ASEA Newsletter 2012 (Final).pdf

7/30/2019 ASEA Newsletter 2012 (Final).pdf

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ASEA Conference in Egypt

Issue 1 |November 2012

ASEAUnleashing Africas Investment Potential - What could be done by African Capital Markets

ASEA

Conference

PreviousASEA

Conference

held at

Morocco

Marrakech

ASEA

Board

Members

A Newsletter ofASEAMembers


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Contents

All rights reserved. Reproduction in whole or in part without written permission of the editor is strictly prohibited. The greatest care has been

taken in compiling this Newsletter publication. However, no responsibility can be accepted by the publishers or compilers for accuracy of the

information presented.

1. About ASEA

2. Focus on New Member: Sierra Leone Stock Exchange

3. Interview with Mr. Oscar Onyema, Director General and Chie Excutive

Nigerian Stock Exchange

4. Expert Article: Maximizing value through Strategic Investor Relations

by Anne Guimard

5. Member Exchange News

6. Member Hal Yearly Statistics


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ASEA

Brie


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5I 2012IIssue 1ASEA

President : Mr. Sunil Benimadhu, Chie Executive, Stock Exchangeo Mauritius

Secretary : Ms. Silvana Wanjiru KamauWebsite : www.aricansea.orgContact : [email protected]

[email protected]

1.Summary o Highlights1. The Association has partnered with FTSE International to

develop, launch and manage a FTSE branded pan Arican index.The index will be launched on December 3rd 2012 in Cairo,Egypt.

2. On December 2nd 2012, the Arican Securities ExchangesAssociation (ASEA) will hold its 16th Annual General Meeting atthe Smart Village Conerence Centre, Cairo, Egypt.

3. The ocials o the Executive Committee o the Arican SecuritiesExchanges Association are as ollows:-

President: Mr. Sunil Benimadhu, Chie Executive: StockExchange o Mauritius;

Vice President: Mr. Geo Rothschild, Head: Governmentand International Aairs: JSE Ltd.;

Mr. Joseph S. Kitamirike: Chie Executive Ocer: UgandaSecurities Exchange;

Dr. Mohammed Omran, Executive Chairman: TheEgyptian Exchange;

Mr. Peter Mwangi, Chie Executive: Nairobi SecuritiesExchange;

Mr. Ekow Aedzie, Deputy Managing Director: GhanaStock Exchange;

Mr. Oscar Onyema, Chie Executive: The Nigerian StockExchange

2.The name o the Association is Arican Securities ExchangesAssociation (ASEA).

3.When was the association created?The Arican Securities Exchanges Association (ASEA) wasregistered in Nairobi on 13th November 1993 with the objecto, inter alia, establishing an association or systematic mutualcooperation, exchange o inormation, materials and persons,

mutual assistance and joint programs between the members.The membership o the association is open to any StockExchange or nascent Stock Exchange located in the Aricanregion. The Association has been holding annual conerences,which are hosted by dierent members each year where issuesrelevant to the growth o the regional capital markets areaddressed.

4.Where is the secretariat located?ASEA SecretariatNairobi Securities ExchangeNation Centre, First Floor, Kimathi Street,PO Box 43633, Nairobi 00100,Tel: +254 20 2831000

Fax: +254 20 224200www.aricansea.org

5.What is the main role o the association?1. To establish an association or systematic mutual

cooperation, exchange o inormation, materials andpersons, mutual assistance and joint programmesbetween the members;

2. To promote the establishment o securities exchanges inall Arican countries;

3. To promote the development o common standardso training and proessionalism among members o theAssociation and other market players;

4. To promote common standards o issuing, listing, tradingand settlement o securities;

5. To acilitate the development and promotion o productsand services or Aricas capital markets;

6. To assist members in the promotion and development othe range o services associated with the capital markets;

7. To develop and promote a data bank and inormationsystem or the mutual benet o members;

8. To study, and research on matters o mutual interest tomembers;

9. To disseminate inormation; produce materials in allmedia, hold conerences, seminars and exhibitions, andconduct other public education activities relevant to theinterests o members;

10. To ensure that the views and interests o the Associationare promoted in the appropriate worldwide ora;

6.Members o the AssociationFull Members

1. Bolsa de Valores de Cabo Verde

2. Bolsa de Valores de Moambique3. Botswana Stock Exchange4. Bourse de Casablanca5. Bourse de Tunis6. Bourse Rgionale des Valeurs Mobilires de lArique de

lOuest7. Dar-es-Salaam Stock Exchange8. Douala Stock Exchange9. The Egyptian Exchange10. Ghana Stock Exchange11. JSE Ltd12. Khartoum Stock Exchange13. Libyan Stock Market14. Lusaka Stock Exchange

15. Namibian Stock Exchange16. Nairobi Securities Exchange17. Nigerian Stock Exchange18. Malawi Stock Exchange19. Uganda Securities Exchange20. Sierra Leone Stock Exchange21. Stock Exchange o Mauritius22. Zimbabwe Stock Exchange23. Rwanda Stock Exchange

Observer Member1.Central Securities Clearing System Ltd. (Nigeria)

Aliate Member1.South Asian Federation o Exchanges (SAFE)

ASEA Brief


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7.Upcoming ConerencesThe sixteenth (16th) ASEA Annual GeneralMeeting and Conerence will be hosted bythe Egyptian Exchange in Cairo, Egypt on2nd 4th December 2012. The theme o theconerence is Unleashing Aricas InvestmentPotential- what could be done by AricanCapital Markets?.

2012 Strategic Initiatives of the AssociationFTSE ASEA Pan African IndicesThe Annual General Meeting received apresentation rom FTSE International on theproposed FTSE ASEA Pan Arican Index whichwill measure the perormance o eligibleequity securities on ASEA member exchanges.The Annual General Meeting endorsedthe design which is based on FTSEs globalbenchmark index design principles whichare rules based, transparent, comprehensive,and representative and incorporate stronggovernance. The Indices will increase thevisibility o Arican markets by tracking the

perormance o these markets and acilitatethe development o new products such asETFs which can also be listed on the ASEAmember Exchanges. ASEA and FTSE shall belaunching the index on December 3rd 2012 inCairo, Egypt.

The African Development BankThe Annual General Meeting authorized theASEA President to continue discussions withthe Arican Development Bank (ADB) on areaso cooperation between ASEA and the AricanDevelopment Bank. The President visited theArican Development Bank in Tunis and agreedon the ollowing priority areas;

1.The Bank is the largest investor in Aricanprivate equity unds. It is also a key supportero the Arican Venture Capital Association,which is the private equity und tradeassociation. The Bank can leverage itsposition as an important investor in privateequity unds to encourage these unds to exittheir investments via listings on Arican StockExchanges.

2.The Banks pension und is looking to

expand the range o asset classes in which itinvests. By investing in Arican listed stocksand bonds, the pension und would help toexpand the number o investors and addliquidity to Arican markets.

3.The Bank is a major issuer o bonds on theinternational and local markets. By listing itsbonds on Arican securities exchanges, theBank would encourage market developmentand potentially open up new assets to Aricaninvestors.

4.The Bank is leading the Arican Financial

Markets Initiative (AFMI) that includesdeveloping an Arican bond index and anArican Bond Fund. The Bank could promotemarket development by listing the index andthe und on Arican exchanges as well as

encouraging Arican governments to also listthe underlying bonds in which AFMIs AricanBond Fund intends to invest.

5.Through the Arican Development Institute(EADI), the Bank provides capacity buildingand training. EADI and ASEA could worktogether to develop joint capacity buildingprograms ocusing on capital market themes.

6.ASEA is looking at a number o market modelsthat can lead to a closer integration o existingnational Exchanges with a view to broadeningand deepening these national Exchanges. Inthis connection, the implementation o ahub and spoke interconnectivity projectcould ensure the cross-linking o Aricanstock Exchanges through technology.However, the implementation o this projectrequires the availability o nancial resourcesand the Bank would help ASEA identiyresources rom trust unds and other sourcesto implement this initiative.

ASEA Rules

The Annual General Meeting on December 11,2011 discussed the proposals on new ASEARules to accommodate the ollowing:-

Filling o casual vacancies on the ExecutiveCommittee;

The procedure or removal and automaticdisqualication o the representative o aMember at the Executive Committee;

The acceptable seniority o both therepresentative and alternate o a Member atthe Member organization;

Broadening the membership o ASEA toinclude organizations in the nancial servicessector, with whom collaboration will urtherthe objectives o ASEA.

The Rules will be presented to the Members orapproval during the Annual General Meetingo December 2nd 2012.


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The stock exchange started trading with

one company listed (Rokel CommercialBank) on its ocial list, and two brokeragerms (First Discount House and CapitalDiscount House) acting as agents ortrading in securities. The Exchange wascommissioned by the President o theRepublic o Sierra Leone

Trading Hours & No o trading per

week:Trading on the oor o the exchangecommences at 10 am and closes at 12 pmMondays and Thursdays.

