency of the market, raise investors’ awareness, promote the financial literacy and improve the communication between EGX and its stakeholders. Moreover, EGX will continue its aggressive marketing plan to attract the big companies to be listed in the market On the other hand, EGX strives to build on its success by accelerating the introduction of a bundle of new investment products and mechanisms into the Egyptian market such Introducing of the first ETFs in 2014, sukuks, activating the bonds market to finance public projects, Activating NILEX to become a financing tool for SMEs. Moreover, EGX is working to develop a new listing rule to attract promising companies and ensure investor protection, turning into a self regulatory organization (SRO) which would allow EGX to conform to international standards in this regard. In addition, EGX continued its awareness campaigns in different governorates about the investment tools available in the market. EXCHANGE BACKGROUND The Egyptian Exchange (EGX) dates back to more than 129 years. Alexandria Stock Exchange was officially established in 1883, followed by Cairo in 1903. The two exchanges were very active as one of the oldest Future Market dated 1940, ranked as the fifth worldwide. Egyptian cotton was among other commodities at that time. Nevertheless, the socialist policies adopted in the mid 1950 have led to a drastic reduction in activity on the stock exchange, which remained dormant during 1961 till 1992. In an attempt to re-activate the market, the government opted for the public offering of the state owned enterprises through the privatization program, which provided the impetus for its revival. In 1997, The Egyptian Exchange (formerly known as Cairo & Alexandria Stock Exchange) started its modernization program in terms of legislation and infrastructure to keep abreast with globalization and internationalization. Stocks, bonds and funds are traded on EGX. In addition to a number of structured products, issued by several international financial institutions, on the Exchange in-house designed index, EGX 30 Index, are listed and traded on various European Exchanges such as EGX 30 Certificates Issuance by The Royal Bank of Scotland (RBS), EGX 30 EUR X-Pert Certificates Issuance by Deutsche Bank, and EGX 30 Open End Certificates Issuance by Goldman Sachs International. ASEA Y E A R B O O K The Exchange continued the journey of expanding its services and products by launching, NILEX. The first SME Market in the MENA region. 84 African Securities Exchanges Association EGX has developed a number of indices which help the investors track the market’s performance. EGX 20 Capped, EGX 30, EGX70, EGX100, Dow Jones EGX Egypt Titans 20 INDEX, and S&P/ EGX ESG Index which is the first corporate governance and social responsibility index in the MENA region in collaboration with the Egyptian Institute of Directors and Standard &Poor’s. The Egyptian Exchange is governed and regulated by the Egyptian Financial Supervisory Authority (EFSA) that is a single regulatory body governing all non banking financial services. EGX do not impose any restrictions on foreign investment or profit repatriation in the Egyptian securities market. No taxes are levied on dividends, capital gain and interest on bonds for individuals, mutual funds and international funds. On the international front, EGX has signed a number of Memoranda of Understanding with various Exchanges as it continues to develop partnerships with regional and global exchanges. The mutual cooperation and sharing of information serve to enrich the strategic planning of the different exchanges whether on the international, regional or individual fronts. In this respect, EGX is sparing no efforts to strengthen its position on the international capital market map through enhancing its relations with other stock exchanges as well as federations and associations belonging to the exchange industry. EGX is • A Board member of WFE (World Federation of Exchanges). • A member of ASEA (African Securities Exchanges Association). • A vice chairmen of FEAS (Federation of Euro-Asian Stock Exchanges). • A founder member of the Union of Arab Exchanges. • An affiliate member of the International Organization of Securities Commissions (IOSCO). Despite the Difficulties EGX Performance is the Best The Egyptian market faced several challenges during year 2013 due to the inconsistent political stance affecting the economic performance. Despite this the Egyptian stock market for the second year in row proved its success in comparison to other investment tools rising by 24% during 2013. Worth mentioning that a rise of 43% took place since 30 June 2013, a distinctive performance that lead to a cumulative return of more than 87% during the past two years. Towards the end of the year the market was able for the first time to surpass January 2011 levels either in terms of indices or market capitalization which gained LE 51 billion during 2013 only. EGX enticing performance placed the market in an advanced ranking among all emerging markets. Egypt ranked second according to MSCI Indices in 2013 and first among all Emerging markets during the past 2 years. This comes despite the economic uncertainty on the short run waiting for the end of the transition period. The growth rate settled at 2.1% for the FY 2012/13 with inflationary pressures exceeding 10% and a devaluing Egyptian pound sealing the year 2013 at LE 6.93 against the dollar accompanied by a noticeable budget deficit. Meanwhile a positive outlook remains for the economic future on the medium and long term following political stability. ASEA Y E A R B O O K On the liquidity front, EGX was able to maintain trading aggregates close to previous year and 85 African Securities Exchanges Association exceeding 2011 trading aggregates. EGX managed to maintain trading records close to 2012 and surpassing the year 2011, registering a trading value of LE 162 billion as opposed to LE 185 billion last year. Moreover, the volume traded soared to reach 29 billion securities in 2013 compared to 34 billion securities in 2012. Likewise, the number of transactions recorded 5 million transactions versus 6 million transactions in 2012. The value traded of the main market amounted to LE 146 billion in 2013 compared to LE 166.5 billion in 2012. Worth mentioning that a deal was executed on National Societe Generale Bank in March 2013, with a value of LE 17 billion. Also, a deal was executed on Orascom Construction Industries in July 2013, with a value of LE 11 billion. Additionally, volume traded of the main market reached 27 billion securities this year as opposed to 33 billion securities in 2012. On the other hand, Over the Counter (OTC) market registered a trading value of LE 15 billion during the year compared to LE 18 billion in 2012. Meanwhile, the OTC trading volume recorded 1.7 billion securities in 2013, compared to 1.4 billion securities last year. The year 2013 witnessed re-activating the Intra-day trading mechanism, in May, which was halted since the 25th of January revolution. Intra-day traded stocks recorded a trading volume of 895 million securities which represents 3 percent of the total volume traded of listed stocks. Moreover, their value traded amounted to LE 2.6 billion, making up around 2 percent of the total value of the listed stocks. Likewise, the number of transactions executed through intra-day trading registered 177 thousand transactions, which accounted for 4 percent of the total number of transactions of the listed stocks. From another perspective, Nilex witnessed a remarkable performance in 2013; this could be attributed to increasing Nilex trading hours to reach four hours. Nilex recorded a trading value of LE 748 million compared to LE 247 million in 2012. Moreover, the trading volume amounted to 254 million securities in 2013 as opposed to 81 million securities last year. EGX. Support the Egyptian Economy In defiance of all the challenges, EGX continued its major role in supporting the Egyptian economy through providing the required financing for companies to expand, grow and provide extra job opportunities.This year 9 new companies were listed and 24 companies have undergone capital increases with around LE 5 billion; four times higher than the previous year’s capital increases. ASEA Y E A R B O O K On this context, EGX released its new strategy for the period 2013-2017. The strategy sets a realistic ambitious plan to place EGX among the leading Exchanges and consolidate its grounds as an influential Emerging market aiding in the economic development process The primary goal is to enhance the legislative and regulatory infrastructure of the market. Second comes the development of the trading system, whilst increasing its efficiency. The third goal is concerned with the augmentation of the Technological infrastructure. Fourth is increasing promotional activities and awareness. 86 Finally, emphasizing EGX role in enhancing the economic and social welfare while reinforcing its international position. African Securities Exchanges Association On the other hand, EGX management continued its efforts to enhance the trading environment, increasing efficiency and effectiveness for all market participants. This year the market witnessed several developments while ensuring the smooth continuation of trading regardless of the instability. Meanwhile, EGX is nearly done with the ETFs file in cooperation with the related parties arranging for its launch in the market. Also, EGX concentrated on activating the bond market in agreement with the ministry of finance, central bank and the primary dealers by allocating a ratio of the treasury bonds issued to retail investors in order to be traded through member firms. This will lead to a surge in the bond market performance during the coming period; likewise, EGX targets the development of the OTC market through issuing regulations for the unification and standardization of the orders and deals operations. Accordingly, this solved the problems in the operations carried out in 2013 while finalizing the pending operations from previous years executing a large number of them. From another perspective, EGX has undertaken several initiatives to attract more investments to the local market, on top of them was the launch of the FIX HUB which facilitates foreign investors’ entry to the Egyptian market by linking EGX to 175 international markets via the international linking network (Fidessa) through which more than US$ 800 billion are currently being traded. This step is expected to enhance the Egyptian market liquidity at a lower cost. Moreover, the Egyptian exchange has given priority to enhancing the disclosure and transparency standards for the listed companies. A new layout for a monthly disclosure report has been published requiring listed companies to provide information about the stocks on a monthly basis. This aims to improve the quality of information provided to the investors. On the other hand EGX launched the new version of its website on the internet providing investors with real time data. In addition to revamping the dissemination of material events on the website to match its disclosure timing on the trading screens to ensure timely access to news among all investors. We have to clarify that, year 2013 is considered the golden year for Nilex achieving an unprecedented performance during the year. Trading volumes more than doubled, and trading values surged to around LE 748 million .Moreover, 5 new companies have been listed on Nilex this year from different sectors raising the total number of listed companies to 24 companies. Worth mentioning this year witnessed the IPO of 2 companies with coverage ratios between 55 times and 67 times. This reflects the liquidity available for investment in companies listed on NILEX. On the other hand the new institutions in the market are a result of the ongoing efforts for promoting the opportunities within the Egyptian market. More than 1200 new institution entered the market three quarters of which are foreign institutions entering the market for the first time. ASEA Y E A R B O O K 87 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Indicators Population (million) Real GDP (USD) (billion) at market exchange rates Inflation rate (Urban) (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (91 Days T-Bills) % Exchange rate (local currency versus US $) ASEA Y E A R B O O K * End of December 88 2010 / 2011 80.4 236.116 2011 / 2012 82.3 254.55 2012 / 2013 85.2 271.93 11.8 2188.6 7.26 2078.2 11.66* 3004.7 11.8 12.1 12.6 14.75 12.7 10.53 5.81 6.059 6.93 ASEA Y E A R B O O K 24% 34.09 34.0 61,512,466,261.42 51,688,215,519 60,097,919,773.00 22.73% 206 220 204 27 24% 212 213 213 4,790,280.00 6,233,096.00 29,190,092,844.00 18,490,172,527.00 34,221,343,688.00 5,589,676.00 2013 23,331,247,688.79 2011^^ 2012 24,571,443,698.40 23,402,696,671.99 * Turnover Ratio (%)= value traded of listed stocks/market capitalization ** after excluding deals ^ it represtents the trading figures for the main market. Worth mentioning that Nilex market (SMEs Market) has been launched since 2007 and trading has been commenced on Nilex on 3 June 2010, whereby there were 24 companies listed on Nilex at the end of 2010, with a market capitalization of USD 172 million. ^^ EGX was closed from 28 January - 22 March after the revolution. Indicators 2007 2009 2010 Total Value 65,834,904,722.82 81,707,244,812.59 55,360,550,000.00 traded $ (USD) Total volume 15,091,289,631.95 36,601,431,681.00 33,429,372,218.00 traded Total number of 9,016,116.00 14,627,805.00 10,201,219.00 transactions 435 306 212 Number of listed companies ^ Number 337 289 213 of traded companies ^ Market 139,319,168,585 91,080,506,444 84,102,973,825 Capitalization end of year (USD) ^ Market 85.79% 41.40% 40.46% Capitalization as % of GDP Turnover 38.7 49.9** 42.9 velocity (%) * Trading equity Statistics Section Two : Trading Statistics African Securities Exchanges Association 89 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2007 31.00 69.00 100% 2009 19.00 81.00 100% 2010 22.00 78.00 100% 2011 29.00 71.00 100% 2012 26.90 73.1 100% 2013 20.5 79.50 100% 52.00 48.00 100% 59.00 41.00 100% 56.40 43.60 100% 49.2 50.80 100% Insitutions Vs. Individuals Institutions Individuals Total % 39.00 61.00 100% 37.00 63.00 100% * After excluding deals Sectors Traded ASEA Y E A R B O O K Sectors traded on the Stock Exchange 90 Number of Companies Included In Each Sector 2011 2012 2013 Banks Basic Resources Chemicals Construction & Materials 12 9 7 26 10 7 7 21 11 9 7 24 Financial Services excluding Banks Food & Beverages Healthcare & Pharmaceuticals Industrial goods & Services and Automobiles Media Oil & Gas Personal & Household products Real Estate Retail Technology Telecommunications Travel & Leisure 29 22 27 27 14 17 26 9 15 27 16 17 1 3 11 1 2 8 1 3 10 29 5 3 3 16 31 7 3 3 11 30 4 3 4 18 1 1 1 Utilities African Securities Exchanges Association 5 Most Active Sectors in 2013 # 1 2 3 4 5 Sectors Telecommunications Financial Services excluding Banks Real Estate Construction and Materials Personal and Household Products *Most Active Sectors in terms of Volume Traded ASEA Y E A R B O O K 91 ASEA 92 96,857,434.06 37,627,167.60 5,056,289,649.99 3,600,159,602.44 10,841,835,284.13 29,852,911.84 2011 5,093,916,817.59 2008 2010 3,630,012,514.28 10,938,692,718.20 *Please note that government bonds are not traded on the exchange. **Including bonds issued by public firms. Bonds Total Value traded $ (USD) Value traded on governmental bonds Value traded on corporate bonds Bonds Statistics Section Three: Bonds Statistics Y E A R B O O K 10,897,526.73 6,103,408,531.93 2012 6,114,306,058.65 2,680,656.04 4,147,421,670.08 2013 4,149,396,131.78 African Securities Exchanges Association African Securities Exchanges Association Section Four : Trading System Trading System ( X-Stream ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought NASDAQ OMX Group 2008 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock No Exchange Separate Yes Company If Separate Company please mention its Misr for Central Clearing, Depository and name Registry (MCDR) Is this system locally developed or Yes bought? If bought, who is the Vendor? N/A Year of implementing the system: N/A Clearing and Settlement is conducted in: T+ 2 Yes T+ 3 Yes (OTC) Others T+Zero for the securities eligible for Intra-day trading (Real Time Gross Settlement)* T+1 for treasury bonds traded according to the Primary Dealers system Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes N/A Yes ASEA Y E A R B O O K 93 African Securities Exchanges Association Products Product (Stocks,Bonds, Funds,ETF's,Derivatives ..etc) Stocks Description of the Product All common stocks as well as 3 companies with preferred stocks Government and Corporate bonds with the bulk owed to Treasury Bonds Issued through the Primary Dealers System Closed Ended Funds EDRs are certificates issued by a custodian bank, which represent ownership of a specific number of shares of a foreign company, that can be listed and traded on EGX Rules and Regulations are issued Bonds Mutual Funds Egyptian Depository Receipts (EDRs) ETFs Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes* Yes* Yes Section Seven : Indices Indices ASEA Y E A R B O O K Index Name EGX 30 (Main index) EGX 70 EGX 100 Dow Jones EGX Egypt Titans 20 Index S&P/EGX ESG Index EGX 20 Capped Index 94 Index Type (Price Index, Sector Index,..etc) free float market capitalization weighted index Price Index Price Index Free float market capitalization weighted index Enviornmental, Social and Governance Index Free float market capitalization weighted index African Securities Exchanges Association Closing 2010 EGX 30 EGX 70 EGX 100 DJ EGX Egypt Titans 20 S&P/EGX ESG Index EGX 20 Capped Index Banks Banks Real Estate Chemicals Healthcare & Pharmaceuticals Personal & Household Products Financial Services excluding Banks Industrial Goods, Services & Automobiles Construction & Materials Basic Resources Food and Beverages Travel & Leisure Telecommunications Closing 2011 Closing 2012 Closing 2013 % Change 7,142.14 721.54 1166.24 1532.78 3,622.35 415.59 643.07 816.78 5,462.42 477.08 800.35 1,211.41 6782.84 542.19 923.15 1476.83 24% 14% 15% 22% 1112.69 597.96 925.84 1062.3 15% 8024.25 3925.48 6342.16 7899.74 25% Closing 2010 1,352.26 904.72 1,486.09 Closing 2011 911.67 440.82 675.43 1,244.48 Closing 2012 1,657.20 783.01 724.63 1,408.79 Closing 2013 2,210.76 983.04 911.24 1,501.12 % change 33% 26% 26% 7% 609.14 458.60 518.47 604.49 17% 810.58 357.25 467.50 417.61 -11% 1,819.58 893.27 994.52 1,206.53 21% 1,610.63 1,129.22 1,403.86 1,630.31 16% 813.92 1,014.33 571.57 422.13 192.25 602.11 195.28 276.37 472.44 939.48 240.95 468.58 687.37 1,675.16 275.68 566.33 45% 78% 14% 21% ASEA Y E A R B O O K 95 African Securities Exchanges Association Section Eight : IPOs 2012 Company Brothers Solidarity For Real Estate Investment & Food Security* Vertika* IPO Thousand shares Date of IPO Value of IPO ($ million) 400 84.167 117.6 1.07 Total 85.24 * Nilex Market 2013 Date of issue Dec-12 Mar-11 Total Listing date March 2013 April 2012 Face Value of Issue ($ million) 110.04 9.68 119.72 2012 ASEA Y E A R B O O K Date of issue Dec-10 Jul-11 Total 96 Listing date March 2011 September 2011 Face Value of Issue ($ million) 69.63 58.02 127.65 African Securities Exchanges Association Section Nine : 2012 Rankings of Top 5 Trading Participants Broker Name Beltone Securities Brokerage Commercial International Brokerage Company (CIBC) National Bank Of Egypt Hermes Securities Brokerage Commercial International Brokerage Company (CIBC) Value Traded in USD (Buy) 2,399,582,131 Value Traded in USD (Sell) Total in USD 209,550,499 2,609,132,630 1,759,590,076 314,946,925 2,074,537,001 1,269,352,730 927,848,688 2,197,201,417 1,031,268,609 993,597,704 2,024,866,313 971,868,647 1,032,299,780 2,004,168,427 *In the Main Market 2012 Rankings of Top 5 Trading Participants Broker Name Beltone Securities Brokerage Commercial International Brokerage company (CIBC) Financial Brokerage Group Hermes Securities Brokerage Pioneers Securities Value Traded in Value Traded in USD USD (Buy) (Sell) 3,610,400,843 2,793,539,205 Total in USD 6,403,940,048 1,358,753,812 1,524,811,230 2,883,565,042 1,231,012,304 1,444,185,071 2,675,197,375 1,302,993,607 1,338,433,439 2,641,427,046 989,589,103 974,975,064 1,964,564,166 Members’ Contacts are available on the EGX website www.egx.com.eg ASEA Y E A R B O O K 97 African Securities Exchanges Association ghana stock exchange profile www.gse.com.gh Securities and Exchange Commission (SEC), Ghana Address No. 30 3rd Circular Road, Cantonments, Accra, P.O.Box CT 6181, Cantonments, Accra, Ghana Trading Session hours (local time) 09h30 - 15h00 (Official Trading Hours) Time Zone Greenwich Mean Time (GMT) Contact Person for ASEA Diana Okine Telephone +233 0302 669908 or 233 0302 669914 Fax 233 0302 669913 E-mail [email protected] ; [email protected] Name of Local Currency Ghana Cedi Tax Rates (dividends, interest, capital gains) 8% withholding tax on dividends, 0% tax on capital gains, no stamp duty Listing of Foreign Domiciled Companies Available Commodities Exchange Not available ASEA Y E A R B O O K Website Market Regulator 98 African Securities Exchanges Association Background of the Ghana Stock Exchange The Ghana Stock Exchange was established in July 1989 as a private company limited by guarantee under the Ghana Companies Code, 1963. It was given recognition as an authorized Stock Exchange under the Stock Exchange Act of 1971 (Act 348) in October 1990. The Exchange was inaugurated on November 12, 1990 and trading commenced on its floor the same day. The Exchange was officially launched on January 11. 1991 and became a public company limited by guarantee in April 1994. The Ghana Stock Exchange is a private sector initiative and is not funded by government. It has however, enjoyed the support of the Government of Ghana since inception. The Exchange is governed by a nine member Council - two representatives each from Licensed Dealing Members and Listed Companies, three independent members and two Executive Directors of the Exchange. The Council’s Membership includes some of the most distinguished and competent persons in Ghanaian commerce, industry, finance and public service. The Council has all the powers and functions of a Board under the Companies Acts. By virtue of the Stock Exchange Act 1971, such functions include preventing frauds and malpractices, maintaining good order among members, regulating stock market business, granting listing and publishing prices as well as maintaining public confidence in the market and promoting the Exchange. Trading takes place daily from Monday to Friday from 9.30am to 15.00pm (GMT). It currently has twenty (20) Licensed Dealing Members. Trading on the Exchange is done through the GSE Automated Trading System (GATS) using three alternative levels of access namely; on the trading floor of the Exchange, at the office of the stockbroker through the Wide Area Network (WAN) or through the internet. Settlement cycle is T+3. Trade commissions have been liberalized however the maximum commission chargeable by an LDM is 2.5% of the value of the transaction Recent Performance / Latest Development The Ghana Stock Exchange in 2013 experienced another outstanding performance of listed equities since its establishment in 1990 in spite of challenging macro-economic conditions. The exceptional 2013 performance was buoyed largely by increased investor awareness and good operating results of many of the listed companies as well as the 2nd Tier Pension Fund Managers’ participation in the market which started in November 2012 supported by the renewed investor confidence in the Ghanaian market and economy. Index Performance The GSE – Composite Index (GSE-CI) recorded a year to date gain of 78.81% ending the year with 2,145.20 point while the GSE Financial Stock Index (GSE-FSI) also recorded a return of 71.81% ending the year with 1,784.05points. The return on index recorded on the Ghana Stock Exchange for the year 2013 makes the Exchange one of the best performing stock market in Sub-Saharan Africa. The GSE-CI and the GSE-FSI recorded a return of 23.81% and 20.94% in December 2012. ASEA Y E A R B O O K 99 African Securities Exchanges Association Market Capitalization Market capitalization of listed securities at the end of December 2013 was GH¢61,158.29million compared to the December 2012 end figure of GH¢57,264.22million, an increase of 6.80%. Domestic Market capitalization recorded a 76.68% increase ending December 2014 with GH¢11,694.93 compared to GH¢6,753.14 recorded for the same period in 2012. This clearly shows that there were more price increases in the primary listings on the market. Turnover Market turnover in 2013 was positively impacted by the increased activities on the floor of the Exchange. Volume of shares traded for the year stood at 313million shares valued at GH¢456.14million. This represents a significant 143.5% and 446% over the volume and value of 218million shares and GH¢102.19m respectively recorded at the end of December 2012. Listed Company Performance Listed companies recorded improved company performances in terms of share price appreciation for the year under review. Interestingly, some of the listed companies recorded returns higher than the GSE-CI gain of 78.81%. Out of the 34 companies listed on the GSE, ten companies made gains of more than 100% with PZ Cussons (PZC) leading the pack with 338.89%. The rest were Enterprise Group Ltd (EGL) – 291.67%; CAL Bank Ltd (CAL)– 155.26%; Mechanical Lloyd Co. Ltd (MLC) – 153.33%; Guinness Ghana Breweries Ltd ( GGBL) – 136.64%; GCB Ltd (GCB) – 130.95%; Benso Oil Palm Plantation (BOPP) – 129.29%; Societe General (SOGEGH) – 120.59%; Unilever Ghana Ltd (UNIL) – 114.91%; and HFC Bank Ltd (HFC) – 113.33%;. Five companies recorded gains of 50% and above. This category was also led by Ecobank Ghana Ltd (EBG) with 87%; Fan Milk Ltd (FML) – 86.48%; TOTAL Ghana Ltd (TOTAL) – 72.33%; Ecobank Transnational Inc (ETI) – 58.33%; and Sam Woode Ltd (SWL) – 50%. Similarly, five companies recorded gains of up 50%. There were however, eight companies with no change in their share prices. On the other hand, TRANSOL led the losers on the market with a significant loss of 25% in its share price among five other companies that lost between 20% 5% in their share prices. Latest Developments ASEA Y E A R B O O K • GSE Securities Depository Ltd, a wholly owned subsidiary of the Ghana Stock Exchange, merged with Bank of Ghana’s Central Securities Depository. An agreement to that effect was signed on December 24, 2013. The merger became effective on January 1, 2014. • For the first time, the Government of Ghana listed its ten year 2nd Eurobond of US$1billion in August 2013 and the GOG’s GH¢101.57million 17.5% seven year bond was also listed for first time. • The Capital requirement of Licensed Dealing Members (LDMs) changed from GH¢100,000 to GH¢1million in December 2013. LDMs have up to March 2014 to comply. • New Market dedicated for small and medium size companies and start-ups (Ghana Alternative Market) took off. Two companies have accessed the Listing Support Fund already: Processed Food and Spices Ltd and Meridian Marshall Holdings Ltd. • Efforts at Integration of West African Capital markets made good progress. First phase expected to be implemented in the first quarter of 2014. 