BVMAC Sees Sluggish Trading in January Amid Market Weakness

AFRICAN STOCKS AND FINANCEFebruary 5, 2025 at 12:44 PM UTC

TLDR

The Central African Stock Exchange (BVMAC) recorded low trading activity in January
The BVMAC ASI index fell 2.75% to 924.72 points, driven by Socapalm’s 5.4% decline
BGFIBank and CBC’s IPOs and SNPC’s bond issue are expected to enhance liquidity and investor interest

The Central African Stock Exchange (BVMAC) recorded low trading activity in January, with 15 of 22 sessions closing without a single transaction. In the remaining seven days, there were 25.38 million FCFA in total trades, significantly lower than the 14.26 billion FCFA recorded in January 2024.

The BVMAC ASI index fell 2.75% to 924.72 points, driven by Socapalm’s 5.4% decline, though SCG Ré (+2.3%) and Safacam (+0.76%) helped offset losses.

Despite weak trading, new listings may boost the market, with BGFIBank and CBC planning public share offerings. In the bond market, SNPC launched a 100 billion FCFA bond, set to close in February.

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Points clés à retenir

The BVMAC, which serves the six CEMAC countries, reported a significant rise in Q3 2024 transaction volumes, totaling 1.714 billion FCFA (2.6 million euros) across 175,759 securities. This marks an 800% increase from the previous quarter, largely driven by bond trading. However, the total is still far below the record 14.2 billion FCFA seen in Q1 2024. The slow start to the year signals weak investor sentiment, but upcoming listings could drive market recovery. BGFIBank and CBC’s IPOs and SNPC’s bond issue are expected to enhance liquidity and investor interest.

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