Central Africa Stock Exchange Sees 800% Jump in Q3 Transactions
TLDR
- Central African Stock Exchange (BVMAC) sees 800% rise in Q3 2024 transaction volumes, driven by bond trading
- Outstanding bond debt surpasses 1,200 billion FCFA, with Cameroon, Gabon, and Congo bonds most active
- Equity transactions highlight Socapalm, Safacam, and La Régionale Bank shares, with liquidity ratios remaining low
The Central African Stock Exchange (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.
With over 1,200 billion FCFA in outstanding bond debt, bonds remain the primary driver of BVMAC’s activity. In Q3, 171,255 debt securities were traded for a combined value of 1.5 billion FCFA, with Cameroon (ECMR6), Gabon (EGA07), and Congo (ECG02) bonds being the most active.
Equity transactions focused on Socapalm, Safacam, and La Régionale Bank shares, valued at 185.8 million FCFA, but liquidity in the equity segment remained low, with a liquidity ratio of only 0.31%. Socapalm’s stock dropped by 6% in Q3, affecting the BVMAC-ASI index, which fell by 0.03%.
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Key Takeaways
BVMAC’s Q3 surge reflects a growing appetite for bond trading in the CEMAC zone, despite low liquidity in equities. The market’s robust year-to-date performance, with 16 billion FCFA in transactions, has already surpassed last year’s total of 12.4 billion FCFA. In 2023, investors received 79.5 billion FCFA in dividends and interest, a 65% increase from the previous year. The BVMAC’s strong bond trading activity underscores the market’s reliance on debt securities, especially from government issuers. With continued growth in bond activity, the exchange may look to improve liquidity in its equity segment to attract broader participation and sustain its upward trajectory.
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