100 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Indicators Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) Exchange rate (local currency versus US $) 2010 24.30 2011 24.20 2012 25.2 2013 25.2 30 29 31 14,968.52 8.5 N/A 8.5 81 9.3 4,904 13.2 3,946.41 11.0 11.2 11 12.10 22.53 12.57 13.50 19% 1.47 1.66 1.88 2.16 Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies (Domestic)† Number of listed companies (Foreign)‡ Number of traded companies Domestic Market Capitalization (millions) end of year¤ Market Capitalization as % of GDP Turnover Velocity (%) *** 2013 211,176,236.80 313,024,312 34,152 29 5 34 5414.32 189.16% 3.85% ***Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). ASEA The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts ¤ Y E A R B O O K †Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. 101 African Securities Exchanges Association Investors Type Foreigners vs . Local Investors Type of Investors % of the Total Value traded $ 2010 N/A N/A Foreign Investors Local Investors Total % 2011 N/A N/A 2012 N/A N/A 2013 49.69% 50.31% 100% Institutions Vs.Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A 90.05% 9.95% 100.00% Sectors Traded Sectors traded on the Stock Exchange Number Of Companies Included In Each Sector 2010 2011 2012 2013 8 4 3 2 9 4 3 2 9 4 3 2 2 10 3 1 0 2 10 3 1 1 2 10 3 1 1 Domestic Board Finance Distribution Food and Beverage ICT Insurance Manufacturing Mining Agriculture Exchange Traded Fund (ETF) 5 Most Active Sectors in 2013 ASEA Y E A R B O O K # 1 2 3 4 5 102 Sectors Finance Distribution Insurance Food and Beverages Manufacturing African Securities Exchanges Association Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 2011 2012 N/A 2013 472,522,755.00 N/A 472,522,755.00 N/A N/A Section Four : Trading System Trading System ( GATS ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Yes Infotech Global Pty (ltd) 2009 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange Separate Company Yes Internally Infotech Global Pty (Ltd) 2009 T+ 2 T+ 3 Others Yes ASEA Y E A R B O O K 103 African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes Yes Products Product (Stocks,Bonds, Funds, ETF's, Description of the Product Derivatives, etc.) Stocks Ordinary Shares, Preference Shares, one depository shares Bonds Government Bonds, Euro Bond ETF 1 (Gold) Section Seven : Trading Mechanism ASEA Y E A R B O O K Margin Trading Intraday Trading Online Trading 104 Yes No Yes African Securities Exchanges Association Section Seven : Indices Indices Index Name GSE Composite Index (GSE-CI) GSE Financial Stocks Index (GSE-FSI) Index Type (Price Index, Sector Index,..etc) The calculation of the GSE Composite Index (GSE-CI) is based on the volume weighted average closing price of all listed stocks. All ordinary shares listed on GSE are included in the GSE-CI at total market capitalization, with the exception of those of listed companies which have shares listed on other markets. The GSECI is a market capitalization weighted index, i.e. each constituent is given weight according to its market capitalization. The base date for the GSE-CI is December 31, 2010 and the base index value is 1000. This index have its constituents as listed stocks from the financial sector including banking and insurance sector stocks. All ordinary shares of the financial stocks listed on GSE are included in the GSE-FSI at total market capitalization, except for those of stocks which are listed on other markets. The base date of GSE-FSI is also December 31, 2010 and the base index value is 1000. 2012 GSE-CI GSE-FSI Closing 2012 1,199.72 1,039.86 Closing 2013 2,145.20 1,786.60 % Change 78.81 71.81 2013 Company None Date of IPO N/A Value of IPO ($ million) N/A ASEA Y E A R B O O K 105 African Securities Exchanges Association Section Eight : IPOs ASEA Y E A R B O O K 2012 106 Company GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG GOG Date of Issue GHGGOG026477 GHGGOG026519 GHGGOG026550 GHGGOG026592 GHGGOG026634 GHGGOG026675 GHGGOG026717 GHGGOG026758 GHGGOG026808 GHGGOG026766 GHGGOG026840 GHGGOG026915 GHGGOG026964 GHGGOG027012 GHGGOG027061 GHGGOG027103 GHGGOG027145 GHGGOG027194 GHGGOG027236 GHGGOG027285 GHGGOG027327 GHGGOG027392 GHGGOG027442 GHGGOG027400 GHGGOG027665 GHGGOG027731 GHGGOG027517 GHGGOG027590 GHGGOG027558 GHGGOG027806 GHGGOG027871 GHGGOG027947 GHGGOG028010 GHGGOG028085 GHGGOG028150 GHGGOG028226 GHGGOG028291 GHGGOG028374 GHGGOG028440 Face Value of Issue 2 January 2012 $5,885,718.09 9 January 2012 $1,417,686.17 16 January 2012 $615,742.02 23 January 2012 $659,329.26 30 January 2012 $1,989,940.43 6 February 2012 $186,409.57 13 February 2012 $486,188.83 20 February 2012 $3,745,319.15 27 February 2012 $1,343,842.02 27 February 2012 $116,885,638.30 5 March 2012 $1,867,613.83 12 March 2012 $2,185,679.79 19 March 2012 $2,764,482.98 26 March 2012 $4,195,231.91 2 April 2012 $1,343,842.02 9 April 2012 $9,218,923.94 16 April 2012 $2,762,579.79 23 April 2012 $1,099,700.53 30 April 2012 $12,605,064.36 7 May 2012 $58,095,058.51 14 May 2012 $782,304.26 21 May 2012 $17,897,605.85 28 May 2012 $11,138,705.32 28 May 2012 $284,129,550.53 18 June 2012 $13,636,711.70 25 June 2012 $10,505,919.15 4 June 2012 $16,956,561.70 11 June 2012 $1,855,652.66 11 June 2012 $142,170,212.77 2 July 2012 $9,916,156.91 9 July 2012 $19,820,289.89 16 July 2012 $13,111,631.91 23 July 2012 $18,935,308.51 30 July 2012 $23,387,460.11 6 August 2012 $43,061,571.28 13 August 2012 $14,676,664.89 20 August 2012 $5,569,546.28 27 August 2012 $56,585,572.87 3 September 2012 $15,253,488.30 African Securities Exchanges Association Company GOG GOG GOG GOG GOG Date of Issue GHGGOG028523 GHGGOG028606 GHGGOG028697 GHGGOG028770 GHGGOG028333 Face Value of Issue 10 September 2012 $3,922,893.62 17 September 2012 $27,686,004.26 24 September 2012 $31,569,063.83 1 October 2012 $33,103,824.47 27 August 2012 $477,995,212.77 TOTAL $1,523,021,905.32 ASEA Y E A R B O O K 107 African Securities Exchanges Association 2013 ASEA Y E A R B O O K Company 108 GHGGOG029877 GHGGOG029968 GHGGOG029927 GHGGOG030032 GHGGOG030107 GHGGOG030172 GHGGOG030248 GHGGOG030313 GHGGOG030388 GHGGOG030453 GHGGOG030537 GHGGOG030495 GHGGOG030602 GHGGOG030685 GHGGOG030750 GHGGOG030826 GHGGOG030891 GHGGOG030966 GHGGOG031030 GHGGOG031105 GHGGOG031170 GHGGOG031246 GHGGOG031311 GHGGOG031410 GHGGOG031378 GHGGOG031493 GHGGOG031568 GHGGOG031634 GHGGOG031717 GHGGOG031782 GHGGOG031865 GHGGOG031931 GHGGOG032004 GHGGOG032095 GHGGOG032160 GHGGOG032236 GHGGOG032319 GHGGOG032400 GHGGOG032509 GHGGOG032277 Date of Issue 7 January 2013 14 January 2013 14 January 2013 21 January 2013 28 January 2013 4 February 2013 11 February 2013 18 February 2013 25 February 2013 4 March 2013 11March 2013 11 March 2013 18 March 2013 25 March 2013 1 April 2013 8 April 2013 15 April 2013 22 April 2013 29 April 2013 6 May 2013 13 May 2013 20 May 2013 27 May 2013 3 June 2013 3 June 2013 10 June 2013 17 June 2013 24 June 2013 1 July 2013 8 July 2013 15 July 2013 22 July 2013 29 July 2013 05 August 2013 12 August 2013 19 August 2013 26 August 2013 02 September 2013 09 September 2013 26 August 2013 Face Value of issue ($ million) 10.41 184.97 402.07 225.96 31.80 46.47 193.15 69.21 30.08 86.96 13.31 416.00 44.27 55.81 9.51 5.32 226.87 71.55 5.96 6.02 5.05 251.67 15.21 82.12 489.40 40.96 32.55 24.13 12.68 1.48 3.43 5.07 32.46 3.24 5.41 4.41 6.85 40.21 8.05 101.57 African Securities Exchanges Association Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 5 Stockbrokerage Units Databank Brokerage Ltd. African Alliance Securities Ltd. IC Securities Ltd. HFC Brokerage Services Ltd. SBG Securities Ghana Ltd. Purchases $ Sales Total $ $ 121,043,780.00 104,087,578.00 225,131,358.00 76,905,829.00 80,292,914.00 157,198,743.00 67,324,637.00 57,420,016.00 69,876,414.00 48,893,793.00 137,201,051.00 106,313,809.00 40,750,089.00 23,729,013.00 64,479,102.00 ASEA Y E A R B O O K 109 African Securities Exchanges Association Johannesburg stock exchange profile www.jse.co.za Johannesburg Stock Exchange (JSE) One Exchange Square, Gwen Lane, Sandown, Sandton Trading Session hours (local time) 09h00 - 17h00 (Official Trading Hours for the Equity Market) Time Zone +2 GMT Contact Person for ASEA Geoff Rothschild Telephone +27 11 520 7391 or +27 11 520 7114 Fax 27 11 520 8584 E-mail [email protected] Name of Local Currency Rand Tax Rates (dividends, interest, capital gains) 0% tax on interest, 15% tax on dividends, 10% tax on capital gains , 0.25 % = Securities Transfer Tax Listing of Foreign Domiciled Companies Available Commodities Exchange Available ASEA Y E A R B O O K Website Market Regulator Address 110 African Securities Exchanges Association INTRODUCTION The JSE aims to be recognised as the South African exchange providing the leading fully integrated financial market for African securities as well as an effective gateway to international products and markets for African investors. The JSE is a vertically and horizontally integrated, fully electronic exchange offering issuance, trade and post-trade services (vertical) across five markets – namely equity, equity derivatives, commodity derivatives, spot and derivative interest rate products, and currency derivatives (horizontal). As a self-regulating organisation, the JSE regulates issuers and investors in terms of the Securities Services Act, 2004, and is supervised by the exchange’s regulator, the Financial Services Board. The exchange also packages and sells market-related data. We continue to diversify our product range across all markets and are recognised for our innovative ability to structure products that meet client needs. We employ approximately 500 people directly and are a key part of South Africa’s financial services ecosystem, which has a significant role in the economic development of a wide range of stakeholders. 2011 marked a time of significant milestones for the JSE including our fifth year as a listed company, robust operational performance in all our divisions and the seamless transition of leadership from our long time CEO Russell Loubser to new JSE CEO Nicky Newton-King who began in January 2012. History of JSE 2009 In June the Competition Tribunal gave approval to the JSE to acquire the entire issued share capital of BESA 2010 Ranked No 1 Regulated Stock exchange by the World Economic Forum Competitiveness Report 2011 Ranked No 1 Regulated Stock exchange by the World Economic Forum Competitiveness Report ASEA Y E A R B O O K 111 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Indicators Population (million)* Real GDP (USD) (billion) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%)** Interest Rate (91 Days T-Bills) % Exchange rate (local currency versus US$) 2010 50.9 251.7 2011 51.6 262.3 2012 52.3 238.3 2013 53.0 4.3 3,710.8 5.0 4,504.7 5.6 1,571.3 5.7 23.9 6.4 23.8 5.5 24.5 5.3 24.1 5.1 7.3 7.3 8.2 9.7 * Mid-year population estimates. Source: Statistics South Africa ** QLFS survey as at Q4 Section Two : Trading Statistics Trading equity Statistics 9.639462 Indicators Total Value traded $ (USD) Total volume traded ASEA 2012 2013 408,628,960,228 413,053,999,182 71,463,833,873 61,843,720,761 63,891,885,187 23,758,618 26,504,221 26,934,622 38,964,070 Number of listed companies 407 406 400 386 Number of traded companies 386 385 375 361 Market Capitalization (billions) end of year (USD) 981,436,975,987 845,584,062,317 998,343,749,374 1,102,369,022,272 Market Capitalization as % of GDP** 30.91 40.93 55.25 Turnover Velocity (%) * Y E A R B O O K 2010 71,251,655,807 Total number of transactions 112 2011 438,087,637,674 402,299,570,059 43.26 46.25 * Turnover Velocity (%)= Value traded of domestic equities/domestic equities market capitalization African Securities Exchanges Association Investors Type Foreigners vs . Local Investors Type of Investors % of the Total Value traded $ 2010 15.63 84.37 100 Foreign Investors Local Investors Total % 2011 14.35 85.65 100 2012 15.35 84.65 100 2013 16.22 83.78 100 Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ASEA Y E A R B O O K 113 African Securities Exchanges Association Sectors Traded Number of Companies Included In Each Sector Sectors traded on the Stock Exchange Domestic Board 2010 2011 2012 2013 Automobiles & Parts 2 2 2 3 Banks 7 7 6 6 Beverages 4 4 4 4 Chemicals 7 6 6 6 31 29 28 27 Corporate Debt 1 1 1 1 Electricity 2 2 2 2 Electronic & Electrical Equipment 15 16 17 15 Equity Investment Instruments 10 12 15 13 Financial Services 25 24 27 28 Fixed Line Telecommunications 2 1 1 2 Food & Drug Retailers 5 5 6 6 Food Producers 16 16 16 16 Forestry & Paper 4 4 4 4 General Industrials 9 11 11 11 18 21 24 23 Health Care Equipment & Services 4 4 5 5 Household Goods & Home Construction 2 2 2 2 Industrial Engineering 10 6 8 8 Industrial Metals & Mining 13 14 12 11 Industrial Transportation 8 7 8 8 Leisure Goods 2 2 2 1 Life Insurance 6 6 6 6 Media 6 6 9 6 Mining 53 55 61 59 Mobile Telecommunications 5 5 5 3 Nonlife Insurance 4 3 3 3 Oil & Gas Producers 3 3 5 5 Other Securities 1 1 50 33 Personal Goods 4 4 5 5 Pharmaceuticals & Biotechnology 5 5 5 5 Preference Shares 8 8 42 40 26 29 43 20 Real Estate Investment Trusts 7 7 7 34 Software & Computer Services 18 14 17 16 Support Services 21 23 20 18 Technology Hardware & Equipment 6 6 6 6 Tobacco 1 1 1 1 15 13 14 12 Construction & Materials General Retailers ASEA Y E A R B O O K Real Estate Investment & Services 114 Travel & Leisure African Securities Exchanges Association 5 Most Active Sectors in 2013 Rank Sector Volume Traded Rank 1 Mining 9,903,109,578 1 2 Banks 5,272,198,048 2 3 Life Insurance 4,280,662,854 3 4 Financial Services 4,218,859,419 4 5 Real Estate Investment & Services 3,804,759,699 5 6 Real Estate Investment Trusts 3,377,250,952 6 7 General Retailers 2,732,447,118 7 8 Warrants 2,613,914,139 8 9 Mobile Telecommunications 2,241,320,944 9 10 General Industrials 1,975,980,695 10 11 Household Goods & Home Construction 1,880,441,115 11 12 Health Care Equipment & Services 1,866,576,501 12 13 Construction & Materials 1,819,209,493 13 14 Personal Goods 1,625,376,707 14 1,575,753,943 15 1,315,824,336 16 17 Food & Drug Retailers 1,276,633,805 17 18 Exchange Traded Funds 1,268,195,616 18 19 Pharmaceuticals & Biotechnology 1,258,193,709 19 20 Investment Products 1,202,035,172 20 21 Food Producers 953,499,799 21 22 Oil & Gas Producers 836,869,419 22 23 Forestry & Paper 732,139,044 23 24 Electronic & Electrical Equipment 719,468,202 24 25 Industrial Transportation 693,824,516 25 26 Beverages 690,030,119 26 27 Support Services 611,383,364 27 28 Media 506,325,248 28 29 Industrial Engineering 479,299,790 29 30 Industrial Metals & Mining 468,145,383 30 31 Travel & Leisure 405,800,986 31 32 Fixed Line Telecommunications 273,955,724 32 33 Tobacco 235,787,512 33 34 Chemicals 167,736,036 34 35 Technology Hardware & Equipment 163,930,018 35 36 Preference Shares 148,701,339 36 37 Other Securities 105,436,623 37 38 Automobiles & Parts 87,201,106 38 39 Leisure Goods 32,415,879 39 40 Corporate Debt 28,139,283 40 41 Exchange Traded Notes 26,439,117 41 42 Nonlife Insurance 13,690,003 42 43 Electricity 2,920,282 43 44 Kruger Rands 3,106 44 ASEA Software & Computer Services Equity Investment Instruments Y E A R B O O K 15 16 115 ASEA 116 2,423,734,951,761 63,748,455,870 2,326,957,805,323 63,708,864,073 Value traded on governmental bonds ($) Value traded on corporate bonds 2,487,483,407,631 2011 2,390,666,669,396 2010 Total Value traded $ Bonds Bonds Statistics Section Three: Bonds Statistics Y E A R B O O K 97,765,844,327 2,572,531,909,001 2,670,297,753,328 2012 55,571,870,420 2,011,383,919,753 2,066,955,790,173 2013 African Securities Exchanges Association African Securities Exchanges Association Section Four : Trading System Name of the Trading System Bought Vendor Equity Market Millennium IT Equity Derivatives Nutron Commodity Currency Derivatives Derivatives Nutron Nutron Interest Rate Market Nutron Yes Millennium IT Yes Securities Trading Technology 2008 Yes Securities Trading Technology 2008 Yes Securities Trading Technology 2010 Year of 2012 Implementation Yes Securities Trading Technology 2008 Section Five : Clearing and Settlement Clearing & Settlement place Equity Equity Market Derivatives Stock SAFCOM Exchange Vendor Year of 1990 Implementation Clearing and T+5 settlement Securities Trading Technology 2008 Commodity Currency Derivatives Derivatives SAFCOM SAFCOM Securities Trading Technology 2008 Securities Trading Technology 2008 Interest Rate Market STRATE Securities Trading Technology 2010 T+3 Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Equity Derivatives Market Commodity Derivatives Market Interest Rate Market Currency Derivatives Market Yes Yes Yes Yes Yes ASEA Y E A R B O O K 117 African Securities Exchanges Association ASEA Y E A R B O O K Equity Market 118 Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Description of the Product B-Ordinary Shares B- Ordinary shares are subject to the the Articles of Association of the company concerned. Holders of B-Ordinary shares have fewer or no voting rights and may not have a right to any repayment of capital when a company is wound up. Debentures A Debenture is a type of debt instrument, similar to a bond, that is not secured by physical assets or collateral. Debentures are documented in an indenture which is a written agreement between the issuer and holder and sets out specific rights as to repayment of capital and interest. Depository Receipts South African Depository Receipts (SADRs) are not actual shares of stock, but receipts representing shares. They are handled and traded just like shares. They offer the same economic, corporate and voting rights enjoyed by investors holding underlying shares directly. A SADR may represent one share, several shares or a fraction of a share, so its price may differ from that of the share it represents, but should still be reflective of the price. Depository Receipts have become a globally accepted, flexible instrument, enabling issuers to reach investors located outside their home markets while reducing the risk of cross-border investment, eg. foreign legislation, transaction costs and delays, currency exposure as well as complicated settlement transaction processes. Exchange Traded Funds (ETFs) Exchange Traded Funds (ETFs) are listed investment products that track the performance of a basket of shares, bonds or commodities. These “baskets” are known as indices, for example the FTSE/JSE Top 40 Index. An ETF can be bought and sold just like an ordinary share. Exchange Traded Notes (ETNs) An Exchange Traded Note is a contractual obligation made by an issuer to pay the holder a return which may be linked to, for example, an interest rate, the performance of one or more shares, an index, an exchange rate or a commodity Krugerrand A Krugerrand is a South African gold coin, first minted in 1967 in order to help market South African gold. The coins have legal tender status in South Africa but are not actually intended to be used as currency. Linked Units Linked Units are issued by Property Loan Stock Companies and are similar to ordinary shares in all respects except that a Linked Unit comprises of part share and part debenture (loan). Property Loan Stock Companies invest in or derive the majority of their income from immovable property. N-Ordinary Shares N-Ordinary shares are the same as ordinary shares except that they give shareholders minimal or zero voting rights. N-Ordinary shares often trade at a discount to ordinary shares. Although they are likely to cost less they pay out the same dividends as ordinary shares. Ordinary Shares Investors gain ownership in a company when buying shares, which entitles them to vote in proportion to percentage ownership. Shareholders are entitled to dividends (after preference shares dividends and bondholders’ interest is paid) as well as residual economic value should the company unwind (after bondholders and preference shareholders are paid). African Securities Exchanges Association Equity Market GParticipatory Interests Participatory Interests are issued by Collective Investment Schemes in Property (also known as Property Unit Trusts). Property Unit Trusts are similar to other types of unit trusts in that investor funds are pooled together and then used to purchase a portfolio of assets, in this case, property assets. Preference Shares Preference shares are instruments that have debt (fixed dividends) and equity (capital appreciation) characteristics. Preference shareholders have a higher claim on assets (repayment of capital if company is wound up) and earnings (dividends) than ordinary shareholders. Preference shareholders are paid fixed-rate dividends before dividends are paid to ordinary shareholders Real Estate Investment Trusts (REIT's) REIT's are tax advantaged investment vehicles that invest in and derive their income from real estate properties and mortgages. REIT's profits are distributed pre-tax and then taxed in the investors’ hands. Share Instalments REIT's are tax advantaged investment vehicles that invest in and derive their income from real estate properties and mortgages. REIT's profits are distributed pre-tax and then taxed in the investors’ hands. Warrants REIT's are tax advantaged investment vehicles that invest in and derive their income from real estate properties and mortgages. REIT's profits are distributed pre-tax and then taxed in the investors’ hands. ASEA Y E A R B O O K 119 African Securities Exchanges Association Equity Derivatives Product Description of the Product Can-Do Futures and Options Can-Do Options are derivative products that give investors the advantages of listed derivatives with the flexibility of “over the counter” contracts. Investors can negotiate the terms of an Options contract, choosing the underlying asset as well as the expiry date. Exchange-traded CFDs (eCFDs) A Contract for Difference (CFD) can be defined as an agreement (contract) to exchange the difference in value of a particular asset between the time at which a contract is opened and the time at which it is closed. An eCFD is an exchange-traded CFD that is listed and traded on the exchange and cleared by SAFCOM. Single Stock Futures Single Stock Futures are derivative instruments that give investors exposure to price movements of an underlying financial instrument (shares). A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying listed share at a fixed price on a future date. Equity Index Futures Equity Index Futures give investors exposure to price movements of an underlying Index. Participants can invest in a basket of equities without trading the individual constituent equities. A futures contract gives the investor the right to buy/ sell an underlying listed financial instrument at a fixed price on a future date. ASEA Y E A R B O O K MSCI South Africa Index 120 SAVI Squared SAVI Squared contracts are contracts that obligate the holder to buy or sell variance at predetermined variance strike price at a specified future time. Dividend Neutral Stock Future (DNSF) "Dividend Neutral Stock Futures (DNSF) are derivative instruments that give investors exposure to price movements of an underlying financial instrument (shares). A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying listed share at a fixed price on a future date. A DNSF (N-contract) is a basket of two futures contracts, constructed from a Single Stock Futures Contract (Q- Contract) and a Dividend Futures Contract (F-Contract). For instance if the client bought AGL shares, the broker would trade it in the market as an AGLN contract" African Securities Exchanges Association Equity Derivatives SAVI Top40 The SAVI Top40 (South African Volatility Index) is a forecast of equity market risk in SA. The SAVI Top40 enables investors to gauge “fear” and market sentiment relating to the local equity market. Dividend Futures Dividend Futures (DIVF) are derivative contracts used to hedge against dividend risk that accompany trade in Single Stock Futures (SSF’s). These contracts are booked in conjunction with a relevant SSF and offer a simple transaction to enable investors to protect themselves against any perceived dividend risk. Equity Options An option is a derivative instrument that gives the investor the right (not the obligation) to buy (call option) or sell (put option) shares at a fixed price on a future date. Options provide a cost-effective way of obtaining a large amount of exposure with very little risk. There is a dedicated options-maker making prices for both onscreen options trading and small volume structured trades." International Derivatives(IDX International Derivatives (IDX) give investors exposure to price movements of internationally listed shares. Investors are able to trade Single Stock Futures on internationally listed companies without the restrictions associated with exchange control regulations or the expense of setting up foreign trading accounts ASEA Y E A R B O O K 121 African Securities Exchanges Association ASEA Y E A R B O O K Commodity Derivatives 122 Product Description of the Product Quanto Futures & Options A quanto future or quanto option is a type of derivative in which the underlying traded product references a foreign underlying, but the instrument itself is settled in another currency at a fixed rate. These products are attractive to market participants who wish to gain exposure to a foreign commodity but without the corresponding exchange rate influence Diesel Hedge (referencing European Gasoil) Futures & Options A diesel futures or option contract is a type of derivative in which the underlying traded product references a foreign underlying, but the instrument itself is settled in Rand per litre with the JSE performing the necessary currency and volume conversion. This contract give investors exposure to an efficient hedge for the local diesel pump prices by tracking an international reference market. The underlying instrument is traded under license from the CME Group, namely European Gasoil and is cash settled. CBOT Soy complex Futures & Options (includes beans, meal and oil) The CBOT Soybean complex Futures & Options contract gives investors exposure to the international commodities market. