ASEA Yearbook2008

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ASEA supports its members in the establishment of stock exchanges and the development of Africa's capital

markets by providing a forum for mutual communication, exchange of information, cooperation and technological

assistance among the members.

ASEA aims at harmonizing standards for market principles to facilitate the process of financial integration within

the region, for the effective mobilization of capital and the acceleration of economic development in Africa.


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Office Bearers

PresidentMr. Maged Shawky SourialThe Egyptian Exchange

MemberDr. Ndi Okereke-OnyiukeThe Nigerian Stock Exchange

MemberMr. Peter MwangiNairobi Stock Exchange (NSE)

Member

Mr. Geoff RothschildJSE Limited

Member

Mr. Simon RutegaUganda Securities Exchange Ltd.

First Vice President

Mr. Ekow AfedzieGhana Stock Exchange (GSE)

Second Vice President

Mr. Sunil BenimadhuStock Exchange of Mauritius (SEM)

ASEA Executive Committee


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Chairmans Letter

The African continent has been hammered, similar to other parts of the world, by the global financialcrisis, which began with the collapse of the Housing market in the United States and has further deepenedtowards the end of 2008, causing many countries to enter into a recession. The shock waves have reachedour countries in the region, hitting key drivers of growth, in particular trade flows, capital and investmentinflows, natural resource sectors and exports.

The global economic downturn has indeed presented significant challenges for world stock markets.The majority of ASEA member exchanges, in particular those linked to the world markets, were hard

hit by the crisis and have actually suffered one of the worst market decline in 2008, posting annualizedlosses on their indices ranging from 56% to 7%. Three member markets; Ghana, Malawi and Dar-es-salam Stock Exchanges, have, however, managed to realize gains on their indices, reaching 58%, 26%and 21%, respectively. ASEA member exchanges have therefore concluded the year with an aggregatemarket capitalization of US$ 846 billion, down from US$ 1.3 trillion recorded in 2007.

Despite the global turmoil and the poor markets' performance during 2008, ASEA member exchangescontinue to focus on the development of the operational infrastructure as well as the regulatoryframework of their markets, to secure an efficient and transparent market, while promoting strongercorporate governance practices.

ASEA, as an association for systematic mutual cooperation and assistance among members, has steadilyraised its profile over the years, growing in number and succeeding in attracting potential exchangesto join the Association. Over the course of the past year, the Central Securities Clearing System Ltd(Nigeria) has joined the association as an observer member, while the South Asian Federation of Exchanges(SAFE) was accepted as an affiliate member of ASEA. The Douala Stock Exchange was also accepted asa full member, upon submission of the full required documentation.

ASEA has also set a corporate strategic plan, which is designed to achieve the objectives of the Association,help member exchanges attain a greater role in the competitive global market environment, as well aspromote investment in the African region. In that respect, three task forces were established, namely

Corporate Governance, Integration in Africa as well as Promotion & Marketing, to guide the Associationon the way forward.

The Corporate Governance Task Force proposed a guidance for the common standards to be adoptedby member exchanges, while the Integration Task Force has presented the SADC project for integrationas a reference for ASEA, when studying prospects of integration, and finally the Promotion and MarketingTask Force, prepared a marketing plan, addressing different marketing strategies, including the

Maged ShawkyPresident

African Securities Exchanges Association


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cooperation with significant associations in the exchange industry, as well as other regional bodies. Theplan also called for the creation of a benchmark index for ASEA to be launched by a reputable indexprovider to serve as a marketing tool for the members to all foreign and domestic investors.

From another perspective, we attach a great value to ASEA website, launched under the URLwww.africansea.org, as well as the ASEA Yearbook, first released in 2006, as a summary reference for

ASEA members, to serve as marketing tools to attract interest to the African region.ASEA 12th Annual Conference was held, during November 2008, in Kampala, Uganda, with the themeAfrica on the Move: Capital Markets driving Economic Transformation. The conference addressedthe investment opportunities in Africa, in view of the global financial crisis, the alternative financingchannels, the feasibility of regional integrations as well as the corporate governance role in enhancingvalue.

The Association has also maintained active participation in other relevant conferences and workshopsduring the year 2008. ASEA has partnered with Africa Investor (Ai) for the Ai Index Series Roundtableand Awards, that was held in collaboration with NYSE Euronext on September 15th 2008, whereby several

ASEA members had the opportunity to present their views and experiences at the event, which broughttogether over 100 attendees from different parts of the world, including the investment community atWall Street.