How many sta do you have?Currently the exchange has ve permanentsta and three interns but looking to recruitthree more additional sta to strengthenits human resource structure. The internsare students rom the University o SierraLeone wanting to gain practical experiencein their areas o studies.

What are your achievements so ar? The exchange has signed a partnership

contract with Bloomberg to host its

market data with the view o gainingglobal recognition.

The exchange is now a member othe Arican Securities ExchangesAssociation

Through persistent lobbying andcampaign, the government has agreedto disinvest its 51% stake in RokelCommercial Bank. These shares will beofoaded through the stock exchange.

The Local Content Policy bill haspassed through cabinet. The completeenactment o this bill will deepenthe capital market and subsequently

improve activities in the stock market.

What challenges are you acing?1. The stock exchange is aced withsome constraints limiting its possibilities.For instance, the exchange is in urgentneed o Capacity Building which can beadministered in the ollowing capacities:

Structural Capacity Financial Capacity Human Resource Capacity Technical Capacity

2. The slow pace o the government

privatisation process is putting pressure on

the capital market development.3. The local content policy has not beenenacted yet in Parliament. This is a majoractor that will underpin the growth o thecapital market

Where do you see the SLSE in ve

years?Looking at the macroeconomic outlooko Sierra Leone, there are various growthprospects the exchange can capitalizeon, or instance, both the mining andagricultural industries are showing positive

indications. Once the local content policybill is in ull operation, most i not all thecompanies operating in these industrieswill be listed on the exchange, thusimproving the nancial position o theexchange going orward

Why did decide to join ASEA?Being a member o ASEA will enable theexchange integrate with other exchangesin the Sub Region and subsequentlydevelop its operations. Furthermore, it willcreate a platorm or global growth and

recognition.

Interview with Mr Gibrilla Sesay Acting Chie Executive Ofcer Sierra Leone Stock Exchange

Sierra LeoneNew Member

When was the SLSE

formed? Brief

Background

The Sierra Leone

Stock Exchange was

commissioned on

17th July 2009 to

provide a venue or

enterprise ormation

and a market place

or trading o Equities,

Commodities, Bonds,

Forex and Derivatives

Contacts

Sierra Leone Stock Exchange

Bank o Sierra Leone Main Building,

30 Siaka Stevens Street,

Freetown, Sierra Leone.

E-mail: [email protected]


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8 I 2012IIssue 1ASEA

Interview

withOscar Onyema

Director General and Chie Executive, Nigerian Stock Exchange


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1)You have been at the helm o the

Nigerian Stock Exchange or one year

now, has it been exciting? Please tell

us what leaps the Exchange has made.I joined the Nigerian Stock Exchange onApril 4, 2011 and it has been a rewardingand exciting experience, so ar. Over thepast year, the Exchange has made greatstrides in its commitment to providinga rst rate capital market experienceand to improving its service excellence.We have undertaken major reviews oour market and operations with a viewto implementing innovations requiredto deliver a robust and ecient capitalmarket.The NSE identied and successullydelivered on eight strategic initiatives to

create an Arican institution that competeseectively in the global marketplace.These initiatives were aimed at developinga more transparent, liquid and accessiblemarket with a modern market structureto support delivery o a wider range oinvestment products. By articulating andimplementing these initiatives, as well asengaging investors, our listed companies,market operators, the regulator andprospective issuers who had lost aith inthe capital market, we are enabling thereturn o a vibrant market.

2)The Exchange organizes Chie

Executive Quarterly dinners, what

does this involve?We have ten initiatives we have beendriving this year. The CEO QuarterlyDinners are part o our Advocacy initiative.They are hosted by the Nigerian StockExchange and are specically designedor listed companies and prospectiveissuers. Our aim is to ensure that all ourlisted companies realize the value o listingon the exchange, and orums such as this

are indeed key in that eort.These dinnersare ocused around industry segments,providing an opportunity or issuersand government agencies to interactaround issues that aect particular sectorgroupings.They provide a platorm toexplore issues and discusskey concernsthat can positively aect economic growth.

3.What are the most exciting new

prospects or the Nigerian Stock

Exchange?Some o the most exciting prospects or

the NSE are tied to our ongoing eortsto develop product liquidity and depth,continued enhancement o our regulatoryprograms, stakeholder engagement and

nancial literacy. Our ocus has been oncleansing, restructuring and making themarket more accessible and ecient, theright strategy or laying the oundationor the growth o the Nigerian capital

market. The capital market remains anindispensable vehicle to ensure Nigeriascontinued development and it providesa vehicle or long-term saving andborrowing, and hence, ecient use onancial resources. In terms o globalexchange trends, the cycle in which wehave been or the last ew years presentsan incredible opportunity or investors. Asthe reorms continue, we remain condentthat the market will soon be well on its wayto recovering its vibrancy.

4)Currently, what initiatives is theNigerian Stock Exchange involved in?Our 2011 transormation kicked o withthe reconstitution o our Board committeestructure and the establishment osix Board committees to guide themanagement o the Exchange, leading toenhanced corporate governance o thebourse.

We also implemented a Zero Tolerancepolicy aimed at ridding the market oregulatory inractions. An in-houseInvestigation Panel was reconstitutedand seven new violations introducedor broker-dealers. Issuer rules were alsorevised, and stier penalties assigned totwo major violations. The result is a highercompliance rate across the board.

A Market Segmentation exercise wascompleted to rebrand our markets andboards, and align industry sectors underwhich companies are listed (ormerly33) with Nigerian economic sectors andinternational industry classications; and toaddress market depth, the NSE introduced

a series o new products, including ourrst ETF and Shariah-compliant index orIslamic investors.

To enhance the investor experience, a newWebsite, with a real-time live eed to aticker, was launched in January, alongsideX-Net, a virtual private network (VPN), toenhance connectivity (20x aster) to theExchanges trading systems.The NSE recorded another milestone withthe announcement o ten market makersapproved to conduct market makingactivities which kicked o in September

this is accompanied by securities lendingand short selling.For the rst time in our history, we rampedup business development eorts to attract

Interview

Interview with

Oscar Onyema

Mr Oscar Onyema

Director General and Chie Executive



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and retain top quality companies, includingrevising our listing rules, deployingsystematic sector-board- and product-specic marketing strategies, and we aregearing up to launch more value-added

services or issuers, to address specicconcerns hindering market growth.

Finally, the NSE is on its way to becomingully IFRS compliant and our initiativesare centered on technology and productdevelopment. We are overhauling oursystems, technology-based solutionsand data services, as well as advocatingchanges to policy, with the aim otransorming the Nigerian market into thegateway to Arican capital markets.

5)What are your views on integrationo Arican stock exchanges?Integration o exchanges is not a newconcept. It has been done successully indierent parts o the world. When peopletalk about integration, the one examplethat always comes to light is the Nordicexchanges, but there are also the Balticexchanges, MILA (the Integrated LatinAmerican Market) and the ASEAN tradinglink. While their models are similar, youalso have integration via mergers and thesingle market/ regional operator model.Arican stock exchanges struggle withliquidity and depth, challenges that canpossibly be addressed by integration.While the conversation has been ongoingor many years now, it is still unclear howand to what extent integration might occurin our region. From a simple considerationlike dierent time zones to a more complexconsideration like currency conversion,more work needs to be done to determinethe right model. The right model willhinge on the ability o each jurisdictionto acilitate (and implement) requisitechanges to policy and regulation, two key

ingredients o successul integration.

6)How is the Nigerian Stock Exchange

positioning itsel to take advantage o

the renewed interest in Aricas stock

markets?The initiatives the Nigerian Stock Exchangehas embarked upon are critical to ensuringinterest in our capital market. By providinga rst rate capital market experience andimproving service excellence, as well asby implementing innovations required to

deliver a robust and ecient capital market,only then can we compete eectively inthe global marketplace. As I mentioned,our initiatives are aimed at developing amore transparent, liquid and accessible

market with a modern structure to supportdelivery o a wider range o investmentproducts which is what investors aroundthe world are looking or. We are on track,and we remain committed to achieving

the objective.

7)Where do you see Aricas Stock

Exchanges in the next ve years?The Economist Intelligence Unit o theEconomist Group conducted an outwardlooking (2025) survey which captured theollowing:The legal and regulatory environment

o emerging markets as the mostlikely challenge to derail companiesrom developed countries looking toemerging stock exchanges or their

IPOs (32%); An uncertain regulatory environment

as the main concern with choosingto list on an emerging market stockexchange (56%);

Liquidity/turnover velocity as the mostimportant actor when choosing a stockexchange/market or an IPO (62%);

Stock exchanges in developed marketswill have to work harder to attractcompanies rom emerging markets tolist (76%); and

Stock exchanges in developed marketsthat underestimate the competitionrom emerging market exchanges willlose market share to them (76%).