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date. Grain Futures & Options Grain Futures give investors the opportunity to hedge agricultural price risk. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date. The JSE offers Futures on White Maize, Yellow Maize, Wheat, Sunflower Seeds and Soya Beans and Sweet Sorghum. Options contracts are also available. Options on Commodity Futures An option contract is a legally binding agreement that gives the option buyer the right, but not the obligation, to either buy (Call Option) or sell (Put Option) an underlying commodity at a fixed price on a future date. Buyers of options pay a non-refundable premium to obtain this right. Note Chicago Soft Red Wheat Futures & Options The Chicago Wheat contract gives investors exposure to the international commodities market. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date. Kansas City Board of Trade Hard Red Winter Wheat The Hard Red Winter Wheat contract gives investors exposure to the international milling wheat market. Now that we offer the CBOT soft red winter wheat, a local physically settled wheat contract as well as the KCBT hard red winter wheat, market participants have a choice as to which contract or contracts they would like to participate in. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date. Chicago Corn Futures & Options The Chicago Corn Futures contract gives investors exposure to the international commodities market. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date. African Securities Exchanges Association Commodity Derivatives Crude Oil Futures & Options Copper Futures Gold Futures & Options Platinum Futures & Options SAVI White Maize Silver Futures ASEA Y E A R B O O K Commodity Derivatives A futures contract is a legally binding agreement giving the investor the right to buy/sell an underlying commodity at a fixed price on a future date. This contract gives investors exposure to the international commodities market. The underlying instrument: light sweet crude oil futures contract meeting all specifications as listed and traded on NYMEX, a subsidiary of CME Group Inc. A futures contract is a legally binding agreement giving the investor the right to buy/sell an underlying commodity at a fixed price on a future date. This contract gives investors exposure to the international commodities market. The underlying instrument: copper futures contract meeting specifications as listed and traded on NYMEX through its COMEX Division, a subsidiary of CME Group Inc A futures contract is a legally binding agreement giving the investor the right to buy/sell an underlying commodity at a fixed price on a future date. This contract gives investors exposure to the international commodities market. The underlying instrument: gold futures contract meeting specifications as listed and traded on NYMEX through its COMEX Division, a subsidiary of CME Group Inc. A futures contract is a legally binding agreement giving the investor the right to buy/sell an underlying commodity at a fixed price on a future date. This contract gives investors exposure to the international commodities market. The underlying instrument: platinum futures contract meeting specifications as listed and traded on NYMEX through its COMEX Division, a subsidiary of CME Group Inc. The SAVI White Maize (South African Volatility Index) is constructing a 3 month forward looking index. In essence we want to know what the market volatility is three months from today, every day.The SAVI enables investors to gauge “fear” and market sentiment relating to the local white maize market. A futures contract is a legally binding agreement giving the investor the right to buy/sell an underlying commodity at a fixed price on a future date. This contract gives investors exposure to the international commodities market. The underlying instrument: silver futures contract meeting specifications as listed and traded on NYMEX through its COMEX Division, a subsidiary of CME Group Inc. 123 African Securities Exchanges Association Currency Derivatives Product Currency Futures Currency Options Maxi Currency Futures Contract Quanto Currency Futures and Options ASEA Y E A R B O O K RAIN (Rand Index) 124 Description of the Product A Currency Futures contract allows market participants to trade the underlying exchange rate for a period in the future. A currency futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying foreign currency at a fixed price on a future date. A Currency Options contract gives the investor the right (but not the obligation) to buy or sell a Currency Futures contract on a future date at a fixed price. The Dollar/Rand Maxi Currency Futures contract is a currency future with a larger nominal size of $100,000 per contract instead of the normal size of $1,000 per contract. The JSE has expanded its currency derivatives range to include a currency contract based on the Euro/ Dollar exchange, the world’s most actively traded currency. Quanto Futures and Options are cash-settled derivatives contracts traded on the JSE and are settled in Rands without being exposed to risks associated with a fluctuating Rand. The RAIN tracks the combined movement of the Rand against a basket of currencies consisting of South Africa’s 5 most active international trading partners. The currency index will be calculated and distributed by the JSE on a daily basis and will be listed on the Yield-X platform. African Securities Exchanges Association Interest Rate Product Bonds Currency Options Maxi Currency Futures Contract Quanto Currency Futures and Options RAIN (Rand Index Description of the Product A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. A Currency Options contract gives the investor the right (but not the obligation) to buy or sell a Currency Futures contract on a future date at a fixed price. "The Dollar/Rand Maxi Currency Futures contract is a currency future with a larger nominal size of $100,000 per contract instead of the normal size of $1,000 per contract." The JSE has expanded its currency derivatives range to include a currency contract based on the Euro/ Dollar exchange, the world’s most actively traded currency. Quanto Futures and Options are cash-settled derivatives contracts traded on the JSE and are settled in Rands without being exposed to risks associated with a fluctuating Rand. The RAIN tracks the combined movement of the Rand against a basket of currencies consisting of South Africa’s 5 most active international trading partners. The currency index will be calculated and distributed by the JSE on a daily basis and will be listed on the Yield-X platform. Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Yes Yes ASEA Y E A R B O O K 125 African Securities Exchanges Association Section Seven : Indices ASEA Y E A R B O O K Indices 126 Index Name Index Type (Price Index, Sector Index,..etc) All Share The All Share (J203-ALSI) is a free float adjusted market capitalisation-weighted Headline index.It has a variable number of constituents. All classes of ordinary shares listed on the Main Board are eligible for inclusion, with the exception of inward listed securities that are counted toward foreign portfolio allowances. Instruments require a minimum free float of 15% to be considered for inclusion, as well as meeting a minimum liquidity hurdle based on a turnover of 0.5% per month. The index captures the largest 99% of eligible companies by market capitalisation and is reviewed annually in December. Top 40 The Top 40 (J200-TOPI) is a free float adjusted market capitalisation-weighted Headline index.It has a fixed number of 40 constituents. It captures the largest 40 companies included in the All Share Index, measured by market gross market capitalisation. It is reviewed quarterly in March, June, September and December. Mid Cap The Mid Cap (J201-MIDC) is a free float adjusted market capitalisation-weighted Headline index.It has a fixed number of 60 constituents. It captures the next 60 largest companies in the All Share Index following the 40 selected for the Top 40 index, measured by gross market capitalisation. Small Cap The Small Cap (J202-SMLC) is a free float adjusted market capitalisation-weighted Headline index.It has a variable number of constituents. It represents the balance of companies from the All Share Index that are not captured in either the Top 40 index or the Mid Cap index. Shareholder Weighted Top 40 The Shareholder Weighted Top 40 (J400-DTOP) is a domestic free float adjusted market capitalisation-weighted Specialist index.It has a fixed number of 40 constituents. The index mirrors the All Share index in terms of constituent selection, but restricts individual weighting based on the proportion of each company's share register that is accounted for on the local share register. Shareholder Weighted All Share The Shareholder Weighted All Share (J403-DALS) is a domestic free float adjusted market capitalisation-weighted Specialist index.It has a variable number of constituents. The index mirrors the Top 40 index in terms of constituent selection, but restricts individual weighting based on the proportion of each company's share register that is accounted for on the local share register. Resource 10 The Resource 10 (J210-RESI) is a free float adjusted market capitalisation-weighted SA Sector index.It has a fixed number of 10 constituents. The index captures the 10 largest companies in the All Share Index that are clasisified as a Resource company under the SA Sector classification system. African Securities Exchanges Association Financial 15 The Financial 15 (J212-FINI) is a free float adjusted market capitalisation-weighted SA Sector index.It has a fixed number of 15 constituents. The index captures the 15 largest companies in the All Share Index that are clasisified as a Financial company under the SA Sector classification system. Oil & Gas Producers The Oil & Gas Producers (J055-OILP) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Oil Equipment & Services The Oil Equipment & Services (J057-OILE) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Chemicals The Chemicals (J135-CHES) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Shariah Top 40 The Shariah Top 40 (J140-STOP) is a free float adjusted market capitalisation-weighted Shariah index.It has a variable number of constituents. FTSE/JSE Capped Shariah Top 40 The FTSE/JSE Capped Shariah Top 40 (J141-SCTP) is a free float adjusted market capitalisation-weighted Shariah index.It has a variable number of constituents. Shariah All Share The Shariah All Share (J143-SALS) is a free float adjusted market capitalisation-weighted Shariah index.It has a variable number of constituents. Gold Mining The Gold Mining (J150-GLDX) is a free float adjusted market capitalisation-weighted ICB SubSector index.It has a variable number of constituents. Coal Mining The Coal Mining (J151-COAL) is a free float adjusted market capitalisation-weighted ICB SubSector index.It has a variable number of constituents. Diamond & Gemstones The Diamond & Gemstones (J152-DIAM) is a free float adjusted market capitalisation-weighted ICB SubSector index.It has a variable number of constituents. Platinum & Precious Metals The Platinum & Precious Metals (J153-PLAT) is a free float adjusted market capitalisation-weighted ICB SubSector index.It has a variable number of constituents. General Mining The General Mining (J154-METL) is a free float adjusted market capitalisation-weighted ICB SubSector index.It has a variable number of constituents. Forestry & Paper The Forestry & Paper (J173-FORE) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Industrial Metals & Mining The Industrial Metals & Mining (J175-INDM) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. ASEA The Industrial 25 (J211-INDI) is a free float adjusted market capitalisation-weighted SA Sector index.It has a fixed number of 25 constituents. The index captures the 25 largest companies in the All Share Index that are clasisified as an Industrial company under the SA Sector classification system. Y E A R B O O K Industrial 25 127 ASEA Y E A R B O O K African Securities Exchanges Association 128 Mining The Mining (J177-MINI) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Fledgling The Fledgling (J204-FLED) is a free float adjusted market capitalisation-weighted Headline index.It has a variable number of constituents. Financial and Industrial 30 The Financial and Industrial 30 (J213-FNDI) is a free float adjusted market capitalisation-weighted SA Sector index.It has a fixed number of 30 constituents. Development Capital The Development Capital (J230-DEVC) is a free float adjusted market capitalisation-weighted Secondary Market index.It has a variable number of constituents. Venture Capital The Venture Capital (J231-VENC) is a free float adjusted market capitalisation-weighted Secondary Market index.It has a variable number of constituents. Alternative Exchange The Alternative Exchange (J232-ALTI) is a free float adjusted market capitalisation-weighted Secondary Market index.It has a variable number of constituents. ALT X 15 The ALT X 15 (J233-ALTX) is a free float adjusted market capitalisation-weighted Secondary Market index.It has a fixed number of 15 constituents. Construction & Materials The Construction & Materials (J235-CONM) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. SA Financials and Industrials The SA Financials and Industrials (J250-ALEX) is a free float adjusted market capitalisation-weighted SA Sector index.It has a variable number of constituents. Preference Share The Preference Share (J251-PREF) is a free float adjusted market capitalisation-weighted Preference Share index.It has a variable number of constituents. SA Listed Property The SA Listed Property (J253-SAPY) is a free float adjusted market capitalisation-weighted Property index.It has a fixed number of 20 constituents. Capped Property The Capped Property (J254-PCAP) is a free float adjusted market capitalisation-weighted Property index.It has a fixed number of 20 constituents. Property Unit Trust The Property Unit Trust (J255-PRUT) is a free float adjusted market capitalisation-weighted Property index.It has a variable number of constituents. Property Loan Stock The Property Loan Stock (J256-PULS) is a free float adjusted market capitalisation-weighted Property index.It has a variable number of constituents. African Securities Exchanges Association SA Resources The SA Resources (J258-SARI) is a free float adjusted market capitalisation-weighted SA Sector index.It has a variable number of constituents. Dividend+ The Dividend+ (J259-DIVP) is a forward dividend yieldweighted Dividend Forecast index.It has a fixed number of 30 constituents. RAFI 40 The RAFI 40 (J260-RAFI) is a fundamentally-weighted RAFI index.It has a fixed number of 40 constituents. Rafi All Share The Rafi All Share (J263-RALS) is a fundamentally-weighted RAFI index.It has a variable number of constituents. Aerospace & Defense The Aerospace & Defense (J271-AERO) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. General Industrials The General Industrials (J272-GENI) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Electronic & Electrical Equipment The Electronic & Electrical Equipment (J273-ELEE) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Industrial Engineering The Industrial Engineering (J275-INDE) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Industrial Transportation The Industrial Transportation (J277-INDT) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Support Services The Support Services (J279-SUPS) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Capped Rafi All Share The Capped Rafi All Share (J283-RALC) is a fundamentallyweighted RAFI index.It has a variable number of constituents. Equally Weighted Top 40 The Equally Weighted Top 40 (J2EQ-ETOP) is a n equallyweighted Specialist index.It has a fixed number of 40 constituents. Capped Top 40 The Capped Top 40 (J300-CTOP) is a free float adjusted market capitalisation-weighted Specialist index.It has a fixed number of 40 constituents. Capped All Share The Capped All Share (J303-CALS) is a free float adjusted market capitalisation-weighted Specialist index.It has a variable number of constituents. Value The Value (J330-FJVI) is a fundamentally-weighted Style index.It has a variable number of constituents. ASEA The SA Industrials (J257-ASIN) is a free float adjusted market capitalisation-weighted SA Sector index.It has a variable number of constituents. Y E A R B O O K SA Industrials 129 ASEA Y E A R B O O K African Securities Exchanges Association 130 Growth The Growth (J331-FJGI) is a fundamentally-weighted Style index.It has a variable number of constituents. Automobiles & Parts The Automobiles & Parts (J335-AUTM) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Beverages The Beverages (J353-BEVR) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Food Producers The Food Producers (J357-FOOD) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Household Goods & Home Construction The Household Goods & Home Construction (J372-HOUS) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Leisure Goods The Leisure Goods (J374-LEIS) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Personal Goods The Personal Goods (J376-PERG) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Tobacco The Tobacco (J378-TABA) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Equally Weighted Resource 10 The Equally Weighted Resource 10 (J3EQ-ERES) is a n equally-weighted SA Sector index.It has a fixed number of 10 constituents. Health Care Equipment & Services The Health Care Equipment & Services (J453-HEES) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Pharmaceuticals & Biotechnology The Pharmaceuticals & Biotechnology (J457-PHAR) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Equally Weighted Financial 15 The Equally Weighted Financial 15 (J4EQ-EFIN) is a n equally-weighted SA Sector index.It has a fixed number of 15 constituents. Oil & Gas The Oil & Gas (J500-OILG) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Alternative Energy The Alternative Energy (J508-ALEN) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Basic Materials The Basic Materials (J510-BASM) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Industrials The Industrials (J520-IIND) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Consumer Goods The Consumer Goods (J530-CONG) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. African Securities Exchanges Association General Retailers The General Retailers (J537-GERE) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Health Care The Health Care (J540-HEAL) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Consumer Services The Consumer Services (J550-CONS) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Media The Media (J555-MEDI) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Telecommunication The Telecommunication (J560-TELE) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Utilities The Utilities (J570-UTLS) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Travel & Leisure The Travel & Leisure (J575-TRAV) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Financials The Financials (J580-FINA) is a free float adjusted market capitalisation-weighted SA Sector index.It has a variable number of constituents. Technology The Technology (J590-TECH) is a free float adjusted market capitalisation-weighted ICB Industry index.It has a variable number of constituents. Equally Weighted Industrial 25 The Equally Weighted Industrial 25 (J5EQ-EIND) is a n equally-weighted SA Sector index.It has a fixed number of 25 constituents. Fixed Line Telecommunications The Fixed Line Telecommunications (J653-FTEL) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Mobile Telecommunications The Mobile Telecommunications (J657-MTEL) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Electricity The Electricity (J753-ELET) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Gas, Water & Multiutilities The Gas, Water & Multiutilities (J757-GWMU) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Banks The Banks (J835-BANK) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Nonlife Insurance The Nonlife Insurance (J853-NLIF) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. ASEA The Food & Drug Retailers (J533-FOOR) is a free float adjusted market capitalisation-weighted ICB Sector index. It has a variable number of constituents. Y E A R B O O K Food & Drug Retailers 131 African Securities Exchanges Association Life Insurance The Life Insurance (J857-LIFE) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Real Estate Development & Services The Real Estate Development & Services (J863-REDS) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Real Estate Investment Trusts The Real Estate Investment Trusts (J867-REIV) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. General Financial The General Financial (J877-GENF) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Equity Investment Instruments The Equity Investment Instruments (J898-EQII) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Software & Computer Services The Software & Computer Services (J953-SCOM) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Technology Hardware & Equipment The Technology Hardware & Equipment (J957-HCOM) is a free float adjusted market capitalisation-weighted ICB Sector index.It has a variable number of constituents. Section Eight : IPOs 2013 Company N/A Date of IPO N/A Value of IPO (USD) N/A 2012 ASEA Y E A R B O O K Company N/A 132 Date of IPO N/A Value of IPO (USD) N/A African Securities Exchanges Association Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 5 Stockbrokerage Units Merrill Lynch South Africa (Pty) Ltd Deutsche Securities (Pty) Ltd UBS South Africa (Pty) Ltd ABSA Capital Securities (Pty) Ltd Citigroup Global Markets (Pty) Ltd Buy USD Sell USD Total USD 43,306,477,880 42,037,543,400 85,344,021,280 40,899,370,234 40,402,461,639 81,301,831,873 38,161,170,485 37,724,283,783 75,885,454,267 32,924,795,224 33,495,137,822 66,419,933,046 31,219,343,217 34,249,826,923 65,469,170,140 Section Nine : 2012 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 5 Stockbrokerage Units Deutsche Securities (Pty) Ltd Merrill Lynch South Africa (Pty) Ltd ABSA Capital Securities (Pty) Ltd UBS South Africa (Pty) Ltd Credit Suisse Securities Johannesburg (Pty) Limited Buy USD Sell USD Total USD 40,624,240,907 40,558,056,635 81,182,297,542 37,587,555,991 36,588,996,544 74,176,552,535 33,700,282,959 34,705,144,108 68,405,427,067 33,694,638,293 33,603,800,949 67,298,439,242 31,738,144,609 30,573,318,610 62,311,463,219 ASEA Y E A R B O O K 133 African Securities Exchanges Association Section Nine : 2011 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 5 Stockbrokerage Units Deutsche Securities (Pty) Ltd UBS South Africa (Pty) Ltd ABSA Capital Securities (Pty) Ltd Credit Suisse Securities Johannesburg (Pty) Limited Merrill Lynch South Africa (Pty) Ltd Buy Sell Total USD USD USD 42,736,269,665 42,260,722,753 84,996,992,418 35,155,293,012 35,254,128,073 70,409,421,085 30,947,730,986 32,203,474,765 63,151,205,751 28,783,464,285 29,615,172,276 58,398,636,561 29,006,988,468 27,850,086,585 56,857,075,053 Section Nine : 2010 Rankings of Top 5 Trading Participants ] Ranking Buy Sell Total USD USD USD 42,853,599,888 41,748,973,173 84,602,573,061 ASEA Y E A R B O O K Stockbrokerage Units 1 Deutsche Securities (Pty) Ltd 2 SBG Assets (Pty) Ltd 37,270,018,592 36,170,357,702 73,440,376,294 3 Citigroup Global Markets 31,360,285,675 32,222,907,137 63,583,192,812 (Pty) Ltd 4 UBS South Africa (Pty) Ltd 31,428,251,826 31,864,269,666 63,292,521,492 5 JP Morgan Equities Ltd 26,499,579,276 25,721,701,865 52,221,281,141 073 70,409,421,085 3ABSA Capital Securities (Pty) Ltd 30,947,730,986 32,203,474,765 63,151,205,751 4 Credit Suisse Securities Johannesburg (Pty) Limited 28,783,464,285 29,615,172,276 58,398,636,561 5 Merrill Lynch South Africa (Pty) Ltd 29,006,988,468 27,850,086,585 56,857,075,053 134 African Securities Exchanges Association rwanda stock exchange profile Website www.rse.rw Market Regulator Address Capital Market Authority 1st Floor, Kigali City Tower,( KCT),P.O.Box 3882, Kigali Rwanda,KN 81 ST" 09:00-12:00 Trading Session hours (local time) Time Zone Contact Person for ASEA Telephone Fax E-mail Name of Local Currency Tax Rates (dividends, interest, capital gains) Listing of Foreign Domiciled Companies Celestine Rwabukumba, CEO 250-788516021 [email protected] , [email protected] Rwandan Franc The Rwanda Stock Exchange Limited was incorporated on 7th October 2005 with the objective of carrying out stock market operations. The Stock Exchange was demutualised from the start as it was registered as a company limited by shares. The Rwanda Stock Exchange Board is comprised of 7 members distributed as follows: ASEA Commodities Exchange Y E A R B O O K 1. Government of Rwanda will have one representative 2. Members will have three representatives 3. Institutional investors will have one representative 4. Members of the public and/or professional bodies will have one representative 5. Listed companies will have one representative 135 African Securities Exchanges Association RWANDA STOCK EXCHANGE PROFILE BACKGROUND The Rwanda Stock Exchange (RSE) was incorporated on October 7th, 2005 to carry out stock market operations in Rwanda but the company was kept in shelf registration as other developments were taking place. The Rwanda Stock Exchange Limited was officially launched on January 31st, 2011 as a fully demutualized company. The ownership structure of the stock exchange consists of Members of the exchange (60%), Government of Rwanda (20%) and Institutional investors (20%). The governance structure has three levels namely, The General Assembly of shareholders, The Board of Directors and Management. The membership structure consists of three categories namely the Stock brokers, Dealers and Advisors or Sponsors. The RSE has eight full stock brokers and two Advisors or Sponsors who are actively conducting business on the Rwandan stock market. MARKET PERFORMANCE IN 2012 The market continued an upward trend after the first two IPOs from domestic companies Bralirwa and Bank of Kigali, a Brewery and a Bank, respecively joined two cross listed companies from the region: KCB Bank and Nation Media Group both from Kenya. RSE launched its first Index RSE comprised of a domestic share index Rwanda Share Index(RSI) and and an All share Index( ALSI). The two indices went up 61% and 11%, respectively. Activity also contunued its momentum on RSE despite the lack of new IPOs in 2012. The market registered a turnover of USD 28 Million compared to USD 35.3 Million in 2011 and 103.5 million shares exchanged hands in 2012 compared to 118.4 million shares in 2011. The bond market registered a turnover of USD 158,220 during the period under review from compared to USD 823.7 thousand in 2011. FUTURE OUTLOOK ASEA Y E A R B O O K The RSE is planning to continue conducting public awareness campaigns that will involve the media, the law makers, potential issuers, the intermediaries and other stakeholders. The stock exchange plans to increase listings building on privatization issues from the government por tfolio, private companies, more cross listings as well as public and private debt issues. On the number of listings, there are first of all a number of companies that government has significant shareholding and it has adopted a policy of privatizing its own companies through capital market. RSE is also planning to launch an alternative market for Small and Medium Enterprise market before end of the second quar ter of the year and plans are under way to fully automate trading and integrate it to the rest of the region through an Inter depository Transfer Mechanism (IDT) by July this year so that the market becomes more efficient and more liquid. 