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STOCK EXCHANGE : Cosumaf/Bvmac examine new revitalization reforms

Representatives of Cosumaf, Beac, stock exchange companies and portfolio management companies have come together to examine the visibility of the Central african securities exchange and the liquidity of securities listed on the stock exchange. This was during a workshop held on July 6 and 7, 2023.

In particular, the Central African Financial Market Surveillance Commission (Cosumaf), the Bank of Central African States (Beac), stock exchange companies (SDB), portfolio management companies (SGP) tabled on reforms such as; The multi-fixing, the daily quotation, the establishment of a stock index, the liquidity contracts and the splitting of the listed shares.

Concretely, this workshop aims to revitalize the Central african securities exchange (Bvmac) and to improve its visibility as well as the liquidity of listed securities. The observation is clear that out of the thirty scholarships that the African continent has, the Bvmac is in the tail pack. While waiting for its 2022 financial statements, the Bvmac ended the 2021 financial year in the red line for the 3rd consecutive year, with a negative net result of 237 million FCFA. A net loss that has however improved as compared to the 787 million FCFA of the previous financial year.

Among the reforms examined, the multi-fixing was adopted by many stock exchanges, including the Casablanca stock exchange, this method of listing consists of reproducing several fixings during the same trading session. Its objectives are to increase the average volume of transactions per session; and the average number of contracts registered per session. As for the daily quotation, Louis Banga Ntolo is already nurturing the idea of increasing the number of quotation days from 3 to 5, that is to say from Monday to Friday, no longer on Mondays, Wednesdays and Fridays as is customary.

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In a recent interview, the Managing Director of the subregional stock exchange hinted that talks have already been started on the establishment of the very first stock market Index, the adoption of this reform with the regulator and will come into force by the end of 2023. « The market in the subregion is not visible internationally, simply because we lack an indicator, which is the indicator by which we present the stock markets in the world, that is to say the index. The Cosumaf regulator must give me permission to create the first index », argues Louis Banga Ntolo.

Finally, the splitting of listed shares was also highlighted during the workshop. This is a listing method initiated by a publicly traded company whose main purpose is to lower the company’s share price. The adoption of this reform would be a boost for investors who are experiencing difficulties buying securities given its high price. As proof, the 6 shares offers listed at the Bvmac oscillate between 20,000 and 200,000 FCFA.

Sorelle Ninguem

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