This insight, along with the trends weare seeing in the Nigerian market, leadsme to believe that Arican market are ontheir way to experiencing a new kind ogrowth. As the BRICs struggle to maintainthe level o growth they have experiencedin the last ew years, this provides anopportunity or the emerging markets,especially the Arican capital markets. Witha strong regulatory environment, diverse

investment products, liquidity and a highlevel o service and excellence, we will beable to compete eectively with otherglobal markets. This is our time, and weshould embrace it.

Interview with

Oscar Onyema

Interview


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Competition is a act o corporate lie. Companies compete or customers, talent andresources everyday with each group having its own careully crated plan. These plansensure that revenue enhancing growth strategies are adequately resourced, supportedby an appropriate and optimal organizational structure and their success is closely and

requently monitored.

Yet, there is another type o competition, which is oten overlooked. This is the competitionor capital and, i not properly addressed, can jeopardize all eorts to create value.

Winning investors over should thereore be a strategic goal, as equally important asincreasing prots or gaining market share.With Arica ast gaining momentum as the next investment rontier, this is the opportunityor Arican companies to raise their prole in the global investment community andattract the capital they need to und their growth or to achieve a air valuation. Set outbelow is a ew guidelines on how to achieve this.

From disclosure requirements to Investor RelationsMore oten than not, Investor Relations is restricted to complying with listing requirements.

However, Investor Relations actually matters to a much broader group o audiences. Table1 depicts these groups.

Each constituency will be interested in a wide range o topics that will, more oten thannot, go beyond the companys nancial statements. To this end, there is a lot more toInvestor Relations than only numbers.Stemming rom this, it is thereore the strategic responsibility o Investor Relations to:

Establish and maintain trust Retain existing shareholders Motivate and inspire stakeholders, not only shareholders Win over new targets Communicate the companys brand Contribute to building corporate reputation Achieve a air valuation and lowering the cost o capital.

Lowering the cost o capital by creating a competitive advantage

Research has proved that in the short term stock markets are irrational and rarely reectundamentals . This could easily convince management teams that Investor Relationsbeyond regulatory compliance has very little impact. However, the same research hasproved that markets are ecient in the long run1. Moreover, the nancial market crisis

Maximizing Value

through Strategic

Investor Relations

Anne Guimard President FINEO

Individual shareholdersInstitutional shareholdersPortolio managersBuy-side analystsEmployee shareholdersBond holders

Stock market authoritiesBankersBrokerssell-side analystsales orcessales tradingproprietary tradingIndependent research analystsRating agencies (credit, socially

responsible investment, corporategovernance)

General pressFinancial and economic press

Trade press

Customers and competitorsSuppliersLocal communities

Trade associationsEmployeesEtc.

Journalists Other stakeholders

Shareholders and Bond Holders Capital markets professionals


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Anne Guimard is A Certied Financial Analyst, Anne Guimard also holds a PhD in international nance. With over 15 years o

experience as a Chie Investor Relations Ocer at multi-listed groups and as nancial analyst in equity research and Mergers &

Acquisitions at leading investments banks, she decided to become an entrepreneur: she ounded FINEO in 1999 to ofer companies

the independent, high value-added advice they need to efectively compete or capital. One o FINEOs key diferentiators is that it has

always put training and international best practices at the heart o its IR strategy consulting practice. This is urther evidenced with the

creation o The School o Investor Relations, a uniquely innovative training portal. To this day, FINEO has advised or trained in Investor

Relations best practices more than 1,300 companies in 60 countries. The rm has oces in London, Paris and Johannesburg.

Author o several books on Investor Relations, Anne Guimard serves onthe Board o Directors o the National Investor Relations

Institute in the U.S.A., the largest Investor Relations proessionals organization in the world, and is a member o the Investor Relations

Society in the United Kingdom. www.neo.com

has increased investor demand or transparency and a more candid approach to communication. Understanding this will elevate InvestorRelations rom a necessary evil to a competitive advantage.

Whether your company is considering a listing or is already listed, a well crated Investor Relations strategy can help: Take advantage o sector valuation discrepancies between geographies Diversiy your shareholder base Establish your reputation through transparency and corporate governance Create and raise brand awareness or your products and services Appeal to new customers Identiy potential suppliers and service providers Attract high potential executives Lower the cost o capital through increased liquidity and improved valuation.

There is ample academic research and empirical evidence that the Return on Investment (R.O.I.) in Investor Relations can be measured.According to Rivel Research, portolio managers and buy-side analysts attribute a premium o 10% o a companys valuation to good investorcommunications and a discount o 15% to bad investor communications. Similarly, a recent analysis by Thomson Reuters Extel indicated thatthe stock prices o companies, which are highly regarded or Investor Relations, tend to outperorm the broader market. The analysis ound

that since 2007, the top 10 European Investor Relations Extel winners outperormed the Euro STOXX 600 by 28.8% on a total returns basis. Thisperormance has widened since 2008, as investors required better communication.

Rising to the challengeThese statistics underscore the strategic need or Investor Relations and should convince companies to step up their eorts and meet thechallenges o Investor Relations, namely: Mastering and conquering a new competitive environment Regulatory compliance Striking the balance between the short-term expectations o nancial markets and the companys long-term value proposition Maintaining and increasing investor demand or your companys securities Meeting signicant demands and high expectations rom new clients (e.g. nancial analysts, institutional investors, retail shareholders,

journalists).This can be achieved by strategically positioning Investor Relations as part o the executive team (the C-Suite) and ensuring:

Proessional and cost-eective Investor Relations inrastructure A bridge between the company, its management and the nancial markets.

In conclusion, it is a misconception that the quality o an Investor Relations programme is contingent upon a companys size and their nancialresources. On the contrary, these should matter least, especially in todays digital age when inormation is available at the click o a button.What matters more is that the Board o Directors and the management team buy into corporate governance, transparency, accountabilityand communication.

Finally, although the actors behind share price per ormance are varied and complex, the quality o Investor Relations can be a real competitiveadvantage. The market rewards eective communication, visibility and transparency in the long run. To this end, companies who choose torelegate Investor Relations to regulatory compliance do so at their peril.


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Member

Exchanges

Botswana Stock Exchange

Bolsa de Valores de Cabo Verde

Bourse Regionale des Valeurs Mobilieres

Bourse de Tunis

Bourse de Casablanca

Dar es Salaam Stock Exchange

Douala Stock Exchange

Egyptian Exchange

Ghana Stock Exchange

Johannesburg Stock Exchange

Khartoum Stock Exchange

Rwanda Stock Exchange

Libyan Stock Market

Lusaka Stock Exchange

Malawi Stock Exchange

Nairobi Securities Exchange

Sierra Leone Stock Exchange


Stock Exchange of Mauritius

Mozambique Stock Exchange

Namibian Stock Exchange

Uganda Securities Exchange

Zimbabwe Stock Exchange


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Member

ExchangeNews


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Casablanca

6 bond issues were conducted by :

17th January: FondsdEquipement Communal (FEC).the total amount o the issue waso 1 000 000 000 MAD

18th January: IMMOLOG, thetotal amount o the issue was o700 000 000 MAD

25th January: LABEL VIE, the totalamount o the issue was o 400000 000 MAD

19th March: UNIMER, the totalamount o the issue was o 350000 000 MAD

3rd May: Crdit Immobilier et

Htelier (CIH), the total amounto the issue was o 1 000 000 000MAD

Rsidences Dar Saada, le25/06/2012, the total amount othe issue was o 750 000 000 MAD

2 capital raising operations :

11th June: Banque CentralePopulaire (BCP), the total amounto the issue was o 1,6 billion MAD

20th May Attijariwaa Bank, the

total amount o the issue was o1,9 billion MAD

22 February: Conerence in partnershipwith the British Chamber o Commerce,under the theme Financial ServicesPartnership Day. A cooperationagreement between the City o Londonand Casablanca Finance City was signedduring this event.

7th May: Conerence in partnershipwith the APSB (Proessional Associationo Brokerage Firms) at the Hotel RoyalMansour. The conerence was entitled

Review o companies listed on theCasablanca Stock Exchange: Beyond the2011 results, 2012 outlook & challenges

Key Facts

IPO o Arique Industrieson the 5th January

2012 through the sale

o 110 770 shares. The

total amout o the

operation was o 26

584 800 MAD with an

issue price o 240 MAD.

This conerence allowed all marketproessionals to provide investors with

an analysis o the results released bylisted companies, and enable themrom understanding the elements to betaken into consideration when makingan investment decision. It was also anopportunity to identiy investmentopportunities in the stock market or 2012.

20th June: conerence in partnership withthe Ministry o Economy and Finance andMoroccan Financial Board (CasablancaFinance City) at the headquarters othe Casablanca Stock Exchange. Theconerence was under the themeRevival o the Stock Exchange and theDevelopment o Capital Markets .The event, chaired by the Minister oEconomy and Finance, Mr. Nizar Baraka,brought together a panel o speakers andguests representing the stakeholders o allthe Moroccan nancial sector.Conclusion o a partnership agreementwith the AL Muscat Stock Exchange in Apri l2012 and the Istanbul Stock Exchange inJune 2012.