136 African Securities Exchanges Association Section One : Economic Indicators Main Economic Indicators Indicators Population * Real GDP (USD) (billions) at market exchange rates** Inflation rate (%)*** Net Foreign Direct Investment (USD) (Millions)** Unemployment rate (%) Interest Rate (T-Bills)-13 weeks*** Exchange rate (local currency versus US$) 2010 8,128,553 13.5 2011 8,128,553 14.62 4.58 3.42 343.000 356.700 Currency: USD 2012 2013 10,515,973 12,012,589 15.74 4,805 3.45 3.0 34.00% N/A N/A N/A N/A 540.00 560.00 580.00 600.00 ASEA Y E A R B O O K 137 African Securities Exchanges Association Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ (1) Total volume traded (1) Total number of transactions (1) Number of listed companies (Domestic)† Number of listed companies (Foreign)‡ Number of traded companies Domestic Market Capitalization (billions) end of year¤ ($) Market Capitalization as % of GDP Turnover Velocity (%) *** 2013 83,313,691.66 108,437,200 5 2 3 5 2.048 2,048,512,305 406703398560.90% Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. ¤The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts ***Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). † (1) = one way counted-Central Market and Block Market - Rights are included Investors Type Foreigners vs. Local Investors Type of Investors % of the Total Value traded $ Foreign Investors* Local Investors Total % 2011 100 8469 8,569 2012 183 9463 9,646 2013 239 10572 10,811 ASEA Y E A R B O O K *Foreign institutional investors(individuals are not considered) **Traded Value Both Cental and Bloc Markets(Excluding capital raises, public offers, Ipos..) 138 African Securities Exchanges Association Insitutions Vs. Individuals Institutions Individuals* Total % *Including foreign individuals **Traded Value Both Cental and Bloc Markets(Excluding capital raises, public offers, Ipos..) Sectors Traded Sectors traded on the Stock Number of companies included in each sector Exchange 2010 2011 2012 2013 Banks 1 1 2 2 Beverages 0 0 0 0 Food producers & Processors 0 0 0 1 Investment Companies & Other 2 Finance ASEA Y E A R B O O K 139 African Securities Exchanges Association 5 Most Active Sectors in 2013 # 1 2 3 4 5 Sectors Banks Manufacturing Electricity Real Estate Telecommunications Section Three : Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($)* Value traded on corporate bonds** 2010 N/A 2011 N/A 2012 N/A 2013 N/A N/A N/A N/A N/A N/A N/A N/A N/A *Please note that government bonds are not traded on the exchange Section Four : Trading System Trading System ( OMX NASDAQ ) ASEA Y E A R B O O K Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: 140 NO NASDAQ 2014 African Securities Exchanges Association Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange Separate BNR Company National Bank of Rwanda No CMA SMALL SYSTEMS 2012 T+ 2 T+ 3 Others Yes Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes :Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) STOCKS BONDS Description of the Product ASEA Y E A R B O O K 141 African Securities Exchanges Association Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes* Section Seven : Indices Indices Index Name Index Type (Price Index, Sector Index,..etc) N/A Closing 2012 Closing 2013 % Change N/A Section Eight : IPOs 2012 Company N/A Date of IPO N/A Value of IPO ($ million) N/A 2013 Company N/A Date of IPO N/A Value of IPO ($ million) N/A 2012 ASEA Y E A R B O O K Company N/A 142 Date of Issue N/A Face Value of Issue ($ million) N/A African Securities Exchanges Association 2013 Company N/A Date of Issue N/A Face Value of Issue ($ million) N/A Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 5 Stockbrokerage Units Baraka Capital MBEA African Alliance CDH Capital SBG Securities Purchases $ Sales $ Total $ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ASEA Y E A R B O O K 143 African Securities Exchanges Association LUSAKA stock exchange profile Website Market Regulator Address www.luse.co.zm Securities and Exchange Commiccion (SEC) Zambia 3rd Floor, Exchange Building, Central Park, Cairo Road. P.o. Box 34523 Lusaka, Zambia Trading session hours ( Local time ) 1100 to 1400 hrs Time Zone GMT +2:00 Contact Person for ASEA Mrs. Beatrice Nkanza Telephone (+260) 1228391 / 228537 / 228594 Fax (+260) 1225969 E-mail [email protected] Name of Local Currency Zambia Kwacha ASEA Y E A R B O O K Tax Rates (dividends, interest, capital gains) 144 Listing of Foreign Domiciled Companies Allowed Commodities Exchange ZAMACE (Zambia Agricultural Commodities Exchange) African Securities Exchanges Association OVERVIEW BACKGROUND The Lusaka Stock Exchange (LuSE) began operations in February 1994. Its formation was directlylinked to the economic reforms and liberalisation of the Zambian economy that began in 1991,a key feature of which was the privatisation of state-owned enterprises. A stock exchange was viewed as pivotal to the success of the privatisation programme which was also intended to facilitate foreign investment. The securities market in Zambia was formalised by the enactment of the Securities Act in December 1993. The Securities Act, and its subsidiary legislation in the form of rules, provides for the operation of a market that is fair, orderly, secure, and transparent. It provides for investor protection and the licensing of all market players. The Act also provides for the establishment of the Securities and Exchange Commission (SEC-Zambia) as the regulatory agency for the Zambian securities market. LuSE is also a self regulatory organisation (SRO) which creates rules for its members, listed companies and for trading. Structure The LuSE is incorporated as a private limited liability company owned by the broker members. To participate in the Zambian securities market, the first requirement is to incorporate as a company and thereafter to apply to the SEC for selection as a licensed dealer. Licensed dealers are qualified to provide financial advisory services to issuers and investors. To buy or sell securities on behalf of clients (secondary market trading), licensed dealers apply for admission into membership of the LuSE and thereby become formalised as stock brokers. The LuSE is therefore a broker-dealer market whereby broker members have dual capacity roles, acting as agents (brokers) as well being qualified to act as principals (dealers) for their own accounts. The Articles of Association of the LuSE had provided for a board of eight directors of which six directors were from the broker members and the other two directors separately represented the public and the listed companies respectively. However, in line with good corporate governance practices LuSE broadened its board by allowing for two more independent directors. The LuSE is licensed by the SEC-Zambia and also has membership, trading, clearing and settlement rules. The Exchange in 2005 introduced a Corporate Governance Code for listed and quoted companies. Markets LuSE operates a unified market dealing in both equity and debt. The equity market has two tiers – the listed or main board, and the quoted or second tier market. Currently, upon successful registration of equity securities with the Securities and Exchange Commission Zambia, the company is automatically quoted. Registration of securities is a legal requirement whereas listing is a matter of contract between the company and the Exchange. ASEA Y E A R B O O K 145 African Securities Exchanges Association To list, a company has to satisfy the LuSE Listing Requirements which are mostly harmonised with those obtaining in the SADC region. The Listing Requirements specify the minimum free float, number of public shareholders, profitability period, prescribed share capita and number of shares in issue. Details of these requirements and rules are available from the Exchange. To promote listing the Government has established tax incentives that only apply to listed companies and stocks. The debt or bond market deals with primary issuance and secondary tatistics Section One : Economic Indicators Main Economic Indicators Indicators Population* Real GDP (USD) (billions) at market exchange rates** Inflation rate (%)*** Net Foreign Direct Investment (USD) (Millions)**(*as % of GDP) Unemployment rate (%) Interest Rate (T-Bills)-13 weeks*** Exchange rate (local currency versus US$) 2010 2011 2012 2013 13,092,666 13,718,722 14,145,327 14,580,290 334 351.75 377.489 7.90% 7.20% 7.30% 10.680 5.770 8.000 17% 14% 13.00% 9.4 9.2 9.5 9.4 4,796.11 5,117.04 5,146.61 5,512.60 ASEA Y E A R B O O K *HCP: hcp.ma **World Bank ***The central Bank: bkam.ma 146 7.10% African Securities Exchanges Association Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ (1) Total volume traded (1) Total number of transactions (1) Number of listed companies (Domestic)† Number of listed companies (Foreign)‡ Number of traded companies Domestic Market Capitalization $ end of year ¤ Market Capitalization as % of GDP 2013 38,294,175.37 275,907,714 5,829 20 1 21 10,545,889,517.18 52.40% Turnover Velocity (%) *** †Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts *** Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). (1) = one way counted-Central Market and Block Market - Rights are included Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors* Local Investors Total % % of the Total Value traded $ 2011 2012 19% 21% 81% 79% 100% 100% 2013 36% 64% 100% *Foreign institutional investors(individuals are not considered) **Traded Value Both Cental and Bloc Markets (Excluding capital raises, public offers, IPOs..) ASEA Y E A R B O O K 147 African Securities Exchanges Association Insitutions Vs. Individuals Institutions Individuals* Total % n/a n/a n/a n/a n/a n/a n/a n/a n/a *Including foreign individuals **Traded Value Both Cental and Bloc Markets(Excluding capital raises, public offers, IPOs..) Sectors Traded Sectors traded on the Stock Exchange Shares Market Segment Banks Beverages Chemicals Construction & Building Materials Distributors Electrical & Electronic Equipment Electricity Engineering & Equipment Industrial Goods Food producers & Processors Forestry & Paper Holding Companies Insurance Investment Companies & Other Finance Leisures and Hotels ASEA Y E A R B O O K Mining Oil & Gas Pharmaceutical Industry Real Estate Software & Computer Services Telecommunications Transport Utilities 148 Number of Companies Included in Each Sector 2010 2011 2012 2013 3 2 0 1 3 2 0 1 3 2 0 1 3 2 0 1 0 0 0 0 1 1 1 1 0 1 0 0 1 0 0 1 0 0 1 1 1 1 1 1 1 1 0 1 0 1 0 0 1 1 0 1 0 1 0 0 1 1 0 1 0 1 0 0 1 1 0 1 0 1 0 0 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Banks Food producers & Processors Electricity Real Estate Telecommunications Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($)* Value traded on corporate bonds** 2010 2011 2012 668,935,849.29 1,320,059,828.84 1,659,334,491.00 594,803,753.14 744,389,482.50 1,659,244,491.00 74,132,096.15 575,670,346.34 90,000.00 2013 2,465,057,352.50 2,182,837,362.00 282,219,990.50 Section Four : Trading System Trading System ( Automated Trading System ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: No MillenniumIT 2008 ASEA Y E A R B O O K 149 African Securities Exchanges Association Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange Central Depository System Separate Company If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: T+ 2 T+ 3 Others Yes Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes ASEA Y E A R B O O K Products 150 Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Description of the Product Stocks Bonds Equity Government African Securities Exchanges Association Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Section Seven : Indices Indices Index Name LASI Index Type (Price Index, Sector Index,..etc) Price index Closing 2012 Closing 2013 % Change N/A Section Eight : IPOs Company N/A 2012 Date of IPO Value of IPO ($ million) 2013 Company N/A Date of IPO Value of IPO ($ million) ASEA Y E A R B O O K 151 African Securities Exchanges Association 2012 Company N/A Date of Issue Face Value of Issue ($ million) 2013 Company International Finance Corporation Izwe Finance Date of Issue 26 September 2013 Face Value of Issue ($ million) 2.72 15 July 2013 0.45 Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 ASEA Y E A R B O O K 2 3 4 5 152 Stockbrokerage Units Stockbrokers Zambia Pangaea African Alliance Madison Inter Market Purchases $ Sales $ Total $ 19,526,768.40 8,269,944.57 27,796,712.97 9,625,855.65 3,104,990.02 2,411,661.60 189,410.94 15,753,218.92 5,779,501.79 4,190,814.41 904,786.62 25,379,074.58 8,884,491.81 6,602,476.01 1,094,197.56 African Securities Exchanges Association MALAWI stock exchange profile Website www.mse.co.mw Market Regulator Reserve Bank Of Malawi Address Private Bag 270, Blantyre, Malawi Trading Session hours (local time) 10:30 am Time Zone GMT + 2 Contact Person for ASEA Symon Msefula Telephone 265 01 824 233 Fax 265 01 823 636 E-mail [email protected] Name of Local Currency Malawi Kwacha Tax Rates (dividends, interest, capital gains) 10 % on dividends; 30% on capital gains if shares owned for less than 12 months. Listing of Foreign Domiciled Companies Available Commodities Exchange Not available ASEA Y E A R B O O K 153 African Securities Exchanges Association MALAWI STOCK EXCHANGE 1.0REVIEW OF MARKET PERFORMANCE IN 2013 The Malawi Stock Exchange registered a positive return on index of 108.31% (97.26% in US$ terms) compared to 12.03%(-44.34% in US$ terms) registered in 2012 and an increase in both traded volume and value. The Malawi Stock Exchange transacted a total of 4,409,237,082 shares at a total consideration of MK13,331,050,694.05 (US$34,556,393.34) in 1,261 trades. In the corresponding period 2012, the market transacted a total of 667,221,045 shares at a total consideration of MK3,973,446,152.07 (US$16,183,918.70) in 1,041 trades, reflecting a 560.84% decrease in terms of share volume and a 235.50% (113.52% in US Dollar terms) increase in value. The turnover velocity as measured by the ratio of Total Value of Trades to Market Capitalisation (TVT/MCAP*) was 2.52% in 2013 compared to 1.57% recorded in 2012. The ratio of Total Value of Trades to Gross Domestic Product (TVT/GDP) recorded a liquidity level of 0.19% in the review period while in 2012 liquidity was at 0.11%. 2.0LATEST ACHIEVEMENTS Market Development • There was no activity in the primary market in 2013 but the Exchange is still optimistic of listing a bond in Q4 2014. • We held a financial literacy week under the theme “Promoting personal and household development through financial literacy” from 9th-13th December at Comesa Hall in Blantyre where the exchange conducted the first ever live offsite trading. • In order to stimulate activity on the market, the Stock Exchange held a number of sensitization workshops throughout the country on stock investment and listing opportunities on the Exchange. 3.0FUTURE OUTLOOK ASEA Y E A R B O O K Despite the general economic challenges and the uncertainty relating to the general elections on 20 May 2014, the market continued attracting foreign portfolio investors and remained buoyant in 2014 with a YTD return on index of 8.70%. Liquidity remains a challenge as investors take a hold strategy in anticipation of share price gains at the back of strong trading statements by most counters coupled with marginal floats in some counters. The Exchange will continue; • To hold sensitization workshops throughout the country on stock investment and listing opportunities on the exchange. • To encourage the listing of both corporate and government bonds on the mse. • Working with the central bank and other stakeholders in the establishment of the central share depository system in 2014. 154 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 13.80 14.40 14.8 15.3 369.0 390.6 344.0(Oct) 295.2(Oct) 7 10 34.6 23.5 N/A N/A N/A N/A N/A N/A N/A N/A 10.26 9.78 20.11 36.47 150.8010 163.7515 337.0000 433.1431 Exchange rate (local currency versus US$) Section Two : Trading Statistics Trading equity Statistics Indicators 2010 2011 2012 Total Value traded $ 12,361,586 53,346,694.93 16,183,918.70 Total volume traded 241,957,941 1,590,006,071 667,221,045 Total number of 1,541 1,425 1,041 transactions Number of listed 15 14 14 companies Number of traded 13 14 14 companies Market Capitalization 8.48 16.37 10.57 (billions) end of year Market Capitalization 36.95% 30.98% 19.95% as % of GDP** Turnover Velocity 0.9 3.15 1.57 (%) * 2013 34,556,325.81 4,409,235,132 1,261 14 14.00 16.58 28.57% 2.52 * Turnover Velocity (%)= value traded of domestic equities/domestic equities market capitalization ASEA Y E A R B O O K 155 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors 2010 1% 99% 100% Foreign Investors Local Investors Total % % of the Total Value traded $ 2011 2012 1% 14% 99% 86% 100% 100% 2013 39% 61% 100% Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Sectors Traded Sectors traded on the Stock Exchange ASEA Y E A R B O O K Domestic Board Agriculture Conglomerates Construction/Real Estate Tourism Financial Services Information Communication Technology (ICT) Insurance Investment Vehicle 156 Number of Companies Included in Each Sector 2010 2011 2012 2013 1 1 1 1 1 1 1 1 1 1 1 1 2 6 1 2 6 1 2 6 1 2 6 1 1 1 1 1 1 1 1 1 African Securities Exchanges Association 5 Most Active Sectors 2013 # 1 2 3 4 5 Sectors Information Communication Technology (ICT) Financial Services Construction/Real Estate Investment Vehicle Conglomerates Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 N/A N/A 2011 N/A N/A 2012 N/A N/A 2013 N/A N/A N/A N/A N/A N/A Section Four : Trading System Trading System ( N/A ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: No N/A 1996 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange No Separate Company Central Securities Clearing System Plc. (CSCS) No Yes N/A 1996 ASEA T+ 5 Y E A R B O O K T+ 2 T+ 3 Others Yes 157 African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Description of the Product Oridnary Shares and Preference Shares Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Yes Yes Section Seven : Indices Indices Index Name Malawi All Share Index (MASI) Domestic Share Index (DSI) ASEA Y E A R B O O K Foreign Share Index (FSI) 158 Index Type (Price Index, Sector Index,..etc) The MASI (Malawi All Share Index) is a market capitalization index and measures the perfomance of the entire market. The start date for the MASI is November 11, 1996 the base value is 100 points. The Domestic Share Index (DSI) is a market capitalisation index that tracks all domestically listed equities. The start date is November 11, 1996 just like the MASI. The Foreign Share Index (DSI) is a market capitalisation index that tracks foreign listed equities and currently tracks only Malawi register Old Mutual plc shares. The start date is July 12, 1999. African Securities Exchanges Association Closing 2012 6,015.51 Closing 2013 12,531.04 % Change 108.31 DSI 4,725.51 9,850.19 108.45 FSI 854.67 1,709.34 100.00 MASI Section Eight : IPOs Company 2012 Date of IPO Value of IPO ($ million) None 2013 Company Date of IPO Value of IPO ($ million) None 2012 Company Date of Issue N/A N/A Face Value of Issue ($ million) N/A 2013 Company Date of Issue N/A N/A Face Value of Issue ($ million) N/A Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 Stockbrokerage Units N/A Purchases $ N/A Sales $ N/A Total $ N/A ASEA Y E A R B O O K 159 African Securities Exchanges Association THE stock exchange OF Mauritius profile Website www.stockexchangeofmauritius.com Market Regulator Financial Services Commission Address 4th Floor,One Cathedral Square 16, Jules Koenig Street Port-Louis ,Mauritius Trading Session hours (local time) 9 a.m -1.30 p.m (Official and Development & Enterprise Markets) ASEA Y E A R B O O K 9.30 a.m-1.30 p.m Debt Market 160 Time Zone GMT +4h Contact Person for ASEA Sunil Benimadhu, Chief Executive Telephone 230 2129541 Fax 230 2088409 E-mail [email protected] Name of Local Currency Mauritian Rupees Tax Rates (dividends, interest, capital gain) No Tax on dividends,No tax on interests,No capital gains tax African Securities Exchanges Association History of the Stock Exchange of Mauritius Ltd (SEM) • The Stock Exchange of Mauritius Ltd (SEM) was incorporated in Mauritius on March 30, 1989 under the Stock Exchange Act 1988, as a private limited company responsible for the operation and promotion of an efficient and regulated securities market in Mauritius. Since October 6th, 2008, the SEM has become a public company, and over the years the Exchange has witnessed a significant overhaul of its operational, regulatory and technical framework to reflect the ever-changing standards of the stock market environment worldwide. SEM is today one of the leading Exchanges in Africa, a member of the World Federation of Exchanges (WFE), and designated by the United Kingdom’s Her Majesty’s Revenue and Customs (HMRC), as a “recognised Stock Exchange”. • The SEM operates two markets: the Official Market, the Development & Enterprise Market (DEM). The Official Market star ted its operations in 1989 with five listed companies and a market capitalisation of nearly USD 92 million. Currently, there are 41 companies listed on the Official Market representing a market capitalisation of nearly US$ 6 billion as at 31 January 2013. The DEM has been launched on 4 August 2006 and there are presently 47 companies listed on this market with a market capitalisation of nearly US$ 1.5 billion as at 31 January 2013. • The stock market was opened to foreign investors following the lifting of exchange control in 1994. • Foreign investors do not need approval to trade shares, unless investment is for the purpose of legal or management control of a Mauritian company or for the holding of more than 15% in a sugar company. Foreign investors benefit from numerous incentives such as revenue on sale of shares can be freely repatriated and there are no withholding tax on dividends and no tax on capital gains. • SEM’s Automated Trading System (SEMATS) was launched on 29th June 2001, putting an end to traditional trading patterns which have typified the Stock Exchange of Mauritius since its inception. Likewise, the successful implementation of the Central Depository System (CDS) since January 1997 has brought about prompt, efficient clearing and settlement of trades and at the same time reduced some of the inherent risks in the process. With the suppor t of the Bank of Mauritius which acts as clearing bank, CDS ensures delivery versus payment (DVP) on a T+3 rolling basis. The CDS also provides for a Guarantee Fund Mechanism to guarantee settlement failures of participants. • The trading of treasury bills on the market has been introduced by the SEM in December 2003, a first step of a process aimed at the setting up of an active secondary market for government instruments. Lately, SEM has been working closely with the Central Bank and Commercial Banks to set up a platform to trade medium and long term government securities on the Exchange. ASEA Y E A R B O O K • The attainment of Membership status of the World Federation of Exchanges (WFE) in November 2005 also constituted an impor tant milestone that has enabled the SEM to join the league of stock exchanges that are compliant with the stringent standards and market principles established by the WFE. This WFE membership status underpins the growing role that foreign investors are today playing in our market. In a typical year, foreign investments represent 25–35% of trading activities on our market. 