Moreover, ASEA representatives were invited to participate in the workshop held by the African Unionin Ethiopia, for the establishment of a Pan African Stock Exchange, whereby a gradual approach for thecreation of the Pan African Exchange, based on consolidating stock markets at the regional level, wasrecommended.

Experiencing the global financial crisis and monitoring its effects on our continent and the action plans

and development strategies of the African markets, is raising my poise that this is an exciting opportunityand a real chance for Africa to be more engaged in the global financial system, realizing our capacityas an attractive investment destination and one of the best world performers in terms of return onportfolio investment.

In closing, I would like to express my sincere appreciation for your continuing commitment and supportfor the Association. It also gives me a great pleasure to report ASEA achievements, for which I servedas President for the past four years. We are all well aware that we would not have accomplished asmuch, without the dedicated efforts of the Executive Committee members, the Secretariat as well as allASEA members.

Maged ShawkyPresidentAfrican Securities Exchanges Association


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ASEA Member Countries

Egypt

Ghana

CoteDvoire

Nigeria

Uganda Kenya

Tanzania

MozambiqueZambia

Malawi

Namibia Zimbabwe

Botswana

South Africa

Morocco

Swaziland

Mauritius

Mali Niger

Togo

BurkinaFaso

Guinea

Senegal

Benin

Libya

Sudan


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ASEA Member Exchanges

Bond Exchange of South Africa

Botswana Stock Exchange

BRVM

Casablanca Stock Exchange

Dar-Es-Salam Stock Exchange

The Egyptian Exchange

Ghana Stock Exchange

JSE Limited

Khartoum Stock Exchange

Libyan Stock Market

Lusaka Stock Exchange

Malawi Stock Exchange

Mozambique Stock Exchange

Nairobi Stock Exchange

Namibian Stock Exchange

Stock Exchange of Mauritius

Stock Exchange of Swaziland

The Nigerian Stock Exchange

Uganda Securities Exchange

Zimbabwe Stock Exchange

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20


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Table of Contents

ASEA at a Glimpse

ASEA Background

ASEA Primary Objects & Powers ASEA Membership

ASEA Strategic Plan & Task Forces

ASEA Executive Committee Meetings & Annual

General Meeting during 2008

ASEA Annual Conference

ASEA Publications and Information

ASEA Partnership and Presence during 2008

Main Economic Indicators (ASEA Member Countries)

Market Highlights (ASEA Member Stock Exchanges)

Member Exchanges Profiles

Bond Exchange of South Africa


10

12

1314

16

17

19

20

21

23

31

49

50

60


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Dar-Es-Salam Stock Exchange

The Egyptian Exchange

Ghana Stock Exchange

JSE Limited

Khartoum Stock Exchange

Lusaka Stock Exchange

Malawi Stock Exchange

Mozambique Stock Exchange

Nairobi Stock Exchange

Namibian Stock Exchange

The Nigerian Stock Exchange

The Stock Exchange of Mauritius

Uganda Securities Exchange

ASEA Audited Financial Statements - June 2008

66

77

91

100

112

120

129

138

143

156

163

177

190

197


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he African Stock Exchanges

Association (ASEA) was registered in

Nairobi on 13, November 1993 with

the object of, inter alia, establishing an

association for systematic mutual cooperation,

exchange of information, materials and

persons, mutual assistance and joint programs

between the members.

In September 2006, in recognition of the fact

that Stock Exchanges trade a variety of

products other than equity securities, the

Association changed its name to the African

Securities Exchanges Association and also

amended its articles and memorandum ofassociation to allow for the creation of an

Executive Committee; elected at the Annual

General Meeting, whose members are

responsible for the business and affairs of the

Association.

The Executive Committee, which consists ofseven members, acts as the Board of Directors

African Securities

Exchanges Association

of ASEA, where the President and the Vice

President are elected at the Annual General

Meeting for a term of two years. The President

and Vice President are currently held by the

Egyptian Exchange and Ghana Stock Exchange,

respectively, while the Secretariat is headed

by Kenya Stock Exchange and is based in

Nairobi, Kenya.

ASEABackground

T

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ASEA Yearbook 2008

African Securities Exchanges

Association


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ASEAPrimary Objects and Powers

1. To establish an association for systematic

mutual cooperation, exchange of infor-

mation, materials and persons, mutual

assistance and joint programmes between

the members.

2. To promote the establishment of securities

exchanges in all African countries.

3. To promote the development of common

standards of training and professionalism

among members of the Association and

other market players.