These agreements involve experiencesharing on training and inormationbetween the two exchanges. These

partnerships conrm the aspiration o theCasablanca Stock Exchange to strengthenits cooperation with Arab and internationalexchanges in order to develop andpromote the Moroccan nancial market.


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ater a US$ 35 billion decline in the previous year. Note worthy, oreigners accounted or21.8% o the total value traded (ater excluding deals) during the rst hal o 2012.

In addition, the two most active sectors were the Telecommunications sector and theFinancial services excluding Banks sector recording the highest volumes traded within

the rst 6 month o 2012. The Telecommunications sector recorded a volume o 4.70billion shares worth US$ 5.16 billion. Meanwhile the Financial Services excluding Bankssector recorded 2.73 billion shares worth US$ 1.25 billion.Worth mentioning, that Nilex trading system has been amended to match that o thenew system in order to increase NILEX attractiveness as a viable source o unding orSMEs and to increase market activity. Post the amendments the average daily valuetraded surged rom US$ 108 thousand to US$ 143 thousand, a promising sign or Nilexuture activity.

Market Developments in 2012: A separate trading mechanism (block trading) was introduced or executing large

volume deals to activate and acilitate trading, especially or enterprises and toachieve higher probabilities o executing the entire quantity required. The newtrading mechanism contributes to increasing the execution speed, reducing thetrading costs and increase trading volumes which will positively reect on themarket eciency.

EGX launched its FIX HUB project this month through linking to FIDESSA tradingnetwork. The FIX HUB network will enable international investors to trade Egyptiansecurities easily through a FIX gateway which will reect positively on the Egyptianmarket liquidity without violating capital market rules.

The Egyptian Exchange (EGX) launched the live operation o the new automatedsurveillance trading system rom MillenniumIT, a member o London StockExchange Group (LSEG).

EGX commits to promote sustainable investment, signing an agreement withNASDAQ (United States) and the Brazilian, Istanbul, and Johannesburg stockexchanges to become the ounding signatories to the Sustainable Stock Exchanges(SSE) Initiative.

Ater a period o uncertainty witnessedduring 2011, in Egypt and the Arab world,2012 came with more concrete and clearpicture or the new democratic phase inthe Egyptian history. Ater which investorsoresee a more stable a conducive market

or investment.More assured o a better investment andcorruption ree economy, the marketindices surged during the rst 6 montho 2012, occupying the rst place amongdeveloped and emerging marketsaccording to Morgan Stanley. EGX 30 indexto stand 30% higher during the rst hal o2012, a remarkable perormance, so ar thisyear. Likewise, EGX 100 and EGX 70 indicessurged by 13.4% and 1.5%, respectively,year to date. Worth mentioning, the BasicResources Sector index, Real Estate Sectorindex and Telecommunications Sectorindex skyrocketed recording 66.4%, 51.8%and 39.9%, respectively, pushing themarket indices upward.

Moreover, all trading gures have surgedduring the rst hal o 2012 compared tothe second hal o 2011, as illustrated inthe table below. The trading value inchedup, with an average daily value traded oUS$ 93 million or the main market (aterexcluding deals) vs. US$ 64 million in thesecond hal o 2011. Moreover, the averagedaily volume nearly doubled, recording

110 million shares daily vs. 63 millionshares. Also, market capitalization surgedby 15% since the beginning o the yearrecording US$ 56 billion as o end o June2012; a US$ 7 billion increase since last year

Moving hal way past

2012, the marketentered into a decisive

new phase in the

history o Egypt.

Tuning in or the long

awaited results o the

rst ree presidential

elections, the marketshowed a remarkable

perormance post the

elections.

Egypt

Indicators Jul Dec 2011 Jan Jun 2012

Total Volume Traded (million) 8,536.40 13,766.27

Main Market 7,911.21 13,244.11

Nilex 18.99 26.25

OTC Market 606.20 495.91

Total Value Traded (US$ million) 10,019.39 15,370.17

Main Market 8,432.50 14,364.50

Nilex 12.82 17.28

OTC Market 1,574.06 988.38

Total Number o Transactions (thousand) 2,497.50 2,900.35

Main Market 2,459.60 2,864.66

Nilex 6.46 13.00

OTC Market 31.45 22.70

Average daily Value Traded (US$ million) 77.22 101.01

Main Market* 63.99 92.69

Nilex 0.11 0.14OTC Market 13.12 8.17

No. o Trading Days 120 121

Market Capitalization (US$ million)

Main Market 48,677.02 56,076.59

Nilex 167.41 180.39

Number o Listed Companies

Main Market 213 212

Nilex 19 21


18/51


The day also marks the moving o theplatorm rom London, where the tradingengine has been situated or ten years,to the JSE building in Johannesburg.These changes are aimed at enhancing

operational eciencies or marketparticipants, who are expected to benetrom executing transactions almost 400times aster than the present tradingsolution.

The platorm is housed within the JSEsrecently completed new state o the artdata centre based on Tier 3 specicationsand is designed to ensure 99.98%availability.

The seamless migration rom the previousTradElect platorm ollows Borsa Italianas

identical switch last week. As with the JSE,this move was successul and ollowedextensive testing and consultation withstakeholders.

JSEs new Equity

Trading Platorm in SAater Decade in London

Move marks new era

or exchange

Johannesburg 2

July 2012 The

Johannesburg Stock

Exchange (JSE)celebrates the start

o a new era or its

equity market today

with the launch

o equity trading

platorm Millennium

Exchange, developed

by technology solutionsprovider MillenniumIT.

Leanne Parsons, Director o the JSEs EquityMarket, comments: As we have seen with

the Borsa Italiana migration last week andsimilar migrations during the past year, thenew platorm provides exceptional levelso perormance, unctionality and capacity.The JSEs move to the new equity system,which we have nicknamed Project Jayameaning victory in the language o SriLanka, is a victory or the market.

The move could not have happenedwithout eective cooperation betweenthe exchange and all its clients, saysParsons. We would like to extend oursincere appreciation and thanks to all our

clients or their eorts and support.Parsons says that the adoption oMillennium Exchange could have asignicant impact on trading volumesby attracting a greater share o highrequency trading when collocation andthe appropriate billing models are in place.

Trading volumes increased signicantlywhen the JSE adopted trading platormJSE SETS in 2002, and climbed againwhen the exchange moved to the presenttrading platorm JSE TradElect in 2007. JSETradElect was licensed rom the London

Stock Exchange and maintained andoperated by the London bourse. There isanecdotal evidence to suggest that whenexchanges increase their trading speedsthey also boost levels o trading. This isimportant in order to deepen a market,adds Parsons.

Parsons explains that one reason or thedecision to relocate the trading engineto Johannesburg was the increasedoperational stability that this move wouldoer. The handul o incidents that wehave had requiring the equity market

to be halted, have been related to ourinternational connectivity links. Clearlythese have had reputational impacts. Bymoving the engine to Johannesburg, weeliminate this problem and are able to oerour clients improved service availabilityand stability.MillenniumIT, which has over a decadeo experience in building technologysolutions or the capital markets, is awholly-owned subsidiary o the LondonStock Exchange Group (LSEG) and isbased in Sri Lanka. Millennium Exchangeis the companys agship product with14 installations live worldwide (excludingthe JSE) and is known or its speed andscalability.We are very pleased that Millennium

Exchange is now live at JSE, South Aricasonly ull service securities exchange.

Millennium Exchange is a highly exibleand scalable next generation tradingplatorm that oers ultra-ast orderprocessing capabilities. This will enableJSE to increase its trading volumes at lowcost and provide its customers with anunbeatable trading experience in termso speed, eciency and technology,comments Tony Weeresinghe, CEO oMillenniumIT and Director o GlobalDevelopment at the LSEG.

Speed is becoming increasingly importantin the exchange industry as exchanges

cope with the rapid rise o automatedtrading. Those exchanges that have tradingsystems with the lowest latency thetime between when an order is received,processed and acknowledgement sent will retain and grow market share.In uture, the JSE will manage and operatethe trading engine itsel. This allows theJSE to grow trading volumes and containtrading sotware costs.Note to EditorsThe move o the trading system toJohannesburg has been welcomed by

market participants.The Millennium IT system is the wayorward and puts SA on par globally withmultiple other markets. It will not only beaster but given the broader global userbase it should be easier to support andor new users to integrate it into theirplatorms. The JSE handled the migrationwell, with no deadlines being missed itis the 2nd o July today and we are goinglive, says John Slettevold, Head o Equities,UBS South Arica.

The migration was handled proessionally

with all rms participating in the testingphases over the last ew months toensure that the system delivers as wellas integration into downstream internalsystems, says Ashvin Mancha, CEO oAriocus.