161 African Securities Exchanges Association • SEM set up in 2006 the Development & Enterprise Market (DEM), which is a market designed for Small and Medium-sized Enterprises (SME’s) and newly set-up companies which possess a sound business plan and demonstrate a good growth potential. It is meant for companies wishing to avail themselves of the advantages and facilities provided by an organised and regulated market to raise capital to fund their future growth, improve liquidity in their shares, obtain an objective market valuation of their shares and enhance their overall corporate image. • Over the last two years, the SEM is going through a strategic reorientation of its activities and gradually moving away from an equity-based domestic Exchange to a multi-product internationally oriented Exchange, in the pursuit of its internationalisation strategy. This internationalisation process is aiming at moving up the value-chain of products listed/traded on the SEM platform and setting the stage for the Stock Exchange of Mauritius to gradually emerge as an attractive listing, trading and capital-raising platform offering a diversity of products and services for Global funds, Global business companies, Mining and Mineral companies, specialist-debt products, Africa-based ventures, Government securities, and become a centre of attraction for regional and global capital. • In early 2010, SEM brought major changes to its Listing Rules to align them with the Collective Investment Schemes Regulations 2008 with a view to positioning the SEM as an attractive venue for the Listing of Global and Specialised Funds. Changes to our Listing Rules to attract the listing of Global and Specialised Funds on the Exchange fits very well with the strategic shift currently underway at the SEM. The Exchange has made its Listing Rules more flexible to reflect the specific attributes and characteristics of the Specialised Funds it would like to list on the SEM. This initiative goes a long way in making the SEM a platform of choice for the listing of a wide variety of funds such as Specialised Collective Investment Schemes, Professional Collective Schemes Expor t Funds, Global Schemes, and the SEM is keen in diversifying its products offerings and gradually emerge as an international exchange. The SEM has also a commitment to aggressive timings on processing of listing applications and has adopted a listing fee structure which is very competitive. • Since 2010, SEM can trade and settle equity and debt products in Euro and GBP. SEM became in June 2011 the first Exchange in Africa to list, trade and settle equity products in USD. This innovative thrust positions SEM very favourably on the international front and contributes to the internationalisation of the Exchange. • In March 2010, the SEM was designated by the Cayman Islands Monetary Authority (CIMA), and in January 2011 , SEM has also been designated by the United Kingdom’s Her Majesty’s Revenue and Customs (HMRC), as a “recognised Stock Exchange”. • SEM introduced in April 2012 listing rules for Depositary Receipts and Mineral Companies on the Official. ASEA Y E A R B O O K • Market of the SEM as well as Requirements for the listing of junior Mineral Companies and Exploration. 162 • Companies on the Development and Enterprise Market (DEM). African Securities Exchanges Association • In September 2012, SEM was awarded for the second consecutive year the “Most Innovative African Stock Exchange of the Year Award” at the Africa investor (Ai) prestigious annual Index Series Awards held at the New York Stock Exchange (NYSE). The Award in the “Most Innovative African Stock Exchange” category was given on the basis of a number of criteria, including, amongst others, initiatives implemented by the Exchange to embrace new areas of development, programmes in place to enhance the services it provides to its key stakeholders and compliance of the Exchange’s regulatory and operational set-up with international standards. • SEM is today connected live to a top bracket of global vendors including the likes of Thompson Reuters, Interactive Data and more recently Financial Times, Factset, Bloomberg and Inet Bridge since 2010, enabling therefore both retail and institutional investors worldwide to follow our market on a real- time basis. The coverage of SEM’s data by global data vendors is a powerful marketing medium to enhance SEM’s visibility internationally and put the Exchange on the radar screen of a wider spectrum of institutional investors in par ticular which are all subscribers to global data vending terminals, thus attracting more foreign investor interest on our market. SEM is in fact one of the few Exchanges in Africa to be connected to Bloomberg and Thompson Reuters on a real-time basis. Similarly. the growing interest from international investors in recent years, has prompted well-known Index and Data Providers like Standard & Poors, Morgan Stanley, Dow Jones and FTSE to include our stock market in a number of new indexes they launched recently to track the evolution of some key frontier emerging markets. • Looking forward, SEM is committed to reinforcing its foundations and maintaining its development momentum in line with its multi-pronged internationalisation strategy of steadily moving from a domestic- equity-focused Exchange to a multi-productinternationally-focused Exchange. In the years to come, the split of listings on SEM is expected to overwhelmingly consist of international funds, international issuers, specialised debt instruments, Africa-based ventures, African-focused Exchange-traded funds and other structured products. The value of products traded and settled in USD, Euro, etc. is expected to increase over time, confirming the internationalised status of the SEM over time. As SEM also aspires to emerge as a capital raising platform for Africa-focused investments routed through the Global Business Sector, the SEM platform will growingly be used to channel investment flows from SA/Europe/Asia into Africa and from USA/Europe into Asia. The number of issuers, players and investors in our market will increase over time, increasing the breadth and depth of our market in Mauritius, and thereby also bringing a meaningful contribution to the integration of the Mauritius financial services sector within the international financial system. SEM also aims at consolidating its position with a view to fur ther contributing more broadly to the development of the Mauritian economy and of capital market activities on the national and regional fronts. ASEA Y E A R B O O K 163 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 1.29 1.29 1.29 1.26 9,427 10,832 11,150 12,001 2.90 6.50 3.90 3.60 445.05 315.41 410.00 311.00 7.5 7.9 8 7.8 3.07 4.33 3 4.3 31.34 29.98 30.9 30.53 Exchange rate (local currency versus US$) Section Two : Trading Statistics Trading equity Statistics ASEA Y E A R B O O K Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies (Domestic) Number of listed companies (Foreign) Number of traded companies Domestic Market Capitalization (billions) end of year 164 2013 468,720,173.76 2,110,898,169.00 71,668 90 1 91 8.80 Market Capitalization as % of GDP 73.34 Turnover Velocity (%) 5.33 †Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. ¤ The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts *** Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2011 2012 38.87 26.64 61.13 73.36 100% 100% 2010 21.16 78.24 100% 2013 29.36 70.64 100% Insitutions Vs. Individuals Institutions Individuals Total % 73.65 26.35 100% 78.91 21.09 100% 74.77 25.23 100% 86.67 13.33 100% Sectors Traded Sectors traded on the Stock Exchange Banks, Insurance and other Finance Commerce Industry Investments Leisure & Hotels Sugar Transport Foreign Others Information Communication & Technology Property Development Funds / GBL Companies Number of Companies Included in each Sector 2010 7 2011 7 2012 8 2013 8 11 20 25 8 8 1 1 6 - 11 21 23 8 8 2 1 6 - 9 21 27 8 5 2 1 6 1 9 21 28 8 5 2 1 6 1 1 1 ASEA Y E A R B O O K 165 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Banks, Insurance and other Finance Investments Leisure & Hotels Others Industry Based on Volume Traded Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 - 2011 934,767.00 - 2012 1,335,048.60 - 2013 6,857,159.73 - - 934767.0048 1,335,048.60 6,857,159.73 Section Four : Trading System Trading System ( SEMATS ) Is this system bought? If bought, who is the Vendor? ASEA Y E A R B O O K Year of implementing the system: 166 Yes Millenium Information Technology (MIT)-Sril Lanka 2001 African Securities Exchanges Association Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange Separate Company Yes If Separate Company please mention its Central Securities Depository name Is this system locally developed or bought? Yes If bought, who is the Vendor? Millenium Information Technology (MIT)-Sril Lanka Year of implementing the system: 2001 Clearing and Settlement is conducted in: T+ 2 T+ 3 Yes Others Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes Products Product (Stocks,Bonds, Funds,ETF's,Derivatives ..etc) Stocks Treasury bills Debentures ETFs Funds Description of the Product Ordinary shares and preference shares Government bonds issued through the Primary Dealers System Bonds issued by listed issuers Investment Funds that track different Indices, Baskets of Assets or Commodities - ETF NewGold and ETF Platinum Specialised Collective Investment Schemes, Professional Collective Schemes Export Funds, Global Scheme ASEA Y E A R B O O K 167 African Securities Exchanges Association Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Yes Section Seven : Indices Indices Index Name Index Type (Price Index, Sector Index,..etc) SEMDEX The SEMDEX is a capital-weighted price index which trades the price movements of all the shares listed on the Official Market." The Total Return Index, the SEMTRI, was launched in October 2002. Besides capturing the price movements of listed stocks, common to the already published all-share index SEMDEX, the Total Return Index, SEMTRI, incorporates the added feature of providing investors, in general, and long-term investors like pensions funds, in particular, a good measurement of total return which combines both capital gains/losses on listed stocks and gross dividends obtained on these stocks since the inception of the local stock market on 5 July 1989. Gross dividends are assumed to be re-invested in the stocks underlying the capital index, SEMDEX. The SEM-7 index was introduced in March 1998. Designed to meet international standards and provide an investible benchmark for domestic and foreign market participants, the SEM-7 comprises the seven largest eligible shares of the Official Market, measured in terms of market capitalisation, liquidity and investibility criteria. The DEMEX is a capital-weighted index which tracks the price weights of the shares listed on the DEM. The DEMTRI is a total-return index for the DEM market. SEMTRI SEM-7 DEMEX DEMTRI ASEA Y E A R B O O K SEMDEX 168 SEM-7 Closing 2012 1,732.06 Closing 2013 2,095.69 337.28 403.64 % change 21% 20% African Securities Exchanges Association Section Eight : IPOs Company Le Meritt Holdings Ltd 2012 Date of IPO 24-January-13 - Value of IPO ($ million) 24.73 24.73 2013 Company None Date of IPO - Value of IPO ($ million) - 2012 Company United Investment Ltd- Bond Omnicane Medium Term Note Total Date of issue 3.07.2012 Face Value of Issue ($ million) 12.74 17.8.2012 34.62 47.36 2013 Company Date of issue Face Value of Issue ($ million) Omnicane Ltd - 2nd Issue of Notes Mauritius Commercial Bank - Notes United Basalt Products Bond Total 21 January 13 30 22 August 13 147.40 6 November 13 18.34 195.74 ASEA Y E A R B O O K 169 African Securities Exchanges Association Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 Stockbrokerage Units N/A Ranking 1 Stockbrokerage Units N/A Purchases $ Sales $ Total $ N/A N/A N/A Purchases $ Sales $ Total $ N/A N/A N/A Members’ Contacts are available on the SEM website the SEM website ASEA Y E A R B O O K www.stockexchangeofmauritius.com 170 African Securities Exchanges Association MOZAMBIQUE stock exchange profile Website www.bvm.co.mz Market Regulator Banco de Mocambique (Central Bank) Address Av. 25th September, 5th floor, 5th block, Maputo - Mozambique Trading Session hours (local time) 08h00 - 16h00 (Official Trading Hours) Time Zone Southern Africa Contact Person for ASEA Rodrigues Ernesto Paruque; Pedro Frederico Cossa Telephone +258 21 30 88 26 (8) Fax +258 21 31 05 59 E-mail [email protected]; pedro.cossa@bvm. co.mz Name of Local Currency Metical Tax Rates (dividends, interest, capital gains) 10% tax on interest, 10% tax on dividends, 0% tax on capital gains Listing of Foreign Domiciled Companies Available Commodities Exchange Not available ASEA Y E A R B O O K 171 African Securities Exchanges Association OVERVIEW HISTORICAL BACKGROUND Mozambique Stock Exchange (BVM) is a public institution under the umbrella of the Ministry of Finance. It was inaugurated on the 14th October 1999, after being formed, by the Mozambican Government, and through the Ministry of Planning and Finance, a “Commission for the installation of a Stock Exchange in Mozambique. BVM initiated its activities with only one security “Treasury Bond 1999”. Trading has always been carried out through an electronic system. From 2000 the members began to trade through a remote trading network which provided direct access for the stockbrokers to the trading sessions through the internet. BVM is the management entity of the securities market endowed with necessary means to ensure continuity in an open and free market, and also has competence to regulate operational issues by generating conditions for the effective functioning of the market in accordance to high standards of integrity, regulation, normality and transparency. The Primary Market During 2011, the BVM registered five (5) bond issues and four (4) commercial papers issues, totalizing 9 issues. This is a very positive point compared to the 5 issues from 2010. Also in the primary market, the shareholders of the “CDM - Cervejas de Moçambique”, decided to perform a right issue of 9.681.244 shares at a price of USD4,17 each to riase USD40.370,787,48. Secondary Market The BVM registered an increase on the number of securities listed. Compared to 2010, where the BVM counted with 19 listed securities, in 2011, this number increased to a total of 25 listed securities; increasing as well the market capitalization in 77,08%, from USD352.651.010,91 in 2010 to USD 624.475.972,15 in 2011. Furthermore, during the same year, there was registered the extinction of one of the listed treasury bonds which has reached its maturity, and four (4) private bonds have gone through partial amortizations on its capital issues. Regarding to tradings, the value of transactions registered a decline of 15,94%. While in 2010 the value of transactions was USD 17.239.852,68, in 2011 it decreased to USD 14.491.448,20. Structural Reforms ASEA Y E A R B O O K The BVM Central Securities Depository (CSD) is scheduled to start its operations by June 2012. The system permits the registration of market participants who are recognized and accepted as members of the system. In 2011, the BVM has gone through the process that has been initiated in 2010, in establishing the necessary conditions for the set up of the CSD. The Millennium IT has been identified as the most appropriate to the Mozambican environment, not only because 172 African Securities Exchanges Association of the great functionalities it offers but also because it is the software most used among the SADC countries. External Relations The BVM participated regularly in diverse international forums regarding financial markets. The most relevant were the ones promoted by the CoSSE – Committee of SADC Stock Exchanges, the ASEA – African Securities Exchanges Association, the WFE - World Federation of Exchanges and the Islamic Securities Exchanges. BVM has also participated in two workshops regarding Mozambique Stock Exchange Financial Literacy and Bond Markets, promoted by CoSSE, in a partnership with the SADC Executive Secretariat and the Johannesburg Stock Exchange (JSE Limited). Regulations During 2011, the BVM upgraded the regulation Nº 3/GPCABVM/2010, of 28 May, after the approval of the regulation Nº 1/GPCABVM/2011 of the 31st March, which dictates the minimum quantities for listing at BVM. FUTURE OUTLOOK • Once operational by june 2012 the Central Securities Depository (CSD) is scheduled to start • its operations by June 2012, which will convey many benefits such as the administration and control of registered securities, members´ accounts and an internal clearing and settlement system of transactions; The BVM expects to have three (3) more companies listed in the institution; • The BVM is also working with the Central Bank to create conditions to enable the use of Treasury Bonds as collateral in the Interbank Money Market operations. At the moment only Treasury Bills are used for this purpose. The deadline for this project is June 2012. • Responsiveness Engagement • In order to respond to the needs of investors and listed companies, BVM: launched the upgrading of its technological infrastructure, with the installation of a data center according to international standards. • Developed and upgraded the Institution’s Service of Securities Holders Information software (SIAE), in order to increase its functionalities, to better serve the issuers. • With the same objective mentioned above, the BVM registered the SIAE software Industrial Property. • Upgraded the Institution’s website, in order to provide a more user-friendly interface for users (investors, listed companies and the public in general). ASEA Y E A R B O O K 173 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2010 2011 2012 2013 Population (million) Real GDP (USD) (billions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 22.06 22.95 23.52 N/A 21.81 24.19 26.25 N/A 12.4 11.2 2.6 4.2 N/A N/A N/A N/A 21.1 23.9 23.9 N/A N/A N/A N/A N/A 32.99 27.21 29.65 30.03 Exchange rate (local currency versus US$) Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies (Domestic)† Number of listed companies (Foreign)‡ Number of traded companies Domestic Market Capitalization (millions) end of year ¤ Market Capitalization as % of GDP Turnover Velocity (%) *** ASEA Y E A R B O O K NA 1.54 Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. ‡ A company is considered foreign when it is incorporated in a country other than that where the exchange is located. ¤ The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts *** Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). † 174 2013 8,424,064.13 766,275.00 NA 4 0 3 0.55 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2011 2012 Not available Not available Not available Not available 2010 Not available Not available 2013 33% 67% 100% Insitutions Vs. Individuals Type of Investors Institutions Individuals Total % % of the Total Value traded $ 2010 2011 2012 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2013 N/A N/A N/A Sectors Traded Sectors traded on the Stock Exchange Domestic Board Construction/Real Estate Consumer Goods Financial Services Healthcare Information Communication Technology (ICT) Industrial Goods Natural Resources Oil and Gas Services Number Of Companies Included In Each Sector 2010 2011 2012 2013 N/A N/A 1 1 1 4 N/A N/A 1 4 N/A N/A 1 5 N/A N/A 1 5 N/A N/A NA N/A 2 1 NA N/A 2 1 NA N/A 2 1 N/A N/A 2 1 ASEA Y E A R B O O K 175 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Consumer Goods Oil & Gas Financial Services Services N/A Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 19,421,320.89 19,365,840.44 2011 13,351,220.97 7,490,031.72 2012 74,450,571.55 70,191,331.53 2013 65,164,155.34 58,702,266.07 55,480.45 5,861,189.25 4,259,240.01 6,461,889.28 Section Four : Trading System Trading System ( BVM Trading System ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Yes N/A 1999 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange No Separate Company Banco de Mocambique (Mozambique Central Bank) Yes No N/A 1999 ASEA Y E A R B O O K T+ 2 T+ 3 Others 176 Yes Yes African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Bonds Commercial Paper Description of the Product Oridnary Shares Governmental Bonds and Corporate Bonds Short term dept security with a fixed and or floating rates and maturity up to 1 year Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading No Yes Yes Section Seven : Indices Indices Index Name N/A N/A Index Type (Price Index, Sector Index,..etc) N/A Closing 2012 N/A Closing 2013 N/A % change N/A ASEA Y E A R B O O K 177 African Securities Exchanges Association Section Eight : IPOs 2012 Company None Date of IPO Value of IPO ($ million) 2013 Company EMOSE - Empresa Moçambicana de Seguros Total Date of IPO 10/17/2013 Value of IPO ($ million) 10.46 10.46 2012 Company Commercial Paper Petromoc 2012 - I Commercial Paper Petromoc 2012 - II Ceta - Equity Commercial Paper Petromoc 2012 - III Government Bond 2012 Commercial Paper Petromoc 2012 - IV Commercial Paper - Moza Banco 2012 Commercial Paper Petromoc 2012 - V ASEA Y E A R B O O K Total 178 Date of Issue 5 April 2012 Face Value of Issue ($ million) 0.01 18 May 2012 0.10 19 June 2012 25 July 2012 0.59 0.05 22 August 2012 1.06 26 October 12 0.10 15 November 2012 0.24 28 December 2012 0.10 12.71 African Securities Exchanges Association 2013 Company Commercial Paper Petromoc 2013 - I Commercial Paper Petromoc 2013 - II Commercial Paper Petromoc 2013 - III Government Bond 1st Serie Commercial Paper Petromoc 2013 - IV Commercial Paper Petromoc 2013 - V Government Bond 2nd Serie Government Bond 3rd Serie Bonds Companhia de Mocambique 2013 Bonds Moza Banco 2013 Government Bond 4th Serie Bonds Companhia de Mocambique 2013 - 2nd Serie Government Bond 5th Serie Bonds Moza Banco 2013 - Subordinated Date of Issue 25-February-2013 Face Value of Issue ($ million) 0.10 4-April-2013 0.08 11 April 2013 0.10 30 April 2013 0.15 20 May 2013 0.12 28 June 2013 0.10 22 July 2013 0.15 19-September-2013 0.32 30 October 2013 0.07 11/15/2013 3 December 2013 0.08 0.25 12 December 2013 0.03 18 December 2013 0.18 27 December 2013 0.25 ASEA Y E A R B O O K 179 African Securities Exchanges Association nairobi sECURITIES exchange profile Website www.nse.co.ke Market Regulator Capital Markets Authority (Kenya) Address Trading Session hours (local time) Time Zone Greenwich Mean Time + 3 hours Contact Person for ASEA Telephone Fax E-mail Name of Local Currency Donald Atieno Ouma +254 20 2831000 +254 20 2224200 [email protected] Kenya Shilling Dividend withholding taxes 5% (domestic investors) 10% (foreign investors); Withholding tax on interest income 15%; Capital gains taxes suspended since 1985 Company must register in Kenya - Registrar of Companies. If already listed, it must get a letter of comfort from its listing authority. It must also get a letter of comfort from its sector regulator. Establishment of a futures exchange in advanced stage Tax Rates (dividends, interest, capital gain) Listing of Foreign Domiciled Companies ASEA Y E A R B O O K Commodities Exchange 180 The Exchange Building, 55 Westlands Road, P O Box 43633 - 00100 Nairobi Kenya Preopen: 9:00am - 9:30am; Opening Auction: 9:30 am: Continous Trading: 9:30am - 3:00 pm; Close: 3:00pm African Securities Exchanges Association The NSE continues to innovate, transform and adapt to fulfil the needs of our stakeholders and to live up to our own mission of providing a world class securities trading facility. Our long-term objective is to position Kenya as the financial services hub of the East African Region. The 2012 performance of the NSE was commendable. The NSE 20 Share Index ended 2012 at 4,133.02 points and has been on an upward trend since crossing the 4,000 mark on October 15 2012. For 2012, the NSE 20 Share Index is up 28.64%. Other indices are also performing well: Index NSE All Share FTSE NSE 15 FTSE NSE 25 Level (December 31 2012) 94.86 125.75 128.46 Performance (%) 38.72 40.11 39.64 Market capitalisation has risen 46.5% to Kshs.1.27 trillion ($14.53 billion). Capital Transactions In 2012, the Government of Kenya raised Kshs.115.4 billion ($1.32 billion) through the issuance and listing of Government of Kenya Treasury Bonds with maturities ranging from one – twenty years. Corporate debt issues amounted to Kshs.6.97 billion ($79.73 million); rights issues raised an aggregate amount of Kshs.27.06 billion ($309.54 million) and introductions increased market capitalization by Kshs.22.46 billion ($256.92 million). 2012 also saw the first inward cross listing of an East African company on the NSE since the incorporation of the East African Securities Exchanges Association (EASEA) on May 15 2009, when Umeme Holdings Ltd., cross listed on the Main Investment Market Segment of the NSE on December 14, 2012. In 2012 capital markets transactions were valued at Kshs.171.89 billion ($1.97 billion). The NSE Strategic Initiatives In light of the dynamic environment within which the NSE operates, the NSE Board of Directors on February 25, 2012 reviewed and approved the revised NSE 5 Year Corporate Plan for the years between 2010 and 2014 and included Regionalization as a key objective for the NSE during this period to its previous 5 key objectives. The revised Corporate Plan reiterates our vision and mission which are: Vision “To be a leading securities exchange in Africa, with a global reach” Mission “To provide a world class securities trading facility” The NSE Corporate Plan therefore has six objectives namely: ASEA Y E A R B O O K 181 African Securities Exchanges Association 1. 