BRVM MONTHLY NEWSLETTER

Numéro 38 Saturday, February 28, 2015

Indexes Level and Trading Volume - February 2015

275 1800

1600 270,3 270 1400

1200 265 1000 Trading Volume, in XOF Mns BRVM 10 259,1 800 260 BRVM COMPOSITE 260,7 600

400 255 251,8 200 343 1141 228 472 481 269 205 218 153 1059 210 278 173 334 1004 533 561 1639 135 250 0 2 3 4 5 6 10 11 12 13 16 17 18 19 20 23 24 25 26 27

Market Performance Sector Returns Top 5 Traded BRVM 10 BRVM Comp XOF Volume % Market Close 270,3 260,7 Industry 2,0% SNTS 4 794 200 210 50,8% 1 month gain/loss 9,8 7,7 Public Services 7,0% ONTBF 640 127 780 6,8% MTD change 3,8% 3,1% Finance -1,7% SGBC 637 448 600 6,8% YTD change 1,0% 1,0% Transport 1,6% BOAN 558 717 885 5,9% Agriculture -4,6% SDCC 386 566 535 4,1% Distribution 4,8% Total 9 436 348 655 100%

Highlights of the Month

• Total Finally Listed • Market Making Up for January Underperformance • Agriculture Sll in the Red

The BRVM Market

• Aer a false start in January (-2.0%), the market did rebound in February, in part thanks to the lisng of the Bank of Africa Senegal (see below) and the following animated environment.

• The BRVM 10 index was up 9.8 points (3.8%) and the BRVM Composite index gained 7.7 points (3.1%). A rebound that allowed the BRVM to record a posive, yet very small, posive year to date performance.

• Market trading volume has been average with a total amount of XOF 9.4 billion, of which SNTS represented 50.8%, a typical share for the Senegalese giant Telco. The other most traded stocks also belong to the Public Services sector (7.0%) with ONTBF and SDCC for 10.9% of the market ; and from the Finance sector with SGBC and BOAN for 12.7% of the market.

Market Key Figures

TTLS, +54,2%

BICC, +13,9%

CIEC, +11,5%

SIVC, +8,3%

SNTS, +6,9%

SHEC, -4,8%

NTLC, -6,7%

SOGC, -6,9%

CABC, -9,2%

BOAN, -13,5%

-15,0% -5,0% 5,0% 15,0% 25,0% 35,0% 45,0% 55,0%

Stocks Behavior

• Just like Bank Of Africa Senegal, BOAS, Finance, a couple of months ago, Total Senegal, TTLS, Distribuon stormed into the market, following its lisng on February 20th. Between then and the end of the month, the laer stock was trading at XOF 18,505, an increase of 54.2% over its lisng price of XOF 12,000.

• Public Services stocks were also on the rise this month with CIE CI, CIEC (11.5% ; XOF 7,500) and Sonatel SN, SNTS (6.9% ; XOF 24 800).

• BICI CI, BICC, Finance (13.9% ; XOF 10,990) is another stock posng a double digits performance, while Air Liquide, SIVC, Industry closed the month at XOF 26,000 thanks to a gain of 8.3%.

• On the down side, the Agriculture sector (-4.6%) is sll leading the way this month with similar stock performances: SOGB CI, SOGC value decreased by XOF 2,000 (-6.9%) ; SAPH CI, SPHC lost 4.5% (XOF -700) and PALM CI, PALC set back by 3.7% (XOF -700).

• But the worst stock performance stock belongs to the Finance sector (-1.7%) with Bank of Africa , BOAN and a lost of XOF 12,440 (-13.5%).

WAEMU NEWS

• The Senegalese subsidiary of the French energy group Total, was finally listed on the BRVM on February 20th , 2015. The procedure chosen for the lisng was the ordinary procedure. The first trading session will therefore be determined on the basis of bid/ask orders, with the stock reference value of the acon as base price, which was set at USD 20 (XOF 12 000), prices against which 1,005,300 shares of the company went public in late 2014. The arrival of this new player in the market should give a strong signal to investors seeking lucrave investment opportunies. With this, Total posions itself as a major player in energy. Its acvies cover all segments of the oil and gas industry and also evolve in the fields of chemistry and renewable energies. Although its market share is relavely low (23.3% in 2013), the company is the main shareholder in 3 of the 5 Senegalese oil sector players. A situaon which also represents a risk and challenges for Total Senegal because of the financial difficules witnessed by these enes. Another challenge to take into account is the one related to the oil prices drop on the internaonal market. “Total Senegal’s operaons are affected by the volality of prices for crude oil and petroleum products. A drop, significant fluctuaon, prolonged or significant changes in prices adversely affect Total Senegal acvies, financials or EBITDA” as spulated in the IPO prospectus. Source : Agence EcoFin

• The Regional Stock Exchange (BRVM) in will be hosng five new companies in 2015, as announced by Edoh Kossi Amenounve, the based Stock Exchange General Manager, on February 3rd. Mr. Amenounve said that Bank of Africa and two other banks acve in and are among the companies that will have an IPO this year. Source : Agence EcoFin

• According to a study published on February 12th, the consulng firm BCG esmates that some 251 million people in sub-Saharan Africa will be banked via mobile by 2019. “In Africa, less than 30% of residents have access to tradional banking services. In this situaon, the banking of the greatest number as desired by the authories, will have to go through the mobile, which is in the pocket of more than half of Africans over fieen years old” says Othman Omary, principal analyst at BCG office in Casablanca. The firm esmates that 400 million people will in 2019 possess a mobile phone in sub-Saharan Africa and will, thanks to their growing income, require banking services. Of this figure, only 149 million will be directed to tradional bank networks. Because of the lack of accessible banks branches for everyone and income not allowing them to afford basic banking services fees, there will be 251 million people available for mobile banking. BCG also believes that M-banking services in 2019 will generate at least USD 1.5 billion of revenue on payment services alone. Revenues are expected to be much higher if we take into account the savings, insurance, and to a lesser extent the credit. According to the study, banks and telecom operators each have the capability of taking advantage of this growth in mobile banking market. Source : Agence EcoFin

• The West African Development Bank (BOAD) has arranged XOF 115 billion (USD 199 million) in loans to pay for coon purchases, ginning, storage and markeng costs during ’s 2014/15 coon season. The regional bank will lend XOF 25 billion as part of the financing, while a pool of banks including , BOA , Banque Atlanque, BGFI Bank, Diamond Bank , BSIC and UBA will contribute the balance. This will be the third season that the BOAD has arranged financing for the crop aer Benin’s government took over management of the coon sector in 2012. Benin lowered the coon farmgate price for the 2014/15 season, prompng anger from coon farmers. However, the new price of XOF 250 per kg remains higher than other regional producers, and potenally risks pung a strain on government finances, according to an Ecobank Research report. Benin produced 307,355 tons of raw coon in the 2013/14 season, according to the BOAD statement and is projecng output of 360,000 tons this season. Source : BusinessDay, Nigeria Annexes

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