It was really an important step to bringthe trading engine back to South Aricaas it allows us to have control o ourown trading engines and the system willbe much aster. Location and speed iseverything and we could only but benetby having it right here, says Erica Bruce,Director o Navigare.

JSE


19/51


Market capitalization grew rom39,540,139 million at the end o2011:H1to K46, 438,742 million at theend o the 2012:H1.

Volumes have increased to 760,106,827in 2012:H1rom 700,048,233in 2011:H1.The 1st Quarter volumes weremainlyattributable to Investrust and StandardChartered who attributed to 85% o theshare trade o these months volumes.

Market liquidity (Turnover) has decreasedrom K608, 535,666,650 (2011:H1) to K235,026, 231,715 (2012:H1).

The index closed at 3,876.42 points (a 4%drop in that 6 months period) in 2012:H1.This compared to the 2011:H1whichclosed at 3,918.66, was a drop in rom

INDICATOR 2012: H1 2011:H1

Lusaka All-share index 3,876.42 3,918.66

Market Index Growth (%) -4% 19%

Market Capitalization (K Millions) 43,265,581 39,540,139

Market Trade Volume 760,106,827 700,048,233

Market Trades Transactions 2726 3699

Market Trade Turnover (K) 235,026,231,715 608,535,666,650

Government Bond Sales (K ) 776,734,373,577 192,275,480,880

Net Inow (US$) -4,642,920.01 13,291,847

Turnover / GDP Ratio 0.01% 0.72%

Turnover / Market Cap Ratio 46.03% 61.47%

Daily average volume 6,129,893.77 5,691,449.05

Daily average turnover Kw 1,895,372,836.41 4,947,444,444.31

Daily average no o trade21.98

30.07Foreign Activity: Trades (Quantity) 226 338

Foreign Activity: Trades (%) 8.29% 9.14%

Foreign Activity: Volume (Quantity) 40,645,228 99,125,026

Foreign Activity: Volume (%) 5.35% 14.16%

Foreign Activity: Turnover (K ) 47,670,335,408 60,669,758,131

Foreign Activity: Turnover (%) 20.28% 9.97%

Domestic Activity: Trades (Quantity) 2,500 3,363

Domestic Activity: Trades (%) 91.71% 90.92%

Domestic Activity: Volume (Quantity) 719,461,600 600,923,208

Domestic Activity: Volume (%) 94.65% 85.84%

Domestic Activity: Turnover (Quantity) 187,355,896,309 548,865,908,520

Domestic Activity: Turnover (%) 79.72% 90.19%

Lusaka

MARKET PERFORMANCE

SUMMARY

The ollowing section represents

the stock market perormance

statistics or the Lusaka stock

Exchange during the periods o

2012:H1 (1st January 2012 to

30th June 2012) and 2011:H1 (1st

January 2011 to 30th June 2011).

the previous period. The 4% drop in theall share index or the period 2012:H1was mainly driven by Arican ExplosiveLimited Zambia (-14.88%), InvestrustBank Plc. (-15%), Zambia sugar (-15.21%)and Cavmont Capital Holdings (-20%).Zanaco and Standard chartered Zambiaexperienced share price drops o 87.78%and 96.89% respectively. However thesedrops were mainly due to bonus issuessplits in the stocks rather than collapsing

o the share prices. Net capital inows were negative or

2012:H1were at US$ (-4,642,920.01)and this was drop rom the positivenet capital inows o 2011:H1at US$13,291,847.

Foreign percentage (%) o volumes haddropped rom 14.16% during 2011:H1to5.35% during 2012:H1.

Second hand GRZ bond turnoversincreased rom K 192,275,480,880,during 2011:H1, to K 776,734,373,577,during 2012:H1.

Major Market DevelopmentsThe Major Development within the rst halo2012were:

Farmers house plc changed its name toReal Estates Investments Zambia (RIEZ)

Real Estate Investments Zambia concludeda merger with Arcades Plc Zambia in acash and shares transaction. RIEZ acquired8,100,000 shares (100%) o Arcades Plc andissued 13,714,286 new REIZ shares to theArcades shareholders.

Zanaco complete $20 millionrecapitalization using a bonus issue,splitting 2 shares into 13.

Standard chartered bank completerecapitalization to reach Bank o Zambiaminimum capital requirement by splitting1 share into 27.

Madison Financial Services quote on theLusaka Stock Exchange.

Investrust Bank Plc. announces bonusissue and rights oer to raise capital to $20million.

C. Market Development Strategies o

the LuSEGoing into the second quarter and the LuSEhas engaged in the ollowing strategies todevelop the Zambian capital market.

Public AwarenessThe Lusaka stock exchange is producinga television program aimed at publicsensitization to the LuSE and marketinormation dissemination to be broadcastedon ZNBC every Sunday at 16:00.Simultaneously the LuSE has also released aortnightly stock market education article in

The Post Zambia.LuSE has also developed a relationship withCNBC Arica.

Educational InstitutionalEngagement:The High school Investment GameFollowing the outreach program or schools,the LuSE has planned or the Annual SchoolChallenge that will enable the youth tointeract with the stock market in a simulatedenvironment in the continued eort toexpose them to experience the investmentmarket rom a younger age.

The Educational Tours:The LuSE is still running educational tours orstudents o various schools, allowing themto get rst hand interaction with the stockmarket.

International RelationsIn 2012 CEO o the stock exchange, MrsBeatrice Nkanza was appoint the chair persono Committee o SADC Stock Exchangesand in her term as chair she has alreadybegan proceedings to increase the businessrelationships between the SADC stockexchanges interms o procedures and inter-

market eciency.


20/51


Malawi

Index Levels and Return Hal Yearly 2012

Trading Statistics Hal Yearly 2012

MARKET PERFORMANCETrade Perormance Analysis

From 1st January to 30th June, 2012 a total o 376,120,556 shares were transacted ata total consideration o MK1,917,913,350.75 (US$9,365,996.66) in 674 trades. In thecorresponding period 2011, the market transacted a total o 1,468,121,116 shares at atotal consideration o MK5,421,752,414.13 (US$35,953,309.76) in 831 trades. This reectsa -74.38% decrease in terms o share volume and a -64.63% (-73.95% in US Dollar terms)decrease in share value.Daily average share trades exhibited similar trends; the market registered an average dailyvolume o 6,066,461 shares compared to 23,679,373 shares traded in the correspondingperiod 2011.

The average daily turnover or the rst hal 2012 was MK30,934,086.30 (US$151,064.46)compared with MK87,447,619.58 (US$579,892.09) or the corresponding 2011, reectinga decrease o -64.63% (-73.95% in US Dollar terms)The month o June registered the highest in terms o both value MK793,384,952.00 andvolume o 274,445,980 but the month o March registered the highest in terms o value inUS$ terms o US$3,208,535.92.

TABLE 1: TRADING SUMMARY FOR 01st JANUARY 30th JUNE 2012

Market Capitalisation and Index

The market registered a positive return on index as reected in the upward movement oThe Malawi All Share Index (MASI) rom 5369.42 points registered in January to 5983.34points registered on 30th June 2012, giving a return on index o 11.43%, (0.04% in

US$ terms) compared to -0.82 %, (-0.01 in US$ terms) registered in the correspondingperiod 2011. The price gains registered by 8 counters (ILLOVO, NBM, NBS, NICO, NITL,PCL, STANDARDBANK and OML) were the major drivers in the upward movement o theMalawi All Share Index, arising rom an increase in both the Domestic Share Index

TRADING SUMMARY

The market registered apositive return on index

o 11.43 % higher than

the 0.83% registered

in the corresponding

period 2011. It however

recorded a drop in both

traded volume andvalue in the rst hal

2012 compared to the

corresponding period

2011. In US Dollar

terms, the Index shrunk

by 32.3% because o

the devaluation o the

Kwacha on 7th May,2012 by almost 49.0 %.

INDEX JAN, 2012 JUNE, 2012% YTD

2012

% YTD

2012(US$)

MASI 5369.42 5983.34 11.43 32.30

DSI 4238.39 4717.88 11.31 32.38

FSI 535.42 653.57 22.07 25.84

Traded Value (MK) 1,917,913,350.7 No. of Listed companies 14Traded Value (US$) 9,365,996.66 Traded Companies 13Traded Vol. Shares 376,120,556 Not Traded Companies 1

No. of Transactions 674 Gainers 8

Index Close (MASI) 5983.34 Decliners 2Index Close (DSI) 4717.88 Unchanged 4

% CHANGE -74.38 -73.95

January 7,216,236 210,161,869.30 1,266,614.97

February 1,023,473 19,019,089.30 113,376.39

March 58,146,783 531,582,238.90 3,208,535.92

April 9,682,564 203,970,433.90 1,228,318.11

May 25,605,520 159,794,767.35 667,625.13

June 274,445,980 793,384,952.00 2,881,526.14

1st Half 2012 376,120,556 1,917,913,350.75 9,365,996.66

1st Half 2011 1,468,121,116 5,421,752,414.13 35 953 309.76

DATE VOLUME VALUE (MWK) VALUE (US$)

-64.63


21/51


* Excludes non-Malawi register Old Mutual plc shares

HALF YEARLY 2012 -MARKET PERFORMANCE REPORT 5

FIG 1: MSE INDICES Half Yearly 2012

Market Liquidity

The turnover velocity measured by the ratio o Total Value oTrades to Market Capitalisation (TVT/MCAP*) in the period underreview was recorded at 1.5186%, lower than 5.2683% registeredin the corresponding 2011. The ratio o Total Value o Trades toGross Domestic Product (TVT/GDP) recorded a liquidity level o0.34557% in the review period while during the correspondingperiod o 2011 liquidity was at 1.67364 %.