2. 3. 4. 5. 6. Conver ting from a mutual entity to a corporate entity; Growing the Existing Business; Diversifying Revenue Streams; Enhancing the value of the Brand; Building Institutional Capacity; and Regionalization. THE GROWTH ENTERPRISE MARKET SEGMENT (GEMS) On June 14 2012, the Minister for Finance gazetted the amendments to the Capital Markets (Securities) (Public Offers, Listings and Disclosures), operationalising the Growth Enterprise Market Segment (GEMS) Listing Requirements. The Capital Markets Authority approved the Nairobi Securities Exchange (Nominated Advisors) Rules, 2012 on September 6, 2012. On December 10 2012, the Board of Directors of the Exchange approved the registration of the first four (4) firms as Nominated Advisors and their Authorized Representatives to GEMS. An additional four (4) firms as Nominated Advisors and their Authorized Representatives to GEMS were registered on January 21 2013. The NOMADS will assist companies to list on GEMS and to comply with good corporate governance practices. We also believe that GEMS provides an oppor tunity for firms par ticipating in Kenya’s natural resources and mining sector to raise capital and also comply with the thirty five percent (35%) local equity component under Legal Notice No. 118. THE NSE BROKER BACK OFFICE : Following the successful launch of the Broker Back Office system on September 5, 2012, the entire process of transacting in securities has minimal manual intervention and is interfaced with the trading and settlement platforms. This reduces the risk of trading in securities listed on the Exchange, which has helped boost investor confidence and facilitate greater access by enabling internet trading. The system also improves the integrity of the Exchange trading system and facilitates greater access to our securities markets. EASEA has since adopted the technical specifications for the Kenya BBO System as the regional standard and to source for funding for the implementation of a Regional Broker Back Office System. REGIONALIZATION INITIATIVES Memorandum of Understanding with Somalia Stock Exchange ASEA Y E A R B O O K On August 8 2012, the Nairobi Securities Exchange entered into a Memorandum of Understanding with the Somalia Stock Exchange Investment Corporation (SSE) regarding the possibility of co-operating to establish a securities exchange business involving the trading, settlement, delivery and other stockbrokerage activities. The Memorandum of Understanding was the first step in the journey that would see the development and implementation of a self sustaining stock exchange in Somalia. The NSE shall have primary responsibility for the technical development of the Somalia Stock Exchange including identifying the most suitable par tners and exper tise for the operations of the Somalia Stock Exchange. 182 African Securities Exchanges Association East African Securities Exchanges Association (EASEA) The NSE also remains an active member of the East African Securities Exchange Association (EASEA), whose aim is to standardize regulations and operations within the region to make cross border investing easier for citizens of the East African Community. The members of EASEA are the Dar es Salaam Stock Exchange (DSE), the Rwanda Stock Exchange (RSE), the Uganda Securities Exchange (USE), and the Central Depository and Settlement Corporation (CDSC). The NSE is also represented in the East African Community Consultative Forum on the Capital Markets whose long term goal is to establish a regional capital market. The listing of Umeme Holdings Ltd., is a testament to the commitment of the members of EASEA to build regional capital markets and the NSE is grateful to the USE for facilitating the cross listing of Umeme Holdings Ltd. In recognition of the challenges faced by investors when transacting in cross listed securities, on February 8, 2013, the members of EASEA unanimously approved an inter-depository transfer mechanism with a commencement date of March 1, 2013. Membership of the World Federation of Exchanges (WFE) The Nairobi Securities Exchange is interested in becoming a full member of the World Federation of Exchanges. The NSE which is currently an Associate member of the WFE, has formally written to the WFE to confirm our intention to pursue full membership. In 2013, the NSE will par ticipate in the evaluation process for full membership to the WFE. The NSE believes that participating in the evaluation process provides an oppor tunity to audit operational systems, regulatory framework and corporate governance framework of the Exchange and benchmark with international best practice. ASEA Y E A R B O O K 183 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 2011 2012 2013 40 N/A N/A 29,989 37,810 40,001 19 3 7 833 N/A N/A 40 N/A N/A 17 10 9 85 86 86 Exchange rate (local currency versus US $) Note: Where (N/A) data is not available Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization (billions) end of year Market Capitalization as % of GDP ASEA Y E A R B O O K Turnover Velocity(%) * 184 2011 917,577,424 5,721,825,694 382,175 2012 1,084,933,729 5,464,227,641 342,235 2013 1,811,033,172 7,665,919,336 426,372 58 60 61 54 56 57 10 16 22 34% 42% 56% 9% 7% 8% * Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2011 2012 52 49 48 51 100% 100% 2013 47 53 100% Insitutions Vs. Individuals Institutions Individuals Total % 75 25 100% 80 20 100% 75 25 100% Sectors Traded Sectors traded on the Stock Exchange Commercial and Services Banking Automobiles & Accessories Construction & Allied Energy and Petroleum Insurance Investment Manufacturing & Allied Telecommunication & Technology Agricultural Fixed Income Market Segment Preference shares Government of Kenya Treasury Bonds Corporate Bonds Number of Companies Included in each Sector 2011 8 2012 9 2013 9 10 4 10 4 11 4 5 4 5 4 9 2 5 5 6 4 9 2 5 5 6 4 9 1 7 7 7 2 60 2 60 1 57 9 22 29 ASEA Y E A R B O O K 185 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Telecommunication & Technology Banking Manufacturing & Allied Commercial & Services Construction & Allied Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded Value traded on governmental bonds Value traded on corporate bonds 2011 5,351,069,753 5,298,705,561 2012 6,577,611,159 6,556,035,053 2013 5,261,161,194 5,208,549,582 52,364,191 21,576,106 52,611,612 Section Four : Trading System Trading System Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought MillenniumIT 2006 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? ASEA Y E A R B O O K If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: 186 The Stock Exchange Separate Company Central Depository & Settlement Corporation Kenya Limited Yes MillenniumIT 2004 T+ 2 T+ 3 Others Yes Yes African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Being developed and at advanced stage Yes Products Product (Stocks,Bonds, Funds,ETF's,Derivatives ..etc) Shares Description of the Product Bonds Government and Corporate Bonds Common and Preference Shares Section Seven : Trading Mechanis Margin Trading Intraday Trading Online Trading Yes Section Seven : Indices Indices Index Name NSE 20 Share Index NSE All Share Index (NASI) FTSE NSE Kenya 15 FTSE NSE Kenya 25 ASEA Y E A R B O O K FTSE NSE Kenyan Shilling Government Bond Index Series Index Type (Price Index, Sector Index,..etc) Price index. The index returns are based on capital gains/losses of the largest 20 securities listed on the NSE, valued by full market capitalisation. The NASI calculated using the base-weighted aggregate methodology also known as the market value weighted methodology, and encompasses all equities listed on the Nairobi Stock Exchange. This tradable index reflects the performance of the largest 15 stocks, ranked by full market capitalisation trading on the Nairobi Securities Exchange. This tradable index reflects the performance of the 25 most liquid stocks trading on the Nairobi Securities Exchange. This tradable index reflects the performance of Government Bonds trading on the Nairobi Securities Exchange. 187 African Securities Exchanges Association NSE 20 Share Index Closing 2012 4133 Closing 2013 4,927 % Change 19.21 95 137 43.84 126 129 93 173 174 92 37.30 34.88 -1.08 NSE All Share Index (NASI) FTSE NSE Kenya 15 FTSE NSE Kenya 25 FTSE NSE Bond Index ( Launched in on 3 october 2012, index value was 97 points Section Eight : IPOs Company Home Africa Ltd listed 405,255,320 shares at a price Kshs 12.00 per share via introduction I&M Holdings listed 392,000,000 shares at a price Kshs 50.00 per share via introduction 2012 Date of Introduction 15 July 2013 Value ($ million) 56 25 June 2013 228 284 Corporate Bonds - 2013 Company ASEA Y E A R B O O K Shelter Afrique Medium Term Notes FXD 1/13/05Yr FR 1/13/05Yr 188 Date of Issue Face Value of Issue ($ million) 30 September 2013 30 September 2013 49 9 58 African Securities Exchanges Association Government bonds - 2013 Company FXD 1/2013/2Yr FXD 2/2013/2Yr FXD 3/2013/2Yr FXD 4/2013/2Yr FXD 1/2012/5Yr FXD 1/2013/5Yr FXD 2/2013/5Yr FXD 3/2013/5Yr FXD 1/2012/10Yr ( re-opened) FXD 1/2013/10Yr ( re-opened) FXD1/2013/15Yr ( re-opened) FXD2/2013/15Yr FXD1/2012/20Yr ( re-opened) IFB 1/2013/12Yr Total Date of Issue 25 February 2013 25 March 2013 26 August 2013 24 December 2013 28 January 2013 29 April 2013 1 July 2013 25 November 2013 25 March 2013 Face Value of Issue ($ million) 238 232 208 294 206 234 150 174 122 26 August 2013 6 29 July 2013 74 29 April 2013 27 May 2013 182 51 30 September 2013 430 2,601 ASEA Y E A R B O O K 189 African Securities Exchanges Association Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking Equities 1 2 3 4 5 Bonds 1 2 3 4 5 Stockbrokerage Units Kestrel Capital (E.A) Renaissance Capital (K) SBG Securities African Alliance (K)-Stockbroking Dyer & Blair Investment Bank-Broker Dyer & Blair Investment Bank-Broker Kestrel Capital (E.A) Standard Investment Bank African Alliance (K)-Stockbroking SBG Securities Purchases $ Sales $ Total $ 378,373,044 347,037,591 62,385,314,546 250,994,182 211,064,620 39,737,056,957 214,337,909 190,925,814 226,916,270 190,645,560 37,947,859,371 32,815,138,160 177,018,234 185,575,349 31,183,048,078 1,375,178,264.07 1,404,631,326.45 2,779,809,590.52 1,217,319,434.58 1,204,919,173.28 2,422,238,607.86 686,359,690.18 678,807,737.81 1,365,167,427.99 530,573,212.52 516,139,204.39 1,046,712,416.91 513,988,462.90 520,984,264.70 1,034,972,727.59 ASEA Y E A R B O O K Members’ Contacts are available on the NSE website www.nse.co.ke 190 African Securities Exchanges Association namibia Stock Exchange profile Website www.nsx.com.na Market Regulator NAMFISA - Namibia Financial Institutions Supervisory Authority Address Robert Mugabe Avenue 4, Windhoek, Namibia Trading Session hours (local time) 09h00 - 17h10 in summer and 08h00 - 16h10 in winter Time Zone GMT+2 in summer & +1 in winter Contact Person for ASEA Tiaan Bazuin Telephone 264-61-227 647 Fax 264-61-245 831 E-mail [email protected] Name of Local Currency Namibia dollar Tax Rates (dividends, interest, capital gains) Listing of Foreign Domiciled Companies Commodities Exchange Non-resident shareholders Tax @ 10% of dividends The NSX will list a foreign company that is listed on another recognised stock exchange and encourages the use depository receipts N/A ASEA Y E A R B O O K 191 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 1.80 2.10 2.14 2.18 11,069 12,525 12175 Not yet available 8.8 6.0 7.6 4.4 798 798 357 Not yet available 51.0 51.2 28.6 27.4 6.68 6.65 5.42 5.52 6.64 8.14 8.4726 10.4878 Exchange rate (local currency versus US$) Section Two : Trading Statistics ASEA Y E A R B O O K Trading equity Statistics 192 Indicators 2010 Total Value traded $ 1,019,677,970 Total volume traded 214,523 Total number 3,071 of transactions Number of listed 33 companies (Domestic) Number of listed companies (Foreign) Number of traded 27 companies Market Capitalization 173.44 (billions) end of year Market Capitalization 2186.57% as % of GDP** Turnover Velocity 0.59% (%) * 2011 448,519,339 98,864,818 2,765 2012 494,505,000.00 110,936,000 2,700 2013 574,053,470.45 112,666,861 3,788 32 33 8 26 27 27 21 137.857 159.937 134.052 1100.65% 1184.00% not yet available 0.32% 0.34% not yet available * Turnover Velocity (%)= value traded of domestic equities/domestic equities market capitalization African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2010 2011 2012 N/A N/A N/A N/A N/A N/A N/A N/A N/A 2013 N/A N/A N/A Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Sectors Traded Sectors traded on the Stock Exchange Domestic Board Industrials Materials Mining Chemicals General Industrials Support Services Food Processor Beverages Food Producers General Retailers Food and Drug Retailers Banks Nonlife Insurances Life Assurance Real Estate General Finance Devx Bonds Number of companies included in each sector 2010 2011 2012 2013 1 2 1 1 1 0 1 1 2 1 4 1 3 2 4 8 20 1 2 1 1 0 1 1 1 2 1 4 1 3 2 5 9 25 1 3 1 1 0 1 1 1 2 1 4 1 3 2 4 7 29 1 2 1 1 0 1 1 1 3 1 5 1 3 2 4 7 34 ASEA Y E A R B O O K 193 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Financial Basic Materials Consumer Services Consumer Goods Industrials Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 71742837.11 46,291,914.16 2011 31303963.35 29,461,686.79 2012 57,682,679.54 55,995,179.54 25,450,922.95 1,842,276.56 1,687,500.00 2013 24,690,975.94 24,690,975.94 Section Four : Trading System Trading System ( JSE - Millenium Exchange ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: No JSE Limited 2012 updated Section Five : Clearing and Settlement Where do Clearing & Settlement take place? ASEA Y E A R B O O K If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: 194 The Stock Exchange No Separate Company STRATE on dual listed companies No No ( We use the system but don’t own it ) STRATE 2000 T+ 2 T+ 3 Others Yes NO NO T+5 African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes No No Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Equities Bonds Description of the Product An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits. Ordinary and Preference shares Secondary trades in Government, State Owned Enterprise bonds and Corporate bonds ETF Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Yes No ASEA Y E A R B O O K 195 African Securities Exchanges Association Section Seven : Indices Indices Index Name Index Type (Price Index, Sector Index,..etc) NSX Overall Index The NSX Overall Index is a price index based on the free float market capital value of all ordinary securities listed on the main board of the NSX which qualify as eligible for inclusion in the index. The NSX Local Index is a price index based on the free float market capital value of all the ordinary Namibian registered securities listed on the main board of the NSX which qualify as eligible for inclusion in the index. NSX Local Index Closing 2012 Closing 2013 % Change NSX Overall Index 983.79 996.73 1.32 NSX Local Index 273.56 331.72 21.26 Section Eight : IPOs 2012 Company None Date of IPO Value of IPO ($ million) 2013 Company Bank Windhoek Date of IPO Value of IPO ($ million) 6/1/2013 34440 2012 Company ASEA Y E A R B O O K None 196 Date of Issue Face Value of issue ($ million) African Securities Exchanges Association 2013 Company Date of Issue Face Value of Issue ($ million) None Section Nine : 2012 Rankings of Top 5 Trading Participants Ranking 1 Stockbrokerage Units N/A Purchases $ Sales $ Total $ ASEA Y E A R B O O K 197 African Securities Exchanges Association THE nIGERIAN stock exchange profile Website Market Regulator ASEA Y E A R B O O K Address 198 www.nse.com.ng Securities and Exchange Commission (SEC), Nigeria Stock Exchange House, 2/4 Customs Street, P.O.Box 2457, Marina, Lagos, NIGERIA Trading Session hours (local time) 09h30 - 14h30 (Official Trading Hours) Time Zone West Central Africa Contact Person for ASEA N. Yvonne Emordi Telephone +234 (0)1 463 8333 or +234 (0)1 463 8334 Fax - E-mail [email protected] ; contactcentre@nse. com.ng Name of Local Currency Naira Tax Rates (dividends, interest, capital gains) 10% tax on interest, 10% tax on dividends, 0% tax on capital gains Listing of Foreign Domiciled Companies Available Commodities Exchange Not available African Securities Exchanges Association 1960 The Lagos Stock Exchange is incorporated as a company Limited by Guarantee. Trading begins one year later. 1977 The Lagos Stock Exchange is rebranded The Nigerian Stock Exchange. 1984 The Nigerian Stock Exchange launches the All Share Index, a value-weighted market capitalization index with a base value of 100. 1985 The Second-Tier Securities Market (SSM) is launched to accommodate small and medium sized companies interested raise capital from the market. 1986 The Exchange moves to its new headquarters at 2/4 Customs Street, Lagos. 1987 The Exchange connects to the Reuters Electronic Contributor System for greater international exposure. 1992 The All Share Index hits 1,000 points. 1993 The Nigerian Capital Market is deregulated improving the competitiveness of the market and making it more investor-friendly. 1995 The Exchange Control Act of 1962 and the Nigerian Enterprises Promotion Decree of 1989 are abolished, removing constraints on foreign participation; and the Nigerian Investment Promotion Commission Decree No.16 and Foreign Exchange (Monitoring & Miscellaneous) Provisions Decree No.17 are promulgated to encourage international participation. The same year, the Board of Trustees of the Investors Protection Fund is inaugurated. 1996 A 5% band limit in daily fluctuation of any equity is imposed, and the Exchange moves from T+14 clearing and settlement to T+5. 162 1997 The Central Securities Clearing System Limited (CSCS), a subsidiary of the NSE, commences operations, providing automated clearing, settlement and delivery services, as well as custodian services. 1998 ASEA Y E A R B O O K Trading Rights commences on the exchange. The NSE is elected President of the African Securities Exchanges Association (ASEA); and the Exchange signs an MOU with the Ghana Stock Exchange (GSE) to encourage cross border listings. 199 African Securities Exchanges Association 1999 The Exchange moves from the Open Outcry system to the NASDAQ OMX Horizon automated trading system (ATS); the Investments & Securities Decree No. 45 of 1999 is promulgated to promote a more efficient and virile capital market; and the NSE signs an MOU with the Johannesburg Securities Exchange (JSE Ltd.) to encourage cross-border listings. The same year,the first cross-listed company is admitted to the Main Board. 2000 Ndi Okereke-Onyiuke, OON resumes as the first female Director General of the Exchange; the NSE signs an MOU with the Nairobi Securities Exchange(NSE) to encourage cross-border listings; and the Exchange moves to T+3 clearing and settlement. The same year, the Trade Guarantee Fund is launched and funded to guarantee the settlement of bona fide market transactions; the National Annual Essay competition is kicked off at universities all around Nigeria. The NSE signs MOUs with the International Stock Exchange of London and the Egyptian Exchange (EGX); and the All Share Index crosses the 10,000 mark. 2002 The Exchange launches its first Web site. 2003 The Exchange extends trading hours – 10:00 to 12:00. 2004 The Exchange admits its first Federal Government Bond to the market. 2005 The NSE and CSCS launch a trade alert notification service, and a digital storage and retrieval programme for investors. 2007 The Exchange celebrates the opening of its modern electronic trading floor, extends trading hours by one hour – 09:30 to 12:30, and celebrates a record N1 trillion in the value of trades transacted upon. 2009 ASEA Y E A R B O O K The Exchange begins publishing daily values for the NSE 30 index and for four sector indices – Banking, Insurance, Food & Beverages and Oil & Gas. 200 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) Exchange rate (local currency versus US$) 2010 2011 2012 2013 155 160 174 174 216,803 247,100 262,610 N/A 13.8 10.9 12.0 8.0 6,200 6,099 7,101 NA 21.1 23.9 23.9 NA 6.85 11.94 11.77 10.97 148.31 151.82 155.44 159.79 ASEA Y E A R B O O K 201 African Securities Exchanges Association Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies (Domestic)† Number of listed companies (Foreign)‡ Number of traded companies Domestic Market Capitalization (billions) end of year ¤ ($) Market Capitalization as % of GDP 2013 6,529,285,578.24 106,539,868,178.00 1,380,789.00 188 2 176.00 80.69 NA Turnover Velocity (%) *** 7.89 Number of companies which have shares listed on an exchange at the end of the period, split into domestic and foreign, excluding investment funds and unit trusts. A company is considered domestic when it is incorporated in the same country as where the exchange is located. A company is considered foreign when it is incorporated in a country other than that where the exchange is located. ‡ A company is considered foreign when it is incorporated in a country other than that where the exchange is located. ¤ The exchange’s Domestic Market Capitalization should be reported, this excludes foreign companies dual listing on the exchange and collective investment funds ie. REITs, unit trusts *** Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). † Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % 2010 49% 51% 100% % of the Total Value traded $ 2011 2012 81% 56% 19% 44% 100% 100% 2013 51% 49% 100% ASEA Y E A R B O O K Insitutions Vs. Individuals 202 Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A African Securities Exchanges Association Sectors Traded Sectors traded on the Stock Exchange Number of Companies Included in each Sector 2010 2011 2012 2013 6 6 11 5 6 11 5 6 9 5 6 8 33 62 11 10 30 56 11 10 29 56 11 10 29 56 11 11 30 9 15 24 26 7 14 22 27 6 14 21 24 5 14 21 Domestic Board Agriculture Conglomerates Construction/Real Estate Consumer Goods Financial Services Healthcare Information Communication Technology (ICT) Industrial Goods Natural Resources Oil and Gas Services * Specify the sector and the number of companies in each 5 Most Active Sectors # 1 2 3 4 5 6 Sectors Financial Services Conglomerates Consumer Goods Oil & Gas ICT Telecommunications Section Three: Bonds Statistics Bonds Statistics 2010 95,332.75 95,332.75 2011 N/A N/A 2012 53,006.30 46,274.37 2013 1,270,871.65 1,270,871.65 0.00 N/A 6,731.92 N/A ASEA Y E A R B O O K Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 203 African Securities Exchanges Association Section Four : Trading System Trading System ( X-GEN ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought NASDAQ OMX 2013 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange No Separate Company Yes Central Securities Clearing System Plc. (CSCS) No Yes NASDAQ OMX 2013 T+ 2 T+ 3 Others Yes Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange ASEA Y E A R B O O K Equity Market Cash Market Derivative Market Bond Market 204 Yes Yes African Securities Exchanges Association Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Bonds ETFs Description of the Product Oridnary Shares and Preference Shares Federal Bonds, State and Local (Municipal) Bonds, and Corporate Bonds Investment Funds that track different Indices, Baskets of Assets or Commodities Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Yes Yes ASEA Y E A R B O O K 205 African Securities Exchanges Association Section Seven : Indices ASEA Y E A R B O O K Indices 206 Index Name Index Type (Price Index, Sector Index,..etc) NSE All Share Index (ASI) The NSE ASI (All Share Index) is a value-weighted market capitalization index. The start date for the NSE ASI is January 3, 1984; the base value is 100 points. NSE 30 The NSE 30 Index comprises the top 30 equities in terms of market capitalization and liquidity. Only fully-paid common shares, denominated in the Nigerian currency (naira) are included in the index. The number of equities in the index is fixed at 30. The start date for the NSE 30 Index is January 1, 2007; the base value is 1,000 points. The index is rebalanced on a semi-annual basis, on the first business day in January and July. NSE 50 The NSE 50 Index tracks the top 50 companies in terms of market capitalization and liquidity. It is a price index and is weighted by adjusted market capitalization—the number of a company’s listed shares, multiplied by the closing price of that company, multiplied by a capping factor. Only fully paid-up common shares are included in the index. NSE Consumer Goods Index (formerly Food/ Beverage Index) The NSE Consumer Goods Index is one-of-four indices designed to provide a benchmark to capture the performance of a specific sector. The number of stocks in this index is fixed at 15. The start date for the Consumer Index is July 1, 2008; the base value is 1,000 points. The index is rebalanced on a semi-annual basis, on the first business day in January and July. NSE Banking Index The NSE Banking Index is one-of-four indices designed to provide a benchmark to capture the performance of a specific sector. The number of stocks fixed at 10. The start date for the Banking Index is July 1, 2008; the base value is 1,000 points. The index is rebalanced on a semianunual basis, on the first business day in January and July. NSE ASeM Index The NSE ASeM Index tracks price movements of all equities listed on the Alternative Securities Market. It is a value-based index. NSE Industrial Index This index is designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology. NSE Oil & Gas Index The NSE Oil & Gas Index is one-of-four indices designed to provide a benchmark to capture the performance of a specific sector. The number of stocks fixed at 7. The start date for the Oil & Gas Index is July 1, 2008; the base value is 1,000 points. The index is rebalanced on a semi-anunual basis, on the first business day in January and July. NSE Insurance Index The NSE Insurance Index is one-of-four indices designed to provide a benchmark to capture the performance of a specific sector. The number of stocks fixed at 15. The eligible equity universe is the top 15 most capitalized and liquid companies in the Insurance sector. The start date for the NSE Insurance Index is July 1, 2008; the base value is 1,000 points. The index is rebalanced on a semi-anunual basis, on the first business day in January and July. African Securities Exchanges Association Section Eight : IPOs 2012 Company None Date of IPO Value of IPO ($ million) 2013 Company Date of IPO Value of IPO ($ million) None Company UBA PLC 2nd Tranche 16.39% FGN January 2022 Tower Funding Plc Tranche A Tower Funding Plc Tranche B Austin Laz and Co. Plc Lafarge Cement Wapco Nigeria Plc Ekiti State Government Bond Chellarams Plc Benue State Government Bond 15.10% FGN April 2017 Fortis Microfinance Bank Plc 16.00% FGN JUN 2019 Date of issue Face Value of Issue ($ million) 5-January-2012 25-January-2012 9-February-2012 9-February-2012 29-February-2012 5-March-2012 225.17 225.17 23.40 6.40 2.16 76.40 13-March-2012 20-March-2012 26-March-2012 25-April-2012 20-June-2012 27-June-2012 128.66 3.40 83.63 225.17 8.15 193.00 ASEA Y E A R B O O K 207 African Securities Exchanges Association Company Date of issue International Finance Corporation (IFC) Bond Osun State Government Bond Osun State Government Bond Gombe State Government Lagos State Government Bond Lagos State Government Bond C & I Leasing Plc Face Value of issue ($ million) 23-February-2012 75.10 28-May-2013 20-July-2012 3-August-2012 7-August-2012 4-September-2013 71.34 187.75 125.16 500.66 547.59 21-September-2012 5.88 Section Nine : 2012 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 ASEA Y E A R B O O K 5 208 Stockbrokerage Units Stanbic IBTC Stockbrokers Limited Rencap Securities (Nig) Limited CSL Stockbrokers Limited FBN Securities Limited BGL Securities Limited Purchases Sales Total $ $ N/A N/A 2,486,195,131.06 N/A N/A 2,123,414,213.94 N/A N/A 877,062,124.80 N/A N/A 507,503,627.62 N/A N/A 477,108,328.66 $ African Securities Exchanges Association UGANDA SECURITIES exchange profile Website www.use.or.ug Market Regulator Capital Markets Authority (Uganda) Address 4th Floor, Prism Building, Kampala Road, P O Box 23552 Kampala UGANDA Trading Session hours (local time) 10am - 12 noon Time Zone Greenwich Mean Time + 3 hours Contact Person for ASEA Innocent Dankaine / Jonathan Bushara Telephone +256 41 7705550 Fax +256 41 4342841 E-mail [email protected] / [email protected] / [email protected] Name of Local Currency Uganda Shilling Tax Rates (dividends, interest, capital gain) Listing of Foreign Domiciled Companies ASEA N/A Y E A R B O O K Commodities Exchange • Withholding tax on Dividends; 10% for resident investors 15% for non-resident investors • Withholding tax on interest (general) 15% for both residents & non-residents • Withholding tax on interest paid on government securities 20% for both residents & non-residents • No Capital gains taxes Company must register in Uganda - Registrar of Companies. If already listed, it must get a letter of comfort from its listing authority. It must also get a letter of comfort from its sector regulator. 