4. To promote common standards of issuing,

listing, trading and settlement of securities.

mutual cooperation ... exchange of information ... standards harmonization

5. To facilitate the development and prom-

otion of products and services for Africa's

capital markets.

6. To assist members in the promotion and

development of the range of services

associated with the capital markets.

7. To develop and promote a data bank and

information system for the mutual benefit

of members.

8. To study and research on matters of mutual

interest to members.

9. To disseminate information; producematerials in all media, hold conferences,

seminars and exhibitions and conduct other

public education activities relevant to the

interests of members.

10. To ensure that the views and interests of

the Association are promoted in the

appropriate worldwide fora.

To do all other things, not inconsistent with

the foregoing as shall promote the objects

and powers.

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The membership of the association is open to

any securities exchange or nascent stock

exchange located in the African region or any

other organization, after filling the admission

application, submitting a Letter of Interest

and getting the Executive Committee approval.

ASEA offers the following three membership

categories:

a. Full Membership

Granted to all securities exchanges in Africathat are legally recognized and in operation

in their countries.

b. Associate Membership

Granted to all nascent securities exchanges

in Africa that do not meet the requirements

of the full membership criteria.

c. Observer Membership

Granted to national or international

organizations that have an interest in or

related to the exchanges industry and will

assist the association in a constructive way.

ASEA is currently comprised of 20 full member

exchanges from across Africa, serving twenty

seven African states. The association has,

among its members, one Bond Exchange; the

Bond Exchange of South Africa and one

regional exchange, which is the Bourse

Regionale des Valeurs Mobilieres (BRVM) that

consists of 8 countries namely; Benin, Burkina

Faso, Ivory Coast, Guinea Bissau, Mali, Niger,

Togo and Senegal.

The Central Securities Clearing System Ltd

(Nigeria) is currently the only observer

member in ASEA, which was accepted in 2008.

The Central Depository and Settlement

Corporation (Kenya) has applied for anobserver membership in 2007, however it is

still pending upon documents' completion.

During 2008, the South Asian Federation of

Exchanges (SAFE) was accepted as the only

affiliate member of ASEA.

ASEAMembership

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ASEA Yearbook 2008

membership ... is open to any

Exchange in Africa ...

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New Applications

In addition to the two previously received

membership applications from the Bourse des

Valeurs Mobileres de L' Afrique Centrale

(BVMAC) as well as the Cape Verde Stock

Exchange, ASEA has received a full member-

ship request from the Douala Stock Exchange,

which was accepted by the Executive

Committee that was held in November 2008,

subject to the Exchange submission of the full

required membership documents.

The association welcomes other African stock

exchanges that are currently under establish-

ment to join ASEA as associate members.

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Development of a New Membership Fees Scheme

ASEA Executive Committee members have

developed a new membership fees scheme,

which is structured according to the different

categories of membership as provided in ASEA's

Articles of Association, i.e. full membership,

associate membership and observer member-

ship. The scheme took into consideration

several factors including market size, turnover,

membership duration ..etc and is currently

being studied for implementation.

different categories ofmembership ... full ... associate

... and observer ..

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ASEA Corporate Plan for years 2008-2010 was

prepared by the Secretariat based on the

proposals of the members. The plan carries

out a situation as well as a SWOT analysis for

the Association, to be followed by the form-

ulation of necessary strategies to achieve

required objectives.

In that respect, three task forces were

established, namely Corporate Governance,

Integration in Africa as well as Promotion andMarketing, whose mandates are to set a work

plan for ASEA to achieve its mission and to

guide the Association on the way forward.

The Corporate Governance Task Force pro-

posed a guidance for the corporate governance

standards that was approved by the task forcemembers.

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ASEA Yearbook 2008

ASEAStrategic Plan & Task Forces

The Integration Task Force has presented the

SADC project for integration as a reference

for ASEA, while studying prospects of

integration.

The Promotion and Marketing Task Force

prepared a marketing plan, including different

marketing strategies tackling the issues of

cooperation with other significant associations

in the exchange industry such as WFE, FEAS,

..etc as well as other regional bodies such as

NEPAD, UNECA and COMESA. The plan alsocalled for the creation of a benchmark index

for ASEA to be launched by a reputable index

provider, which will serve as a marketing tool

for the members to both domestic as well as

foreign investors.

The plan also suggested conducting annualroad shows to promote ASEA and its members,

together with the creation of a corporate

branding for the Association to be used in

publications or events serving the promotional

purposes.