Table 3: Market Liquidity Hal Yearly 2012

* Excludes non-Malawi register Old Mutual plc shares


2.4 Company Trading Performance

8 counters registered a capital gain during the review period.

2 Counters registered capital losses in period under review.


Top 5 Traded Stocks by Value

Company Trading Statistics- Half Yearly 2012

HALF YEARLY 2012 -MARKET PERFORMANCE REPORT 8ECONOMIC POSITIONThe Malawi Kwacha moved during the six months period rom1st January to 30th June 2012 as ollows: -

January 2,698,710.31 16,118.8052 230,322.42 1,375.6653 5369.42

February 2,750,073.08 16,355.6582 229,536.15 1,365.1328 5437.39

March 2,898,840.55 17,372.3702 239,239.51 1,433.7309 5667.12

April 2,476,429.95 16,421.8513 243,313.49 1,613.4751 5763.62

May 2,861,102.83 10,559.5233 245,530.97 906.1855 5886.82

June 2,782,481.06 10,096.0851 249,486.33 905.2476 5983.34

1st Half 2012 2,782,481.06 10,096.0851 249,486.33 905.2476 5983.34

1st Half 2011 2,395,156.18 15,883.0828 205,825.85 1,364.9001 4912.30l l i i l l l

Month

Ending

Mkt. Cap

Mkm.

Mkt. Cap

Mkm*Mkt. Cap

US$m.

Mkt. Cap

US$m*MASI

I I

0.00

1000.00

2000.00

3000.00

4000.00

5000.00

6000.00

7000.00

6-Jan-12 6-Feb-12 6-Mar-12 6-Apr-12 6-May-12 6-Jun-12

MASI

DSI

FSI

TVT/GDP

%

TVT/Mkt.

Cap* %

Shares

Traded/Shares

In Issue* %

January 250.44 21.374 0.01950 0.0912 0.041021

February 255.20 21.301 0.00176 0.0083 0.005818

March 269.01 22.201 0.04933 0.2222 0.330528

April 223.10 21.920 0.01838 0.0838 0.055039May 257.76 22.120 0.01440 0.0651 0.145551June 250.67 22.756 0.07148 0.3180 1.560052

1st Half 2012 250.67 22.756 0.34557 1.5186 4.276014

1st Half 2011 369.68 31.768 1.67364 5.2683 16.815496

Mkt. CAP/GDP

%

Mkt. CAP/GDP*

%

Month

Ended

Top Gainers

COUNTER NAMENBS NBS Bank 47.00

NICO NICO Holdings Limited 36.36

OML Old Mutual plc 22.07

ILLOVO Illovo Sugar Malawi Limited 15.38

STANDARDBANK Standard Bank 9.52

NITL National Investment Trust Ltd 9.38

NBM National Bank of Malawi 6.67

PCL Press Corporation Ltd 2.78

COUNTER NAMEMSE CODE % GAIN

Top Decliners

MPICO MPICO - 16.67

TNM TNM - 2.63

COUNTER NAMEMSE CODE % LOSS

Top 5 Traded Stocks by Volume

MPICO MPICO 277,643,898 73.82

TNM TNM 51,352,438 13.65

NBS NBS Bank 14,117,896 3.75

FMB FMB Bank 9,400,334 2.50

REAL Real Insurance 5,627,195 1.50

MSE

CODECOUNTER NAME SHARES % OF TOTAL

MSE

CODECOUNTER NAME MK % OF TOTAL

MPICO MPICO 694,960,191.15 36.24NBM National Bank of Malawi 359,397,737.00 18.74

ILLOVO Illovo Sugar Malawi Limited 223,618,994.00 11.66

NBS NBS Bank 164,289,045.30 8.57

PCL Press Corporation Ltd 153,598,221.00 8.01

I

I

I

I

I

i

i

i l ll i

i

BHL 700 700 0.00 1,000,000 0.27

7,000,000.00

FMB 700 700 0.00 9,400,334 2.50

66,516,335.50

ILLOVO 13000 15000 15.38 1,642,126 0.44

223,618,994.00

MPICO 300 250 -16.67 277,643,898 73.82

694,960,191.15

NBM 5250 5600 6.67 6,788,260 1.80

359,397,737.00

NBS 1000 1470 47.00 14,117,896 3.75

164,289,045.30

NICO 1100 1500 36.36 3,650,007 0.97

44,056,577.00

NITL 1600 1750 9.38 3,716,900 0.99

61,952,200.00

PCL 18000 18500 2.78 848,650 0.23

153,598,221.00

REAL 120 120 0.00 5,627,195 1.50 6,752,634.00

STD.BANK 10500 11500 9.52 308,573 0.08

33,267,789.00

SUNBIRD 700 700 0.00 0 0.00

-

TNM 190 185 -2.63 51,352,438 13.65

91,447,472.80

OML PLC 42600 52000 22.07 24,279 0.01

11,056,154.00

376,120,556 100.00

1,917,913,350.75

Company Opening

Price

% Price

Change

Share Vol.

TradedValue Traded

MK

%

TradedClosing

Price

Malawi


22/51


TABLE 2: EXCHANGE RATES: SECOND QUARTER 2012

The year on year headline ination stood at 20.1 % in June 2012.The urban and rural ination rates or the month o June, 2012were 24.2% and 17.6% respectively.

CURRENCY END JAN 2012 END JUN 2012 % CHANGEMK/US Dollar 167.4262 275.6000 -39.25MK/GBP 263.0265 437.8414 -39.93MK/ZAR 21.3537 35.6641 -40.13MK/EUR 220.0649 351.9437 -37.47

I

ll

ll

ll

Ination Rate 7.00 9.8 10.3 17.3 20.1

RBM Bank Rate 13.0 13.0 13.0 16.0 16.0Prime Rate 22.5 17.75 17.75 20.75 20.75

TB YIELD91 Days T-Bill 7.32 6.84 0.00 14.73 19.12

182 Days T-Bill 7.25 0.00 0.00 15.00 19.40364 Days T-Bill 0.00 0.00 0.00 11.16 22.96

KEY MACROECONOMIC INDICATORSJun. 2011 Dec. 2011 Jan. 2012 May. 2012 Jun. 2012

The Malawi Kwacha moved during

the six months period rom 1stJanuary to 30th June 2012

Malawi


23/51


Mauritius

The Stock Exchange o Mauritius (SEM) haswon or the second consecutive year the

Most Innovative Arican Stock Exchangeo the year Award at the InstitutionalInvestment Summit and Index SeriesAwards organised by Arica investor (Ai),a leading international research andcommunication group, in collaborationwith the New York Stock Exchange (NYSE)Euronext. The Award was presented to theSEM at the New York Stock Exchange on21st September 2012.

The Ai/NYSE Euronext Investment Summitis now rmly established as a calendarevent and platorm to prole Arican

Capital Markets opportunities to theinternational investment community. TheAi Index Series Awards aims at rewardingdierent categories o players within thecapital markets sphere, including stockexchanges, socially responsible companies,regulators, listed companies, investmentbanks, stockbroking companies, researchteams and und managers.

The Award in the Most Innovative AricanStock Exchange category was given onthe basis o a number o criteria, including,amongst others, initiatives implemented

by the Exchange to embrace new areaso development, programmes in placeto enhance the services it provides to itskey stakeholders and compliance o theExchanges regulatory and operational set-

up with international standards.

Commenting on the Award received by theSEM, Mr. Gaetan Lan Hun Kuen, Chairmano the SEM said: This Award or the secondconsecutive year comes as a recognitiono the numerous initiatives taken recentlyby the SEM, with the active support o theMinistry o Finance, the FSC, the BOI andother private sector operators to scale upits activities and move up the value-chaino products and services it oers. In spiteo the very dicult market environment,the SEM has been actively pursuing aninternationalisation strategy to positionitsel as an attractive listing, trading and

capital-raising platorm or Global unds,Global business companies, specialist-debtproducts, and Arican based ventures. Wewould also like to congratulate the FSCor winning the Most Innovative CapitalMarket Regulator o The Year Award.