209 African Securities Exchanges Association OVERVIEW COUNTRY ANNUAL REVIEW - 2012 1.ECONOMIC & FINANCIAL DEVELOPMENTS The Bank of Uganda (BoU) started the year to a slow ease to tighten monetary policy that had been adopted for most of 2011.During the year, the BoU reduced the Central Bank Rate (CBR) from 21 percent in March to 20 percent in June 2012 and eventually to 12 percent in December 2012. This was motivated by the decline in inflation and the need to boost economic activity. The lowering of the CBR thus reflected efforts by the BoU to encourage commercial banks to reduce their lending rates in order to increase the growth of their lending to the private sector which has remained weak since September 2011 due to high lending rates. In response, the commercial banks reduced their lending rates marginally from 27.6 percent in March to 27 percent in June and 23.2 percent in December 2012. Inflation – Domestic and Global Developments Inflationary pressures continued to ease throughout the year under review and eventually hit the single digit mark at the end of the year. Headline inflation fell consistently from 21.2 percent in March 2012 to 18 percent in June and 5.5 percent in December 2012, while core inflation also declined from 23.6 percent to 4.6 percent in the same period. Food inflation continued the downward trend that began in March, and ended at 7.3 percent in December reflecting improved supplies with the onset of the rainy season. The most spectacular decline, however, was inflation in Electricity, Fuel and Utilities (EFU) in which the rate fell by 8.3 percentage points to end at 12.9 percent in December 2012. This mainly reflected a decline in oil prices that had risen early in the first quarter but have been steadily falling since April to an 18-month low in June. Foreign Exchange Rates – Shilling steady ASEA Y E A R B O O K The shilling remained volatile against the US dollar to trade at UGX 2,484.36 in June 2012 from UGX 2,485.02 in March 2012. By December 2012, the shilling had settled at UGX 2,688.17. This marked a reversal in the trend as the shilling, on an average basis had steadily appreciated since October 2011. This points to a recovery in capital inflows and a reduction in demand for foreign exchange from the major sectors (energy and telecommunications) that made it possible to meet the available supply. 210 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) of total labour force Interest Rate (T-Bills) 34.50 34.51 34.76 18,280.00 16,810.00 17,325.00 18.80 14.00 6.30 648.00 796.00 823.00 N/A N/A N/A 22.34 9.71 9.364 2336 2661 2530 Exchange rate (local currency versus US$) Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization (billions) end of year Market Capitalization as % of GDP Turnover Velocity(%) * 2011 17,459,293.07 168,299,763 4,748 2012 9,936,234.06 345,054,996 3,668 2013 96,887,799.40 2,353,987,917 5,205 14 15 16 7 8 12 4.12 5.88 8.26 22.54% 34.98% 47.68% 4,237,692.49 1,689,835.72 11,729,757.80 ASEA Y E A R B O O K * Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). 211 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % % of the Total Value traded $ 2012 N/A N/A N/A 2011 N/A N/A N/A 2013 N/A N/A N/A Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A Please note that due to Uganda’s open capital account poilicy, there is no real aggregate of foreign vs. local tradng information. Sectors Traded Sectors traded on the Stock Exchange ASEA Y E A R B O O K MIMS Board Banking Commercial & Services Finance & Investment Insurance Construction & Allied Manufacturing & Allied Information Technology Energy Tourism Health Mining & Minerals Retail &wholesaling Corporate Bonds 212 Number of Companies Included in each Sector 2011 2012 2013 5 3 1 2 1 2 0 0 0 0 0 0 5 5 3 1 2 1 2 0 1 0 0 0 0 5 5 3 1 2 1 2 0 1 0 0 0 1 5 African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 6 Sectors Banking, Finance and Investment Industrial, Manufacturing and Allied Commercial and Services Energy Retail & Wholesaling Telecommunications Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2011 2012 2013 N/A N/A N/A N/A N/A 200,740,000 Section Four : Trading System Trading System Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: N/A N/A N/A Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange Yes Separate Company If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: N/A No Yes Millennium IT 2010 T+5 ASEA Y E A R B O O K T+ 2 T+ 3 Others 213 African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes No Yes Products Product (Stocks,Bonds, Funds,ETF's, Derivatives ..etc) Stocks Bonds ETF Derivatives Description of the Product Common Shares Government and Corporate Bonds Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading No No No Section Seven : Indices Indices Index Name USE ALL Share Index (ALSI) ASEA Y E A R B O O K USE Local Company Index (LCI) 214 USE ALSI USE LCI Index Type (Price Index, Sector Index,..etc) The ALSI calculated using the base-weighted aggregate methodology also known as the market value weighted methodology, and encompasses all equities listed on the Uganda Securities Exchange The LCI calculated using market value weighted methodology, and encompasses only local equities listed on the Uganda Securities Exchange Closing 2012 1,203.79 Closing 2013 1,522.46 % Change 26.5% 193.49 265.11 3702% African Securities Exchanges Association Section Eight : IPOs 2011 Company None Date of IPO Value of IPO ($) 2012 Company Date of IPO UMEME Limited Value of IPO ($) 30-Nov-12 167,860,372.56 2013 Company Date of IPO Value of IPO ($) None 2011 Company Date of Issue Government of Uganda Treasury Bond-2 years Government of Uganda Treasury Bond-3 years Government of Uganda Treasury Bond-5 years Government of Uganda Treasury Bond-10 years Face Value of Issue ($) 124,143,835.62 415,239,726.03 177,654,109.59 66,352,739.73 Total 783,390,411 2012 Company Face Value of Issue ($) 338,218,714.77 400,225,479.14 20,668,921.46 236,753,100.34 114,618,564.45 1,110,484,780 ASEA Y E A R B O O K Government of Uganda Treasury Bond-2 years Government of Uganda Treasury Bond-3 years Government of Uganda Treasury Bond-4 years Government of Uganda Treasury Bond-5 years Government of Uganda Treasury Bond-10 years Total Date of Issue 215 African Securities Exchanges Association Company Date of Issue Government of Uganda Treasury Bond-2 years Government of Uganda Treasury Bond-3 years Government of Uganda Treasury Bond-4 years Government of Uganda Treasury Bond-5 years Government of Uganda Treasury Bond-10 years Government of Uganda Treasury Bond-15 years Total Face Value of Issue ($ million) 256,916,996.05 454,545,454.55 21,739,130.43 390,830,514.84 167,984,189.72 31,620,553.36 1,323,636,839 Section Nine : 2013 Rankings of Top 5 Trading Participants turnover 2013 ASEA Y E A R B O O K Ranking Equities 1 2 3 4 5 Bonds 1 216 Stockbrokerage Units African Alliance Uganda SBG Securities Dyer & Blair Crane Financial Services Crested Stocks & Securities African Alliance Uganda Purchases $ Sales $ Total $ 83,402,557 80,456,107 11,087,774 8,721,998 8,578,913 African Securities Exchanges Association ZIMBABWE stock exchange profile Website Market Regulator Address www.zimbabwe-stock-exchange.com Securities and Exchange Commission of Zimbabwe (SECZ) 4th Floor, 101 Building, Corner Third Street/ Kwame Nkrumah Avenue, HARARE Trading Session hours (local time) 1000 hrs-1130 hrs Time Zone Greenwich Mean Time + 2 hours Contact Person for ASEA Martin Matanda Telephone +263 4 701096/7, 252779-80 Fax +263 4 762348 E-mail [email protected] Name of Local Currency United States Dollar Dividend withholding taxes 10% (domestic investors) 10% (foreign investors); Withholding Tax Rates (dividends, interest, capital gains) tax on interest income 15%; Capital gains taxes 1% on the sale side Listing of Foreign Domiciled Companies Available Commodities Exchange Not available ASEA Y E A R B O O K 217 African Securities Exchanges Association ZIMBABWE STOCK EXCHANGE EXCHANGE BACKGROUND Brief History The first stock exchange in Zimbabwe opened its doors shortly after the arrival of the Pioneer Column in Bulawayo 1896. It was however only operative for about 6 years. Other stock exchanges were established in Gwelo (Gweru) and Umtali (Mutare).The latter, also founded in 1896, thrived on the success of local mining, but with the realization that deposits in the area were not extensive, activity declined and it closed in 1924. After World War II a new exchange was founded in Bulawayo and dealing started in 1946. A second floor was opened in Salisbury (Harare) in December 1951 and trading between the two centres was by telephone. They continued operating until it was decided that legislation should be enacted to govern the rights and obligations of, both members of the Exchange and the general investing public. The Zimbabwe Stock Exchange Act reached the statute book in January 1974. The members of the Exchange continued to trade as before, but it become necessary for legal reasons to bring into being a new Exchange coincidental with the passing of the legislation. The present Exchange therefore dates back from the passing of the Act. In 2004, The Securities and Exchange Act was promulgated to repeal the ZSE Act and became operational in September 2008. Zimbabwe has a fully developed Capital market with an active and equally developed institutional base. As a result of a long tradition of investing on the Market, an entire industry has been created. Zimbabwe has a pension fund industry, insurance industry, and local asset management industry supported by a number of registered stockbroking firms. Change in Functional Currency in 2009 In November 2008, the Zimbabwe Stock Exchange temporarily stopped trading following intervention by The Reserve Bank of Zimbabwe and reopened on 19 February 2009. The Zimbabwe economy dollarized in 2009 and the Zimbabwe Stock Exchange similarly adopted the US dollar as its primary trading currency. Indices were rebased to 100 for both the Industrial and Mining indices. Transaction costs on the ZSE ASEA Y E A R B O O K Transaction costs for trading on the ZSE are determined from time to time by the Ministry of Finance. The fees are structured as follows: 218 Brokers Commission Securities Commission Levy ZSE Levy VAT Capital Gains Withholding Tax Stamp Duty Investor Protection Levy Basic charge Buying 1.00% 0.18% 0.10% 0.15% 0.25% 0.05% $2 Selling 1.00% 0.18% 0.10% 0.15% 1.00% 0.05% $2 African Securities Exchanges Association LATEST ACHIEVEMENTS Proposed SME Bourse for the ZSE The ZSE aims to establish a regulated platform on which SMEs can be listed. In 2013, a Working Party comprising the Ministries of Small to Medium Enterprises and Co-operatives; Ministry of Finance and Economic Development; stockbrokers; corporate financiers; an accounting firm; the Zimbabwe National Chamber of Commerce and ZSE was put together. The Working Party also formed an informal consultative group including all stakeholders, for the purpose of engagement over the course of the project. Another key deliverable in the year was the project’s blueprint. A successful first SME Workshop was held in the year, resulting in the first draft of the Rules for the board. The processes involved in finalising the Rules will include ZSE Board’s approval with the Securities and Exchange Commission of Zimbabwe (SECZ) giving the final approval. SECZ has thus been kept apprised of the project through various interactions. The ZSE started working more closely with Corporate Financiers and Advisors in its Market Development, and also held discussions with The World Bank and the African Development Bank on the project. A group of potential issuers was identified and has been engaged. Work on the project will also involve looking for a new class of underwriters who will act as market makers. Additionally, an active process is underway to get a suitable name for the bourse. Central Securities Depository (CSD) Chengetedzai Depository Company (CDC) was mandated by SECZ to set up the CSD. CDC is a company independent from the ZSE which however is a shareholder in the company. CDC acquired the DepoX System from CMA of Sweden in January 2013 and has been working to operationalize the depository. It is expected that the CSD will go live in 2014. Automated Trading System On 1 August 2013 the ZSE contracted a Consultant (Central Depository and Settlement Company of Mauritius) to lead the automation project. A representative of CDSM, Manoven Sadayen, visited the ZSE in September 2013 as progress on the project started gathering momentum. Among activities lined up during his visit were consultations with key ZSE stakeholders including members and other key market players. A stakeholders’ meeting was held on the 20th of September 2013, in which Mr Sadayen introduced the project. Following the request for an expression of Interest in September 2013, eleven vendors responded. Only four however submitted full responses to the request for Proposals on the supply and installation of an ATS. ASEA Y E A R B O O K The initial valuation of all bids submitted narrowed down the competing vendors to a short list of two – CIS/ CMA Small systems and InfoTech Middle East. During the last week of November the shortlisted two vendors were given the opportunity to give oral presentations and demos to support their bids. The CSI /CMA Small Systems consortium was however unable to participate in the demo exercises due to other circumstances beyond their control. Additional due diligence measures were taken during the month of December and as a result of the report outcome of these efforts the Board of the Zimbabwe Stock Exchange approved the engagement of InfoTech Middle East FZ-LLC. 219 African Securities Exchanges Association Following the conclusion of successful contract negotiations on 19 March 2014 with InfoTech Middle East, the final live date has been targeted for the third quarter of 2014. Revision of Listings Rules A proposal for input on the current Listings Rules, which were last reviewed in February 2002, was sent by the ZSE in June 2013 to a targeted group of stakeholders. The comments received thereon, were considered in the preparation of the First Draft of the revised Listings Rules. The First Draft was issued to all stakeholders for consideration in March 2014. The project is expected to be completed during the course of 2014. Awareness Initiatives In December 2013, the ZSE introduced its monthly e-newsletter, ATS Watch. The main objectives of the newsletter include the following. • Keeping ZSE stakeholders informed on the Auto-mated Trading System (‘ATS’) and other projects’ progress; • giving an insight into issues surrounding automated trading; • preparing stakeholders for a fundamental change in the market mechanism; and • promoting dialogue be-tween the ZSE and its key stakeholders. ZSE Data Portal ASEA Y E A R B O O K In March 2013, the ZSE launched an improved website as part of an effort to address the information gap regarding our market. By using comprehensive data on our listed companies, world-class functionality, social media and continuously engaging our investment communities individually online, we hope to go a long way in providing information about investing on the ZSE. Visit the ZSE on www.zimbabwe-stock-exchange.com 220 African Securities Exchanges Association FUTURE OUTLOOK Automation The ZSE expects to have an automated trading system in place this year. The experiences of markets that have automated before us show that automation makes the market more attractive, and therefore volumes will grow. We trust that ZSE will be no different and that the modernisation effort will result in more business for our Members. If this is achieved we expect jobs in the industry to be preserved and the revenue collected by our industry for the state should also improve. Improving Corporate Governance • New listing requirements As we prepare to adopt the new listing rules, due this year, we anticipate that the wider investment options and the greater transparency they foster will significantly deepen Zimbabwe’s Capital markets. • Human Capital and talent management This will facilitate the separation of the regulatory function from normal commercial operations. Automation will entail strengthening of the ICT function to meet the new challenges. • Improving Quality of Earnings Our objective is to broaden our product offering to include bonds, EFTs and other types of tradable instruments. Retention of Listed Companies Our drive is to retain quality listed companies through • Improved communication with company ceos and executives based on one-on-one meetings at their premises, • Company tours to enhance our understanding of stakeholder operations and unique circumstance, and • Attending all agms as observers Participation in regional initiatives with other exchanges As ZSE we have taken it upon ourselves to align our strategic plan to CoSSE and ASEA’s Strategic Plans and in this way achieve goal congruence. Investor awareness initiatives ASEA Y E A R B O O K Developing the domestic investor base is of strategic importance. To achieve this goal it naturally entails investing in investor education. However, we believe we can leverage on the impressive literacy level of the Zimbabwean populace (Zimbabwe has had the highest literacy level in Africa for the past two years), to increase financial literacy and hopefully capital markets knowledge. 221 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2010 2011 2012 2013 Estimates Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions)* Unemployment rate (%) Interest Rate (T-Bills) 12.78 12.92 13.06 13.20 9,085 10,167 11,241 11,626 3.0 3.5 3.8 1.7 123 373 354 NA N/A N/A N/A NA N/A N/A N/A N/A N/A N/A N/A N/A Exchange rate (local currency versus US$) ASEA Y E A R B O O K * Data from UNCTAD World Investment Report 2013 222 African Securities Exchanges Association Section Two : Trading Statistics Trading equity Statistics Indicators Total Value traded $ Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization (billions) end of year Market Capitalization as % of GDP** Turnover Velocity(%) * 2010 391,572,192.31 2011 477,523,919.44 2012 448,179,265.90 2013 485,719,802.03 6,800,155,462 4,610,008,413 3,513,176,891 2,996,886,088 39,655 30,983 21,426 19,000 79 78 79 67 76 74 70 63 3.88 3.69 3.964 5.203 42.75 36.29 35.26 44.75 10.08 12.94 11.31 9.34 *Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % 2010 23% 77% 100% % of the Total Value traded $ 2011 2012 36% 41% 64% 59% 100% 100% 2013 50% 50% 100% Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ASEA Y E A R B O O K 223 African Securities Exchanges Association Sectors Traded Sectors traded on the Stock Exchange Number of Companies Included in each Sector TOTAL Agri-Industrial Banking And Financial Beverages Conglomerate Construction And Materials Food Processing Industrial And Industrial Engineering Insurance Media Mining Paper, Packaging And Printing Pharmaceutical Property Retail Telecommunication Tourism Transport 2010 79 8 9 2 5 7 2011 78 8 9 2 5 7 2012 79 8 10 2 5 7 2013 67 7 7 2 5 7 6 12 6 12 6 12 4 8 5 1 4 1 5 1 4 1 5 1 4 1 5 1 4 1 1 4 9 1 3 1 0 4 9 1 3 1 0 4 9 1 3 1 0 4 8 1 2 1 5 Most Active Sectors ASEA Y E A R B O O K # 1 2 3 4 5 224 Sectors Beverages Telecommunication Conglomerate Banking and Financial Agri-industrial African Securities Exchanges Association Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2010 N/A N/A 2011 N/A N/A 2012 N/A N/A 2013 N/A N/A N/A N/A N/A N/A Section Four : Trading System Trading System ( MANUAL ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange Separate Company MANUAL If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: T+ 2 T+ 3 Others T+7 ASEA Y E A R B O O K 225 African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Products Product (Stocks,Bonds, Funds, ETF's, Derivatives, etc.) Stocks Debt Instruments Description of the Product Ordnary Shares and Preference Shares Corporate Debt Instruments Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Section Seven : Indices Indices Index Name ZSE Industrial Index Index Type (Price Index, Sector Index,..etc) The ZSE Industrial index is a value-weighted index for stocks in all sectors excluiding the mining sector. The start date is 19 February 2009; the base value is 100 points. The ZSE Mining index is a value-weighted index for stocks in the mining sector. The start date is 19 February 2009; the base value is 100 points. ZSE Mining Index ZSE Industrial Index ASEA Y E A R B O O K ZSE Mining Index 226 Closing 2012 152.40 Closing 2013 202.12 % Change 32.62 65.12 45.79 -29.68 African Securities Exchanges Association Section Eight : IPOs Please fill in the following table with the IPOs if you had any in your market in 2012-2013 2012 Company None Date of IPO Value of IPO ($ million) 2013 Company Date of IPO Value of IPO ($ million) None 2012 Company Date of Issue Face Value of Issue ($ million) None 2013 Company Date of Issue Face Value of Issue ($ million) None Section Nine : 2013 Rankings of Top 5 Trading Participants Ranking 1 Stockbrokerage Units N/A Purchases $ Sales $ Total $ ASEA Y E A R B O O K 227 African Securities Exchanges Association KHARTOUM stock exchange profile Website www.kse.com.sd Market Regulator None Al baraka Tower, El Qasr Ave. P.O. Box 10835, Khartoum ASEA Y E A R B O O K Address 228 Trading Session hours (local time) 1000-1100 hrs Time Zone GMT +3:00 Contact Person for ASEA Dr. Issam Elzein Elmahi Telephone (+249) 782152,(+ 249) 782250 Fax (+249) 782225 E-mail [email protected] Name of Local Currency Sudanese Pounds Listing of Foreign Domiciled Companies Allowed African Securities Exchanges Association Exchange background & 2013 market review About the KSE In the year 2013 most of trading indicator was rose from the previous year, where the Khartoum index raised from 2748.26 in the year 2012 to 3178.07 in 2013 this represent an increase of 15.6%. The market capitalization also increased from 9,634,988,645 in the year2012 to 11,154,927,797 in the year 2013 and this represent an increase of 22%. There were also increase in both the number of transactions, certificates traded and the total volume, while there were decrease in both the number of shares traded and the number of instruments traded. 