... three task forces were established,namely Corporate Governance,

Integration and Promotion &Marketing

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Executive Committee Meetings

Two Executive Committee meetings were held

during 2008, whereby the 15th ASEA Executive

Committee meeting was hosted by the Egyptian

Exchange on the 27th of February 2008, while

Kampala Stock Exchange has hosted the 16th

meeting on the 9th of November 2008.

The 15th Executive Committee meeting

followed up on the latest developments of the

association and discussed the proposals of

seven members for ASEA Strategic Plan. From

another perspective, EGX presented the latest

development of the new website as well as the

annual yearbook of 2007 and stressed on theimportance of the continuous update of the

ASEAExecutive Committee &Annual General Meetings during 2008

data on the website as well as the commitment

to deadlines for data submission.

The Executive Committee members also

discussed the proposal from Africa Investor

(Ai) to partner with ASEA in the Index Series

Award and Roundtable to be held in New York

during September 2008 and the committee

accepted the partnership proposal. Finally,

Uganda Securities Exchange presented the

draft program of the 12th ASEA conference to

be held in Kampala during November of the

same year.

During the 16th Executive Committee meeting,

the Douala Stock Exchange was accepted as afull member subject to the submission of the

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... FTSE Group, Nex Rubica Groupand Dow Jones Indexes/STOXX,

who were interested indeveloping indices for ASEA ...

required membership documents. In addition,

the Central Securities Clearing System (Nigeria)

was accepted as an observer member.

Moreover, the Chairmen of ASEA three task

forces for Corporate Governance, Integration

in Africa as well as Promotion and Marketing,

updated the committee with the status of their

assigned tasks. Within the framework of the

Marketing and Promotion task force, the

committee members received written pro-

posals from three index providing companies,

namely; FTSE Group, Nex Rubica Group and

Dow Jones Indexes/STOXX, who wereinterested in developing indices for ASEA that

could serve as a marketing tool for the

members to domestic as well as foreign

institutional and retail investors.

Finally, the Committee approved the signing

of an MOU with the Southern Asian Federationof Exchanges (SAFE).

Annual General Meetings

The 12th Annual General Meeting (AGM) was

held on the 9th of November 2008 in Kampala,

Uganda and was hosted by Uganda Securities

Exchange. During the meeting, ASEA members

reviewed and approved the Audited Financial

Statements for the year ended 30th June 2008

and it was agreed that KPMG Kenya should

be re-elected as ASEA's auditors for the ensuing

year.

From another perspective, each of the mem-bers presented a brief of their respective

markets sharing the highlights of the previous

year, which brought up a number of important

issues related to the development of the

African markets, to level up members' competi-

tiveness and enable them to step up global

challenges. One of the recommendations madein that respect was to encourage the member

exchanges to join the World Federation of

Exchanges (WFE), even as affiliate members.

Finally, it was resolved that the 13th ASEA

AGM as well as the annual conference, to be

held in, Abuja, Nigeria during the last quarter

of 2009, at a date to be set by Nigeria Stock

Exchange.

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The 12th ASEA conference Africa on the Move:

Capi ta l Markets dr iv ing EconomicTransformation was held in Kampala, Uganda

over the period from 9th till 11th of November

2008 and was hosted by Uganda Securities

Exchange, which was celebrating its 10th year

anniversary since the first listing on the

Exchange platform in 1998.

The President of the Republic of Uganda has

officially opened the conference, whereby he

stressed that the success and profitability of

stock exchanges are inter-dependant on the

economic indicators of the countries.

The conference has addressed several key topics,

including but not limited to, the investment

opportunities in Africa in light of the global

Africa on theMove: CapitalMarkets driving Economic

Transformation ... focused oninvestment opportunities amid

the global financial crisis ...regional integration, and

soverign rating ...

19

ASEAConferenceduring 2008

financial crisis and credit turmoil, the

feasibility of regional integration, sovereign

bonds, the importance of sovereign ratings

and infrastructure financing as well as the

corporate governance role in enhancing value.

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ASEAPublications and Information

To enhance the ability of ASEA in providing

a credible and central source of information

on the Association and its members, ASEA

website was upgraded several times to have

a more user-friendly interface, updated

information and useful features that best serve

all users. The website provides a mediumthat highlights ASEA programs and latest

achievements, together with members' profile,

news, trading data as well as direct links to

their websites.

From another perspective, to widen the spread of information about African markets and

increase their profile, ASEA publishes its annual Yearbook, providing comprehensive economic

and trading statistics about member exchanges and shedding the light on ASEA objectives,achievements and future prospects. ASEA Yearbooks, available on CDs and hardcopies, are

distributed in relevant African forums and conferences.