The other nominees in the Most InnovativeArican Stock Exchange category wereJohannesburg Stock Exchange, TheEgyptian Exchange, Casablanca StockExchange, Nigeria Stock Exchange, NairobiStock Exchange, Ghana Stock Exchange, Botswana Stock Exchange and Uganda

Stock Exchange.23 September 2012

The Stock Exchange

of Mauritius Ltd(Member of the

World Federation of

Exchanges)

The Stock Exchange o

Mauritius (SEM) wins

the Award or the Most

Innovative AricanStock Exchange or

2012


24/51


Mozambique

Structural ReformsThe Mozambique Stock Exchange announced to the market and to the public in general that His Excellence

Dr Manuel Chang, Honorable Minister o Finance, has appointed on the 6th April 2012, Mrs Anabela

Chambuca Pinho as Chairman and CEO o Mozambique Stock Exchange, in replacement o Dr. Jussub

Nurmamade whose term had come to the end.


25/51


Nairobi

The automation o the Back Oceoperations o the Trading Participants

o the NSE is a joint initiative o theNairobi Securities Exchange (NSE), theKenya Association o Stock Brokers andInvestment Banks (KASIB), the CapitalMarkets Authority (CMA) and the CentralDepository and Settlement Corporation(CDSC). Now, the entire process otrading in securities listed on the NSE issupported by IT, rom inputting an order, toprocessing the order, to making paymentand transerring the securities to the newowners.

The Broker Back Oce provides the

ollowing benets to Kenyas stock market:-1. 1.Investors will be able to trade

through their mobile phones andater additional security eatures areincluded and tested, through theinternet;

2. 2.Senior management o the TradingParticipants and the Clients o theTrading Participant will be able tomonitor and audit activities throughalert messages and exceptionreports;

3. 3.It permits internet access to thesystem, helping Trading Participants

expand their services across all ortyseven (47) counties and abroad;

4. 4.It supports Initial Public Oers(IPOs), portolio management andcomplaints processing.

The Broker Back Oce (BBO) is anarmative step that the Kenya capitalmarkets players and industry as a whole,has taken towards achieving internationalbest practise.

The BBO system vendor is Chella Sotwareo India.

THE NAIROBI

SECURITIES EXCHANGEIMPLEMENTS A BROKER

BACK OFFICE SYSTEM

NAIROBI: September

5, 2012: The

Nairobi Securities

Exchange (NSE),

Kenya Associationo Stockbrokers and

Investment Banks

(KASIB), Capital Markets

Authority (CMA) and

Central Depository and

Settlement Corporation

(CDSC) have launchedthe NSE Broker Back

Oce.

THE NAIROBI SECURITIES

EXCHANGE (NSE) SIGNSA MEMORANDUM OF

UNDERSTANDING WITH

THE SOMALIA STOCK

EXCHANGE INVESTMENT

CORPORATION (SSE)

NAIROBI: August 8, 2012: The NairobiSecurities Exchange entered into aMemorandum o Understanding withthe Somalia Stock Exchange InvestmentCorporation (SSE), regarding the possibilityo co-operating to establish a securitiesexchange business involving thetrading, settlement, delivery and otherstockbrokerage activities.

The Memorandum o Understanding is therst step in the journey that would see thedevelopment and implementation o asel sustaining stock exchange in Somalia.The Nairobi Securities Exchange shall haveprimary responsibility or the technicaldevelopment o the Somalia Stock

Exchange including identiying the mostsuitable partners and expertise or theoperations o the Somalia Stock Exchange.

The Somalia Stock Exchange InvestmentCorporation shall be responsible or theimplementation o the Somalia StockExchange and its subsequent operation.Both NSE and SSE will explore the locationo the Exchange, development o humancapital, the trading mechanism and thedevelopment o shariah products andservices.

The NSE is a ounder member o the AricanSecurities Exchanges Association (ASEA)and the East Arican Securities ExchangesAssociation (EASEA). The NSE has beeninvolved in the development o othermarkets in the region. Through EASEA,the regulations and standards o the EACstock exchanges have progressively beenharmonized. The members o EASEA alsoshare the same technology provider MillenniumIT.


26/51


NAMIBIAN STOCK

EXCHANGEannounces appointment

of new chief executive

The Chairman o the Namibian Stock Exchange, Sebby Kankondi on Thursday 25 October2012 announced that the Board o the NSX has appointed Tiaan Bazuin as Chie ExecutiveOcer with eect rom 1 January 2013.

Tiaan, who joined the NSX in 2011 as Listings Manager, was identied as a potential CEOduring the recruitment process or a successor to John Mandy, who had reached the NSXretirement age.Tiaan Bazuin holds a B.Comm (Economics) and LLB (Law) rom the University o NorthWest and was admitted as a Legal Practitioner in the High Court o Namibia in 2006. He hasbroad experience in regulatory compliance, nance and business development havingpreviously worked as Corporate Banker, Company Secretary and Chie Legal Ocer.

Tiaan expressed his appreciation or the responsibility the Board has entrusted him withand to John Mandy under whose tutelage he has been working at the NSX. In terms o theorderly handover process John will be retiring at the end o May 2013.

Commenting on the uture o the NSX, Bazuin said The Exchange is at a cross roadswith high expectations rom Government in terms o the Financial Sector Strategy. Mygoal is to continue the good work the NSX has been doing in maintaining a world classregulatory regime and to deepen the capital markets through various new products andservices we have been developing with the cooperation o our Regulator (NAMFISA) andother market participants.

Namibian


27/51


Zimbabwe

our months beore moving to work inPwC Bermudas Investment Management

Group or two years. Beore joining theZSE, she was working or the BermudaMonetary Authority in the Banking, Trust &Investment Group rom 2008 to 2011.

During her spare time Lina enjoys keepingup with current aairs, travelling, shopping,going to church and mentoring.

Obert NgwenyaFinance Executive

Obert joined the Exchange as the FinanceExecutive in July 2012.He is a Registered Public Accountantand Certied Chartered Accountant who

trained outside proessional practice andalso an Associate Member o Instituteo Bankers o Zimbabwe. Obert holdsa Bachelor o Accountancy HonoursDegree rom University o Zimbabwe andis currently nalizing a dissertation orExecutive MBA with NUST Graduate Schoolo Business ocusing on sources andsustainability o nance or SMEs as wellas pursuing a Post Graduate degree withUNISA. He has attended several prestigiousLeadership courses notably on StrategyManagement by Dr. Lonnie Strickland.

Obert has extensive experience in nancialmodeling, nancial reporting (IFRS andIAS), human capital development, strategyormulation and implementation gainedin working in several listed companieswhich have interests in nancial services,insurance sector and hospitality industries.Over the years he has had exposurein corporate governance and riskmanagement.He loves reading nancial mail, watchingsoccer (avourite team being ManchesterUnited) and cricket and going to church.

The ISIN codes are as ollows:TN Bank: ZW000 901

216 3Liestyle Holdings Limited: ZW000 901215 5

Securities Amendment Bill gazettedThe Securities Amendment Bill wasgazetted this August 2012. The intendedamendments to the Securities Act willurther extend the powers o the SecuritiesCommission. Key areas that will be dealtwith by the amendments are as ollows:

The commissioners will become

non executive, with executivepowers vested in the commissionschie executive

Allexchangesinthecountrywill

have to be companies rather thanmutual associations or other typeso corporate bodies

AsingleInvestorProtectionFund

will be established to compensateinvestors who are prejudiced as aresult o malpractice or insolvencyon the part o a stockbroker ordealer.

Assetmanagersandmanagersofcollective investment schemes,currently regulated by the Reserve

Bank o Zimbabwe, will all underthe control o the Commission.

New Appointments on the ZSEThe Zimbabwe Stock Exchange is pleasedto announce the ollowing two newadditions to its team:

Lina F. MushanguriListings ExecutiveLina joined the Exchange as the ListingsExecutive beginning o July 2012.

She obtained a Bachelor o Accountancy

Honours Degree rom University oZimbabwe and a Bachelor o AccountingScience Honours degree rom theUniversity o South Arica. Lina also hasthe ollowing designations: Certicate inTheory o Accounting rom the Instituteo Chartered Accountants o Zimbabwe,Certied Internal Auditor and CertiedFinancial Services Auditor. Currently, sheis in the last stage o her MBA with theUniversity o London. She is a member othe Institute o Risk Management o SouthArica.

Lina served her Articles o Clerkship withPriceWaterhouseCoopers in Zimbabweand was seconded to PwC New YorksBanking and Capital Markets Group or

TN Bank Lists on the

ZSETN Bank listed on the

ZSE on Wednesday 11

July 2012, ollowing

its demerger rom

TN Holdings Limited

(now Liestyle Holdings

Limited). The ceremonywas ociated by the

Minister o Finance, Mr.

Tendai Biti.

