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 Senegal Finally Listed • Market Making Up for January Underperformance • Agriculture S ll in the Red
The BRVM Market
• A er a false start in January (-2.0%), the market did rebound in February, in part thanks to the lis ng 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 posi ve, yet very small, posi ve 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, Distribu on stormed into the market, following its lis ng on February 20th. Between then and the end of the month, the la er stock was trading at XOF 18,505, an increase of 54.2% over its lis ng 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 pos ng 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 s ll 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 Niger, 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 lis ng 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 ac on 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 lucra ve investment opportuni es. With this, Total posi ons itself as a major player in energy. Its ac vi es 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 rela vely low (23.3% in 2013), the company is the main shareholder in 3 of the 5 Senegalese oil sector players. A situa on which also represents a risk and challenges for Total Senegal because of the financial difficul es witnessed by these en es. Another challenge to take into account is the one related to the oil prices drop on the interna onal market. “Total Senegal’s opera ons are affected by the vola lity of prices for crude oil and petroleum products. A drop, significant fluctua on, prolonged or significant changes in prices adversely affect Total Senegal ac vi es, financials or EBITDA” as s pulated in the IPO prospectus. Source : Agence EcoFin
• The Regional Stock Exchange (BRVM) in West Africa will be hos ng five new companies in 2015, as announced by Edoh Kossi Amenounve, the Abidjan based Stock Exchange General Manager, on February 3rd. Mr. Amenounve said that Bank of Africa Mali and two other banks ac ve in Burkina Faso and Togo are among the companies that will have an IPO this year. Source : Agence EcoFin
• According to a study published on February 12th, the consul ng firm BCG es mates 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 tradi onal banking services. In this situa on, the banking of the greatest number as desired by the authori es, will have to go through the mobile, which is in the pocket of more than half of Africans over fi een years old” says Othman Omary, principal analyst at BCG office in Casablanca. The firm es mates 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 tradi onal 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 co on purchases, ginning, storage and marke ng costs during Benin’s 2014/15 co on season. The regional bank will lend XOF 25 billion as part of the financing, while a pool of banks including Ecobank, BOA , Banque Atlan que, 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 a er Benin’s government took over management of the co on sector in 2012. Benin lowered the co on farmgate price for the 2014/15 season, promp ng anger from co on farmers. However, the new price of XOF 250 per kg remains higher than other regional producers, and poten ally risks pu ng a strain on government finances, according to an Ecobank Research report. Benin produced 307,355 tons of raw co on in the 2013/14 season, according to the BOAD statement and is projec ng output of 360,000 tons this season. Source : BusinessDay, Nigeria Annexes
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