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were speakers in different sessions, sharing

their views and experiences concerning capital

market development in the African continent.

A diversified agenda was offered over four

sessions, discussing different issues such as

corporate governance and risk in Africa,

companies and markets' dynamics in the

region, investable African securities as well

as the issues of liquidity and execution in the

capital markets across the continent.

Moreover, for the second consecutive year,

ASEA President was chosen to join the judging

panel of the Ai Index Series awards and was

invited to give the key note of the ceremony

that was held on the same day.

Africa Investor (Ai)- NYSE Euronext Summit

Africa Investor and NYSE Euronext have come

together on the 15th of September 2008 to

host the Ai annual summit and roundtable to

profile African stock exchanges, listed

companies and the institutional investment

community to Wall Street. The Summit

brought together over 100 attendees from

different parts of the world, including stock

markets officials, investment bankers, listedcompanies, fund managers and analysts.

Based on the partnership agreement signed

between ASEA and Ai to jointly hold the Ai

Index series summit, with the aim to promote

each other's activities and events, eight ASEA

members attended the summit, of which six

ASEAPartnership andPresence during 2008

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From another perspective, ASEA President was

invited to be a speaker in a high-level round-

table on Sovereign Wealth Funds, Socially

Responsible Investments and Millennium

Development Goals in Africa on the 16th of

September, which was held at the United

Nations in New York and was organized jointly

by the UN and Ai.

AU Pan African Exchange Workshop

ASEA representatives were invited to parti-

cipate in the validation workshop for the

feasibility study on the establishment of the

Pan African Stock Exchange that was organized

by the African Union (AU) in Addis Ababa,

Ethiopia on the 6th and 7th of November, 2008.

It was agreed during the meeting to have agradual approach for the creation of the pan-

African stock exchange, based on consolidating

ASEA President was invited to be a speaker in a high-level roundtable onSovereign Wealth Funds, Socially Responsible Investments and MillenniumDevelopment Goals in Africa ... held at the United Nations in New York

and was organized jointly by the UN and Ai.

stock markets at the regional level. This model

promotes the idea that stock exchanges

establish close alliances to ensure that there

is consolidation at the level of regional

economic communities and sub-regions.

According to this model, a pan African stock

market could emerge later, after significant

progress has been made at regional and sub-

regional levels.

In that respect, it was recommended to

conduct an additional study to ensure a

gradual realization of the integration of the

African stock exchanges, comprising the

definition of the concept of the Pan African

Exchange, implementation modalities, the cost

of implementation and an implementation

plan. The outcome of the workshop was

submitted to the Conference of African

Ministers of Finance, Planning and EconomicDevelopment in April 2009 for consideration.


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Botswana

2006 2007

1.80

24.40

N/A

8.10

N/A

N/A

11.97

6.01

Population (million)

Real GDP (USD billion)

Real Per Capita GDP (USD)

Inflation Rate (%)

FDI

Unemployment Rate (%)

Interest Rate (T-Bills 91 Days) %

Exchange Rate (Local Currency versus USD)

Indicators

1.78

22.78

N/A

8.50

N/A

17.50

12.72

6.03

2008

1.90

26.04

N/A

13.70

N/A

N/A

13.13

7.52

Egypt

2005/2006 2006/2007

75.00

130.67

1,742.22

8.60

11.059.10

6.78

5.70




Inflation Rate (%)

FDI (USD billion)Unemployment Rate (%)


Exchange rate (Local Currency versus USD)

Indicators

73.60

107.43

1,459.59

7.20

6.119.60

8.84

5.75

2007/2008

77.50

168.20

2,170.31

20.20

13.248.40

9.68

5.33


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Ghana

2006 2007

21.00

13.40

666.00

12.70

N/A

N/A

10.62

0.97




Inflation Rate (%)

FDI (USD million)



Exchange Rate (Local Currency versus USD) **

Indicators

20.47

10.68

600.00

10.50

243.00

N/A

10.35

0.92

2008

21.00

14.00*

N/A

18.10

N/A

N/A

24.66

1.20

25

Kenya

2006 2007

37.50

27.58

730.00

9.70

691.70N/A

6.89

62.68




Inflation Rate (%)

FDI (USD million)Unemployment Rate (%)



Indicators

36.60

22.78

620.00

14.50

26.70N/A

5.83

69.40

2008

38.60

34.51

900.00

26.00

610.00N/A

8.54

68.00

* Estimated** In 2007, Ghana revalued its currency with 10,000 cedis equal to 1 new cedis.

