Douala Stock Exchange : share, bond market witness increase

The 2014 report indicates continued activities on its compartments of shares and bonds.

The 2014 report of the Douala Stock Exchange market is out. A close reading of the report points to the fact that the market enterprise by the Financial Markets Commission has progressively witnessed increase shares and bonds.

Share Market

The capitalization of equity securities in 2014 had risen by 18.67 per cent compared to 23.21 per cent the same time in 2013. The increase was attributed to the good performance of the Dizangue-based ‘Société Africaine Forestière et Agricole du Cameroun,’ SAFACAM and the ‘Société Camerounaise de Palmeraies,’ SOCAPALM shares which gained respectively 13 and 26 per cent on capitalization.

The total number of shares exchanged progressed from 7,707 in 2013 to 42,261 in 2014. Turnover in 2014 was FCFA 1.9 billion compared to FCFA 544.1 million in 2013. The report however notes that the company that traded most on shares was SOCAPALM representing 81 per cent of volumes and 84.5 per cent of total turnover for the market.

Bond Market

The bond market in the beginning of 2014 had four issuers: the Washington-based International Finance Corporation, an institution of the World Bank Group, MOABI, with a value of 4.25 per cent between 2009-2014; the institution for development and finance in the Central African Economic and Monetary Community, CEMAC zone, Development Bank of Central African States, BDEAC, with a net value of 5.5 per cent from 2010-2015; the State of Cameroon, ECMR with a net value of 5.9 per cent from 2010-2015; the State of Chad, with a value of 6 per cent of from 2013 to 2018 and another ECMR with value net value of 5.9 per cent from 2013-2018.

One new bond is reported to have added in 2014 ushering in an international financial institution specialized in the promotion of public and private investments, the ‘Fond Africaine de Garantie et de Coopération Economique,’ FAGACE with net value at 5.25 per cent from 2014-2019.

The market is reported to have driven by buyback transactions ordered by the banks, who are the main bond holders in terms of volume. 118,381 bonds changed hands with a total value of FCFA 1.1billion compared to FCFA 525,852 in 2013, a fall in exchange volume of 77 per cent.

However, the report notes that over-the-counter market showed no activity in 2014. The market, which was dedicated to the investment of Zero Coupon Treasury Bonds, showed no activity during 2014 because of a combination of two factors; the respect of its obligations by the State on one hand and a significant fall in new securisations of debts on the other hand.

The President of the Board of Directors, Bénédict Belibi sees through the Douala Stock Exchange, a national development tool for the economy’s growth and the country’s emergence while the Managing Director, Pierre Ekoule Mouangue perceives an invigorated Douala Stock Exchange in the next three years.