2013 highlights In 2013, the KSE developed several strategies to provide an environment capable of attracting investment capital – (1) Providing investment environment capable of attracting capital, (2) Regulation and development of the capital market to ensure fairness, efficiency and transparency, (3) 21st century technology strategies, (4) enhanced market structure, and (5) investor protection initiatives. The Exchange continued its capital market development efforts to create a modern establishment that competes effectively with other exchanges, globally. Executive management The new organization structure of KSE consists of: • The general manager • Legal Advisor • Head of Markets • Head of Marketing and Research & Development • Head of the Administrative and Finance ASEA Y E A R B O O K the idea of establishing a stock exchange in Sudan started in 1962 whereby many formalities such as studies and communication had been started by ministry of finance and bank of Sudan jointly with IFC one of the arms of the world bank. In 1992 a serious step was taken to establish a stock exchange in Sudan in line with economic liberalization policy called the three years salvation program. The Khartoum stock exchange (KSE) was officially started operating in 1994, with the objective of regulating and controlling the issuance of securities, and mobilizing private savings for investment in securities. The traditional national assembly passed the KSE act, through which KSE acquired its independent legal status. In 2007 Khartoum stock exchanges joint the African markets union which is going to open new horizons of co- operation with regional stock markets. In the year 2010 was the adoption of market as observer in the union of Arab stock exchange to enjoy full membership but in 2011 Khartoum stock exchange was accepted as permanent member of the union of Arab stock exchange. Since the changes in technology and the economy moving in successive steps, It was necessary for the market to update regulations on an ongoing basis to allow him to work under the competition act in regional and global markets witnessed sharp, so in the beginning of the year 2012 was opened by the Minister of Finance and National Economy of the electronic trading system under the auspices of the President of the Republic. KSE was signed a memorandum of understanding with the national council for press and publication in the year 2013. KSE works in accordance with the principles of Islamic laws where there is a legitimate oversight body in KSE which oversees the legitimacy of the deals; and therefore the securities or financial instruments by a dealer. 2013 market review 229 African Securities Exchanges Association KSE Departments • • • • • • • • • Brokers & Trading Floor Affairs department Companies & Issues department Studies & Information department Central Depositary & saving department Financial department Administrative department Internal Auditing department Inspection & Audit department I T Department Targeted business development During the year 2013 Khartoum stock exchange continued its effort in the process of transforming sports club to public joint stock companies. Also in the same year Draft was prepared for the law of the market and because the current law has not seen any adjustments to keep pace with developments in the financial markets. Enhanced Regulatory Programs In 1994 the transitional national assembly passed the Khartoum stock exchange and since that date has not seen any adjustments so it was necessary to reconsider this law, so the market prepared a new one the capital market side and anther one for regulating the capital markets, which will take over the process of supervision and control and the development of the market. ASEA Y E A R B O O K 21st Century Technology Strategies 230 Work began on the new website of Khartoum stock exchange to keep pace with the electronic development that occurs in the regional and international markets. The market also began the second phase of electronic trading, which includes linking the market with brokerage firms (FIX ENGINE & FIX INTERFACE). Also the market will launch information dissemination system which is going to provide a marketing information services through what is known as investor gallery. Enhanced market structure (NA) Investor Protection Initiatives KSE’s management aims to protect investors in securities and to develop legislations relevant to the capital market to enhance transparency and implement the instructions of disclosure. Moreover, KSE’s management aims to disseminate awareness in the investment culture and follow up that parties subject to its supervision will adhere to the law and regulations and enhance the rule of law. KSE’s management also aims to: 1. Issue legislations that regulate and develop the capital market and assist in providing a proper environment for investing in securities. 2. Provide the investor with all necessary information needed to support his investment decision, including transparency and disclosure whether for issuing companies performance or for the trading process. 3. Develop the necessary financial services of the capital market. 4. Promote the establishment of mutual funds and regulate these funds to provide investment opportunities for small investors and efficient investment management. 5. Implement up to date international standards in the capital market and related entities for disclosure, electronic trading, electronic keeping and price settlement of securities, as well as upto-date International Accounting and Auditing Standards on parties subject to the KSE monitoring and supervision. African Securities Exchanges Association 6. Accredit the Standards of Professional Conduct for people working at the KSE, and their members. 7. Improve penalties on violators of the Law and those who commit prohibited acts. 8. Disseminate awareness among investors and the public in general in issues relevant to the national capital market and its entities, as well as other issues related to investing in securities. 9. Receive and investigate complaints from the public and investors, to undertake proper procedures by imposing penalties on violators of the provisions of Law, instructions, and regulations issued pursuant to it. 10.Enhance monitoring software on parties subject to the KSE surveillance and enhance daily supervision on trading at KSE. 11.Provide continuous training for KSE staff to enhance their academic and professional levels, in addition to people working in licensed financial services companies and registered persons. 2014 OUTLOOK Economy is affected by the Sudanese secession of the South and exit of oil revenues from the state budget, which led to a decrease in public revenues of the state and returns to export and foreign investment flows and the subsequent decreases in foreign reserves and the consequent pressure on foreign exchange as well as the high rate of inflation. Central Bank of Sudan is trying to maintain the stability of exchange rates and the development of monetary policies help to achieve the national goals of the national economy, this leads to a reduction in the poverty rate in the near term and long term and raise growth rate and attract foreign investment. Khartoum stock exchange seeks to promote a culture of investment in the securities and dissemination of knowledge among the public to attract the largest number of investors. The KSE is seek to Expand investment opportunities and work on removing constraints and Conversion of private companies to public joint stock companies and inclusion it in the market. other contribution factors to optimism about the KSE is find a permanent location for KSE, open new commodity exchange and Transform sports clubs to public joint stock companies. ASEA Y E A R B O O K 231 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators 2009 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) (UNCTAD) Unemployment rate (%)* Interest Rate (T-Bills) 31.9 32.9 34.0 30.00 31.50 60,421 64,881 69,610 55,192 53,850 11.20 15.4 18.91 30.25 40.3 N/A N/A N/A N/A N/A 50 55 60 60 58 N/A N/A N/A N/A N/A 2.24 2.5 2.68 4.41 5.7 Exchange rate (local currency versus US$) ASEA Y E A R B O O K * Source Khartoum Stock Exchange Annual Reports Source: Central Bank of Sudan 232 ASEA Y E A R B O O K 9.45 3.95% 2.56 50 55 8,266 968,926,001 903,848,881 2010 2011 8.87 4.74% 3.3 54 56 8,069 956,204,095 956,204,095 9.50 4.00% 2.2 54 59 12,689 172,581,304 698,529,550 2012 * Turnover Velocity = (Monthly value traded of listed shares/month-end market cap) x 12 (annualized). 4.59 2.6 Market Capitalization (billions) end of year Turnover Velocity(%) * 50 Number of traded companies 4.01% 53 Number of listed companies Market Capitalization as % of GDP 7,870 100,292,423 Total volume traded Total number of transactions 1,002,925,012.00 2009 Total Value traded $ Indicators Trading equity Statistics Section Two : Trading Statistics 9.60 4.16% 2.1 31 60 16,435 15,676,127 682,152,754 2013 African Securities Exchanges Association 233 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors Foreign Investors Local Investors Total % 2009 29.9 70.1 100% % of the Total Value traded $ 2010 2011 2012 35.8 40.1 42.8 64.2 59.9 57.2 100% 100% 100% 2013 33.2 66.8 100% Insitutions Vs. Individuals Institutions Individuals Total % 70.3 29.7 100% 77.5 22.5 100% 79.9 20.1 100% 80 20 100% 66.4 33.6 100% Sectors Traded Sectors traded on the Stock Exchange Banking Insurance Commercial Industrial Agricultural Communication Services Other Investment funds Certificates Number of Companies Included in each Sector 2009 20 8 7 2 3 5 5 4 34 34 ASEA Y E A R B O O K Fixed Income Market Segment Preference shares N/A Government of sudan N/A Treasury Bonds Corporate Bonds N/A 234 2010 20 8 7 2 3 5 5 5 34 45 2011 21 8 7 2 3 5 5 5 25 40 2012 23 8 7 2 3 5 5 6 25 40 2013 23 8 7 2 3 5 6 6 25 40 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A African Securities Exchanges Association 5 Most Active Sectors # 1 2 3 4 5 Sectors Government Musharaka Certificates Investment Funds Banking Insurance Telecommunication and Media Section Three: Bonds Statistics Bonds Statistics Bonds Total Value traded $ Value traded on governmental bonds ($) Value traded on corporate bonds 2009 N/A N/A 2010 N/A N/A 2011 N/A N/A 2012 N/A N/A 2013 N/A N/A N/A N/A N/A N/A N/A Section Four : Trading System Trading System ( Electronic trading system ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought First Information Technology (FIT) 2012 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? If Separate Company please mention its name Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Clearing and Settlement is conducted in: The Stock Exchange Separate Company Yes First Information Technology(Fit) 2012 Yes ASEA Y E A R B O O K T+ 2 T+ 3 Others Yes 235 African Securities Exchanges Association Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Products Product (Stocks,Bonds, Funds,ETF's,Derivatives ..etc) Shares Sukkuk Description of the Product Common Shares Government investment sukkuk & Government Musharka Certificates Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Section Seven : Indices Indices ASEA Y E A R B O O K Index Name Khartoum Index 236 Index Type (Price Index, Sector Index,..etc) Price index. The index returns are based on capital gains / losses of the largest 20 securities listed on the KSE, valued by full market capitalisation. Khartoum Index Closing 2010 2,267.92 Closing 2011 2,286.46 % Change 0.82 Khartoum Index Closing 2011 2,286.46 Closing 2012 2,748.26 % Change 20.20 African Securities Exchanges Association Khartoum Index Closing 2012 2748.26 Closing 2013 3178.07 % Change 15.64 Note: Khartoum Index series were launched on October 2003 Section Eight : IPOs 2009 Company None Date of Issue None Value of Issue ( $ million ) None There was no IPOs/Rights Issues in 2009. 2010 Company N/A Date of Issue Value of Issue ( $ million ) 2011 Company N/A Date of Issue Value of Issue ( $ million ) 2009 Company None Date of Issue None Value of IPO ($ million) None There was no IPOs/Rights Issues in 2009. 2010 Company N/A Date of Issue Value of IPO ($ million) 2011 Company N/A Date of Issue Value of IPO ($ million) 2012 Company N/A Date of Issue Value of IPO ($ million) 2013 Value of IPO ($ million) ASEA Date of Issue Y E A R B O O K Company N/A 237 African Securities Exchanges Association Section Nine : 2011 Rankings of Top 5 Trading Participants Ranking 1 Ranking 1 Equity Transactions Section Nine : 2011 Rankings of Top 5 Trading Participants $ Sales Purchases $ Sales $ $ ASEA Y E A R B O O K $ N/A Bond Transactions N/A Members’ Contacts are available on the KSE website www.kse.com.sd 238 Total Total $ African Securities Exchanges Association Cape Verde Stock Exchange profile Website Market Regulator Address www.bvc.cv General Auditor of Securities Market - AGMVM (Cape Verde) 16st Floor, Lg Europe, Achada Santo António, P O Box 115/A Praia CAPE VERDE Trading Session hours (local time) 8:30 am - 3:00 pm Time Zone Greenwich Mean Time - 1 hours Contact Person for ASEA Manuel Lima / Radhia Leal Telephone +238 2603030 / 2603031 Fax +238 2603038 E-mail [email protected] / [email protected] Name of Local Currency ECV - Capeverdian Escudos Tax Rates (dividends, interest, capital gain) dividends 0% (domestic investors and foreign investors); interest-Corporate Bonds 5%; interest-Treasury Bonds 0% capital gains 15% Listing of Foreign Domiciled Companies N/A Commodities Exchange N/A ASEA Y E A R B O O K 239 African Securities Exchanges Association Cape Verde Stock Exchange Background Introduction The Cape Verde Stock Exchange (BVC) Exchange is a Limited Liability Corporation of public capital endowed with financial autonomy as well as administrative, established under Law nº 51/V/98 of 1998. It became fully functional in 2005, after changes to its systems. The BVC underwent a deep financial reform, which now, renders it more modern and effective and, is structured in accordance with international standards with the goal to transform Cape Verde into an attractive and competitive financial platform. The Market is regulated by the Bank of Cape Verde (BCV) through General Auditing of the Securities Market (AGMVM) and as member of ANNA - Association of National Numbering Agencies acts as the Cape Verde National Agency of Codification. BVC’s mission is to promote a dynamic, sustainable and credible capital market, attractive and alternative for the creation of an efficient market, modern and at par with the international standards. 2013 Market Review Overall, actions that focus on developing the market and, simultaneously, increase its quality, stability, sustainability, strengthening the corporate brand and its structure, internal functioning, boost the Public Debt Market, promoting financial literacy, were carried out throughout 2013. The year was marked by the effectiveness of some important projects and activities such as: • Launch of the new corporate website, • Two Public Offerings (Inpharma S.A. and IFH S.A.); • Official launch of the Platform Auction • First Strategic and Business Roundtable, • Automation (real Time) for settlement of transactions with the Bank of Cape Verde (BCV), among others. Financial Benefits Given the strategic importance of the capital market to the Cape Verdean economy, a seductive financial sector was created for companies and investors interested in investing in the Stock Exchange. Bonds yield or products of a similar nature, that are not Treasury Securities, listed on the Cape Verde Stock Exchange are taxed at a rate of 5% (five percent) until December 31st of 2017, the incomes earned from that date are applied the normal rate applicable to income of type. (Under Article 23 of Law no. 26 /VIII/2013, 21. ASEA Y E A R B O O K As for Treasury Securities, the incomes / interests are exempt from income tax and stamp duty. Capital gains resulting from purchase/sale are taxed 15% of the income tax. The BVC has been a valuable and necessary partner to the growth of the Cape Verdean economy as well as the country´s overall development. 240 Treasury Securities Reform and Admission to Market on Stock Exchange Treasury securities reform was carried out with the objective to guarantee adequate Government financing over the long run, increasing the number of participants in the primary market as well as increasing the potential of saving mechanisms, including: respective settlement in the African Securities Exchanges Association secondary market, improving management emissions and creating mechanisms that would permit the control and effective follow-up of the treasury securities before and after emission. This reform permits all investor direct access to the primary Treasury bond market, having positive implications on Market Capitalization and on the financial cost to the State. In 2013, Treasury Bills and Treasury Bonds increased from 46 to 221 Titles due to the transfer of custody from Bank of Cape Verde (BCV) to BVC, as well as the admission to the market on the Stock Exchange of all existing Treasury Securities on May 2013. Quoted Companies and Market Capitalization Currently, market capitalization is about 55.196.494.698, 00 CVE divided amongst listed Securities in the Equity, Corporate Bonds and the Treasury Bond segments. In 2013, the Volume of Emission in the Primary Market decreased slightly, closing at 9,603,930,051 CVE and the Secondary Market continued the downward trend as the volume of transactions decreased to the lowest record of 105.929.839 CVE. There was an increase of 6, 97% in the number of Corporate Bond Listed, registering no change to the number of Listed Companies - Equity (4) and to the number of Listed Municipal Bond (2). The Treasury Securities admission to the market, have spurred an increase of 95.65% of the global market capitalization over 2012, making the global market capitalization weight in GDP increase to 31%. As for the listed companies in the Equity market segmentation, BVC faced the devaluation of Sociedade Caboverdiana de Tabacos equity, which, from December 2012 to December 2013, decreased around 38%. On the other hand, there was a slight increase in the remaining quotations, being Enacol with 19%, Caixa Económica de Cabo Verde with 11% and BCA with 0.33%. Negotiation and Settlement System In the context of the development of the new Auctions platform, in 2013 was developed and materialized the automatic settlement process, real-time stock operations within the Bank of Cape Verde, namely, operations in the primary and secondary market and, corporate events. The developments made, aims the creation of an automatic process that allow interaction between Sifox BackOffice and Management Deposit and Settlement System of the Bank of Cape Verde. Partnership and Associations Through the years, the BVC has strengthened its principle partners, such as, Euronext Lisbon and; Interbolsa, which is an agency of Euronext Lisbon, with the Caixa de Crédito Agrícola, with the OPACCV which is a Professional Association of Accountants and Auditors of Cape Verde and the Ministry of the Finances and Public Administration. ASEA Y E A R B O O K In 2013 has celebrate a partnership with the Universidade de Mindelo in the ambit of Financial Literacy Program. During 2013 BVC attended most of the General Meetings and events organized by national and international Associations which BVC is part/member of, with the goal to maximize its activities and internationalize the market. 241 African Securities Exchanges Association Perspectives for 2014 There are still many challenges to be addressed in order for the BVC to reach its potential. This includes the following: For the year 2014, it is expected further expansion of activities, as for the 2014 Activities Plan and, continuing the plans outlined and started in the previous year. The main objectives remain the boost of the Secondary Market of Public Debt, the creation of Market Makers, the consolidation of international partnerships aiming emissions in the Diaspora, especially the Diaspora Bond. International publicity for the Cape Verde Stock Exchange on major channels aiming towards increased notoriety and in doing so, attracting investors from diverse corners of the world. Staff training in financial systems in a way to reinforce staff capacity with the purpose to accompany international dynamics. Financial Literacy Project, strengthening contacts with schools and Universities, aware that a continual flow of information versus education among young people is essential for the expansion of greater Financial Culture. In another perspective, Cape Verde Stock Exchange, taking advantage of the same strategy, intend to expand the business world seeking for a commitment to trade on the Stock Exchange. To this end, BVC intends to reinforce bonds with local entrepreneurs, listen to their questions, doubts and concerns with purpose of taking every possible opportunity of funding. ASEA Y E A R B O O K Although believing that our capital market has developed, there are several levels to be achieved, among them, the development of new financial products and the enhancement of the secondary market, key points for affirmation and consolidation of Cape Verdean capital market. BOLSA DE VALORES DE CABO VERDE 242 African Securities Exchanges Association Statistics Section One : Economic Indicators Main Economic Indicators Indicators * 2010 2011 2012 2013 Population (million) Real GDP (USD) (millions) at market exchange rates Inflation rate (%) Net Foreign Direct Investment (USD) (Millions) Unemployment rate (%) Interest Rate (T-Bills) 0.53 0.53 0.56 0.56 1,938.00 1,890.00 3.2 1.5 1,900.00 1,856.00 Exchange rate (local currency versus US$) 1.41 6.50 1767.44 112.00 93.00 71.00 10.7 12.70 12.20 16.80 3.625 4.06 6.6 3.2578 83.03 81.6 85.2 83.169 “* Source www.worldbank.org; www.imf.org; www.tradingeconomics.com; www.minfin.gov. cv; www.bcv.cv; www.ine.cv“ Section Two : Trading Statistics Trading equity Statistics 2011 533,310.93 2012 271,933.69 2013 446,318.09 120,502.00 17,126.00 156,690.00 11,513.00 215.00 71.00 301 55 4 4 4 4 4 4 4 4 84,913,010.47 75,556,452.41 84,430,843.68 89,364,316.03 4.58% 3.98% 0.043565967 0.047282707 4.89% 0.71% 0.003220786 0.004994366 * Turnover Ratio (%)= value traded of listed securities/market capitalization ASEA 2010 4,156,256.95 Y E A R B O O K Indicators Total value traded Total volume traded Total number of transactions Number of listed companies Number of traded companies Market Capitalization ($) end of year Market Capitalization as % of GDP Turnover Ratio (%) * 243 African Securities Exchanges Association Investors Type Foreigners vs. Local Investors Type of Investors 2009 N/A N/A Foreign Investors Local Investors Total % N/A % of the Total Value Traded 2010 2012 N/A N/A N/A N/A N/A N/A 2013 N/A N/A N/A Insitutions Vs. Individuals Institutions Individuals Total % N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Sectors Traded Sectors traded on the Stock Exchange ASEA Y E A R B O O K Domestic Board Banking 244 Financial Services Retail & Wholesaling Property Funeral Services Security Services Information Tecchnology Energy Tourism Fuel And Oil Industrial and Allied Health Foreign Board Financial Services Mining & Minerals Retail & Wholesaling Corporate Bonds Number of companies included in each sector 2010 2011 2012 2013 2 2 2 2 1 1 1 1 1 1 1 1 16 16 16 18 African Securities Exchanges Association Table 5: 5 Most Active Sectors in 2013 # 1 2 3 4 Sectors Comercial Banks Fuel and Oil Corporate Bonds Industrial and Allied ASEA Y E A R B O O K 245 ASEA 246 827,351.66 2013 16,477,848.44 7,796,866.80 8,322,167.72 3,852,528.09 59,277.01 3,852,528.09 2012 Value traded on corporate bonds 8,322,167.72 2011 768,074.64 16,477,848.44 7,796,866.80 2009 2010 Value traded on governmental bonds Total Value traded Bonds Table 6: Bonds Statistics Section Three: Bonds Statistics Y E A R B O O K African Securities Exchanges Association African Securities Exchanges Association Section Four : Trading System Trading System ( SIFOX DEAL ) Is this system locally developed or bought? If bought, who is the Vendor? Year of implementing the system: Bought Finantech - Portugal 2005 Section Five : Clearing and Settlement Where do Clearing & Settlement take place? The Stock Exchange Yes Separate Company If Separate Company please mention its Central Securities Depository Botswana name Is this system locally developed or bought? Yes If bought, who is the Vendor? Finantech - Portugal Year of implementing the system: 2005 Clearing and Settlement is conducted in: T+ 2 T+ 3 Others T+0 Section Six : Products traded on the Stock Exchange Types of markets in the Stock Exchange Equity Market Cash Market Derivative Market Bond Market Yes Yes Products Product (Stocks,Bonds, Funds,ETF's,Derivatives ..etc) Stocks Bonds Description of the Product Common shares Government and Corporate bonds ASEA Y E A R B O O K 247 African Securities Exchanges Association Section Seven : Trading Mechanism Margin Trading Intraday Trading Online Trading Yes Section Seven : Indices Indices Index Name Domestic company Index Foreign company index ASEA Y E A R B O O K Domestic Company Index Foreign Company Index 248 Index Type (Price Index, Sector Index,..etc) N/A N/A Closing 2012 N/A Closing 2013 N/A N/A N/A % change African Securities Exchanges Association Section Eight : IPOs Company None 2012 Date of IPO Value of IPO ($ million) 0 0 Debt securities 2012 Company ELECTRA ASA Tecnicil Imobiliária Value of IPO ($ million) 0 2013 Company IFH INPHARMA Value of Issue ( $ million ) Section Nine : 2011 Rankings of Top 5 Trading Participants Ranking 1 2 3 4 5 Stockbrokerage Units BCN BCA CECV BIA BAI Purchases $ 643,568.34 235,608.94 153,559.02 226,312.50 14,248.10 1,273,296.89 Sales $ 677,547.16 212,945.51 187,828.93 48,466.38 146,508.92 1,273,296.89 Total $ 1,321,115.50 448,554.45 341,387.95 274,778.87 160,757.01 2,546,593.78 ASEA Y E A R B O O K 249 ASEA Y E A R B O O K African Securities Exchanges Association 250 AFRICAN SECURITIES EXCHANGES ASSOCIATION ASEA SECRETARIAT THE EXCHANGE BUILDING, 55 WESTLANDS ROAD, P. O. BOX 43633 - 00100 NAIROBI KENYA TEL: + 254 (20) 2831000 EMAIL: [email protected] www.african-exchanges.org
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