Lina F. Mushanguri Listings Executive

Zimbabwe


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ASEA

Hal YearStatistics


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Statistics

January - June 2012

Botswana Stock Exchange

USD

Total Value Traded 62,856,454.60

Equity Market Value Traded 49,321,106.18

Bond Market Value Traded 2,337,903.23

Others 11,197,445.19

Total Volume Traded 180,956,371.00

Equity Market Volume Traded 163,648,495.00

Bond Market Volume Traded 15,835,000.00

Others 1,472,876.00

Total Number of Transactions 2,694.00

Equity Market Number of Transactions 2,573.00

Bond Market Number of Transactions 5Others 116

Market Capitalization 54,079,476,096.00

Number of Listed Companies 37

Number of Traded Companies 30

Number of Trading Days 143

Exchange Rate/US$ 0.1279

Main Index Name Domestic Companies Index(DCI)

Main Index (Points) 7,238.05

Gains in Main Index (%) 3.75

P/E Ratio 4.3

Dividend Yield (%) 1.9


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Statistics

January - June 2012

Bourse Regionale des Valeurs Mobilieres

USD

Total Value Traded 111,297,437

Equity Market Value Traded 84,433,286

Bond Market Value Traded 26,864,151

Others -

Total Volume Traded 18,494,511

Equity Market Volume Traded 16,988,830

Bond Market Volume Traded 1,505,681

Others -

Total Number of Transactions 13,788

Equity Market Number of Transactions 12,676

Bond Market Number of Transactions 1,112

Others

Market Capitalization 8,041,984,896Number of Listed Companies 67



Exchange Rate/US$ (*) 521.01

Main Index Name BRVM-10

Main Index (Points) 169.72

Gains in Main Index (%) 7.09%

P/E Ratio 10.40

Dividend Yield (%) 12.66%


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Statistics

January - June 2012

Casablanca Stock Exchange

USD

Total Value Traded USD 2,579,893,391

Equity Market Value Traded 2,149,016,415


Others 0



Bond Market Volume Traded 45,506

Others 0




Market Capitalization USD 54,116,539,754





Main Index Name MASI

Main Index (Points) 10,054

Gains in Main Index (%) -2.2

P/E Ratio N/A

Dividend Yield (%) N/A


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Statistics

January - June 2012

Dar es salaam Stock Exchange

January to June ,2012 TZS USD


Equity Market Value Traded 22,722,425,975 14,474,726.70

Bond Market Value Traded 126,680,000,000 80,698,178.11

Others


Equity Market Volume Traded 26,177,986 26,177,986.00

Bond Market Volume Traded 1,346,800 1,346,800.00

Others



Bond Market Number of Transactions 40Others

Market Capitalization as at 30 June 2012



Number of Trading Days

Exchange Rate/US$ 1,569.80 1,569.80

Main Index Name DSEI DSEI

Main Index (Points) 1,438.45 1,438.45

Gains in Main Index (%)

P/E Ratio

Dividend Yield (%)


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Statistics

January - June 2012

Egyptian Exchange

USD

Total Value Traded 18,134,490,742.00

Equity Market Value Traded 12,814,140,633.00

Bond Market Value Traded 3,787,339,877.00

Others 1,533,010,230.00

Total Volume Traded 17,117,483,417.00

Equity Market Volume Traded 16,537,885,693.00


Others 557,874,696.00

Total Number of Transactions 3,333,358.00

Equity Market Number of Transactions 3,306,738.00

Bond Market Number of Transactions 654.00Others 25,966.00






Main Index Name EGX 30



P/E Ratio 11.2



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Statistics

January - June 2012

Ghana Stock Exchange

USD



Bond Market Value Traded 0

Others 0



Bond Market Volume Traded 0

Others 0




Market Capitalization 28,254.98





Main Index Name GSE Composite Index



P/E Ratio 11.04



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Statistics

January - June 2012

Johannesburg Stock Exchange

USD

Total Value Traded 2,008,507,442,191.00


Bond Market Value Traded 1,466,527,606,286.00

Others 320,910,960,337.00



Bond Market Volume Traded -

Others 85,696,269.00

Total Number of Transactions 14,650,525.00

Equity Market Number of Transactions 13,235,422.00

Bond Market Number of Transactions 195,470.00Others 1,219,633.00






Main Index Name



P/E Ratio 14.87



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Statistics

January - June 2012

Lusaka Stock Exchange

USD




Others 0



Bond Market Volume Traded 42,159,582,331.90

Others 0








Exchange Rate/US$ 0

Main Index Name (LASI)



P/E Ratio 13.7



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Statistics

January - June 2012

Malawi Stock Exchange

USD



Bond Market Value Traded 0

Others 0




Others 0

Total Number of Transactions 674

Equity Market Number of Transactions 674


Market Capitalization 933,439,701.11





Main Index Name MASI



P/E Ratio 21.25


Comments: The Malawi kwacha was devalued by 49 % on 7 May, 2012.


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Statistics

January - June 2012

Mozambique Stock Exchange

USD




Others 1,323,319.03


Equity Market Volume Traded 672,834.00


Others 370,000.00









Main Index Name test

Main Index (Points) 0

Gains in Main Index (%) 0

P/E Ratio 14.85



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Statistics

January - June 2012

Stock Exchange of Mauritius

USD


Bond Market Value Traded 269,550.14

Others

Total Volume Traded


Bond Market Volume Traded 407,263

Others

Total Number of Transactions


Bond Market Number of Transactions 84

Others






Main Index Name SEMDEX


Gains in Main Index (%) (1.61)

P/E Ratio 10.63



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Statistics

January - June 2012

Nairobi Securities Exchange

USD

Total Value Traded 2,936,268,986


Bond Market Value Traded 2,506,592,310

Others 0

Total Volume Traded 2,514,221,892

Equity Market Volume Traded 2,514,221,572


Others 0



Bond Market Number of Transactions 2,587Others 0

Market Capitalization 12,484,731,243




Exchange Rate/US$ 84

Main Index Name NSE 20 Share Index

Main Index (Points) 3,704


P/E Ratio 10


Comments

NAIROBI SECURITIES EXCHANGE LIMITED


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Statistics

January - June 2012

NamibianStock Exchange

USD




Others 18,869



Bond Market Volume Traded 265,897,000

Others 6,430









Main Index Name NSX Overall


Gains in Main Index (%) 6.05%

P/E Ratio 12.28

Dividend Yield (%)

Comments


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Statistics

January - June 2012

NigeriaStock Exchange

USD

Total Value Traded 7,828,993,982.60


Bond Market Value Traded 5,803,250,875.56

Others 984,137.88



Bond Market Volume Traded 1,051,302,575.00

Others 59,648.00



Bond Market Number of Transactions 7,241.00Others 155






Main Index Name NSE All-Share Index



P/E Ratio 22.58

Dividend Yield (%) 0

Comments - ETF AUM: 6,543,066.82


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Statistics

January - June 2012

RwandaStock Exchange

USD



Bond Market Value Traded 163,820

Others 0




Others 0









Main Index Name 0.00

Main Index (Points) -


P/E Ratio 0


Comments The rate used is an average for the month of June 2012


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Statistics

January - June 2012

Sierra LeoneStock Exchange

USD

Total Value Traded 102,786.38

Equity Market Value Traded 102,786.38

Bond Market Value Traded

Others



Bond Market Volume Traded

Others



Bond Market Number of TransactionsOthers




Number of Trading Days 2 Days /week

Exchange Rate/US$ 4,400.00

Main Index Name Domestic Companies Index(DCI)


Gains in Main Index (%)

P/E Ratio 15.11

Dividend Yield (%)


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Statistics

January - June 2012

Uganda Securities Exchange

USD




Others 0




Others 0








Exchange Rate/US$ 2,472.00

Main Index Name USE All SHare Index



P/E Ratio 14.91



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Statistics

January - June 2012

ZimbabweStock Exchange

USD



Bond Market Value Traded 0.00

Others 0.00



Bond Market Volume Traded 0.00

Others 0.00



Bond Market Number of Transactions 0.00Others 0.00





Exchange Rate/US$ 0

Main Index Name Industrials



P/E Ratio 0



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Egyptian Exchange | Tel: +02 35316300 / 400 | fx.: +02 35316388 | website: www.egx.com.eg |www.africansea.org | www.aseaegypt2012.org | E-mail: [email protected] | [email protected]

African Securities ExchangesAssociation Conference

Unleashing Africa's Investment Potential

What could be done by African Capital Markets?

2nd - 4th December 2012

Four Seasons Nile Plaza, Cairo, Egypt

Egypt welcomes you to

ASEA


48/51


Pyramids o GizaThe Giza Pyramids are a constant and

popular attraction or the world atlarge. They stand or ancient Egyptiancivilizations best and most archetypalwork. Together with the Sphinx, theysimply embody ancient Egypt.

Great Pyramid of Khufu (Cheops)The Great Giza Pyramid o Khuu is the lastsurviving member o the Seven Wonderso the Ancient World. It was originally146 m (479 t) high but now stands a stillimpressive 137 m (449 t). Over 2 millionblocks o stone were used to construct it,and all with manual labor.

Py

Documents

ASEA Newsletter 2012 (Final).pdf