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Malawi

2006 2007

13.20

7.90

262.80

8.00

N/A

N/A

9.81

140.70




Inflation Rate (%)

FDI




Indicators

12.80

8.20

239.40

13.90

N/A

N/A

17.30

136.69

2008

13.60

7.40

293.90

8.00

N/A

N/A

13.53

140.60

Mauritius

2006 2007

1.23

8.10

6,601.90

8.80

313.817.60

10.05

28.68




Inflation Rate (%)




Indicators

1.22

6.23

5,112.63

8.90

194.019.10

12.45

33.04

2008

1.27

8.07

6,361.83

9.70

724.707.20

8.83

32.69

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arketH

ighlights

FinancialStatements

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Indicators


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27

Namibia

2006 2007

2.03

6,916.50

3,407.14

6.60

N/A

48.00

9.80

7.05


Real GDP (USD million)


Inflation Rate (%)

FDI (USD million)




Indicators

1.84

6,928.62

3,765.56

6.10

N/A

44.00

7.95

6.77

2008

2.10

5,377.53

2,560.73

10.30

N/A

31.10

10.72

9.39

Nigeria

2006 2007

144.06

240.00

1,256.60

6.60

N/AN/A

6.54

116.80




Inflation Rate (%)

FDIUnemployment Rate (%)



Indicators

140.00

183.00

1,036.20

8.50

N/AN/A

8.30

127.00

2008

148.67

256.80

N/A

11.50

N/AN/A

5.00

131.25

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South Africa

48.78

133.51

N/A

11.30

N/A

21.70

11.11

8.27

2006 2007

47.85

175.27

3,607.00

7.10

2,569.00

25.50

9.30

7.05




Inflation Rate (%)

FDI (USD million)


Interest Rate (T-Bills 91 days) %


Indicators

47.39

172.83

3,620.00

4.70

-7,250.00

25.50

7.50

6.78

2008

Sudan

2006 2007

42.22

46.20

1,242.00

8.10

4,241.0017.20

2.01


Real GDP (US billion)


Inflation Rate (%)



Indicators

41.24

36.40

1,005.00

7.20

3,541.0017.30

2.17

2008

43.16

53.90

2,500.00

8.00

4,312.0018.70

2.00

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Uganda

2006 2007

28.20

11.75

413.26

4.90

N/AN/A

7.76

1,697.00




Inflation Rate (%)


Interest Rate (T-Bills 91 days) %


Indicators

27.46

10.69

390.60

11.30

286.90N/A

9.46

1,741.44

2008

30.00

11.54

405.61

8.60

N/AN/A

11.60

1,729.00

Tanzania

2006 2007

39.69

18.50

466

7%

512.50

11%

16%

1132.09



Real Per Capita GDP

Inflation Rate (%)

FDI (USD million)




Indicators

38.56

14.23

369

7.30%

474.5

11.40%

15%

1261.21

2008

40.84

17.52

429

9.30%

N/A

12%

N/A

1280.3

M

ainEconomic

Indicators

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ighlights

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Zambia

2006 2007

12.16

11.80

970.11

8.90

N/A

N/A

11.50

3,910.00




Inflation Rate (%)

FDI




Indicators

11.80

9.38

795.13

8.20

N/A

N/A

8.70

4,100.00

2008

12.53

10.85

866.28

16.60

N/A

N/A

N/A

4,985.00


M

arketH

ighlights

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ainEconomic

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33/213

Comparative Market Statistics (2008 vs. 2007)

2007 2008

515,986.80

312,342.76

845.74

1,375

Value Traded (USD million)

Volume Traded (million)

Market Capitalization (USD billion)

Number of Listed Companies

Indicators

510,045.07

240,042.05

1,285.34

1,416

% Change

1.16%

30.12%

-34.20%

-2.90%

ASEA Members Trading Aggregates *

2008 Market Highlights

Bo t swana SE

Dar Es Sa lam SE

EGX *

Ghana SEJSE L td

Khar toum SE

Lusaka SE

Malawi SE

Mozamb ique SE

Nairob i SE

Namib ian SE

Niger ia SE

SE of Ma ur i t ius

Ugand a SE

Exchange # o f L i s t edC o m p a n i e s

3 1

1 4

3 7 3

3 5

4 2 5

5 3

1 9

1 5

6

5 6

2 9

2 1 3

9 3

1 3

T u r n o v e rR a t i o ( % )

3 . 8 6

0 . 6 8

7 0 . 3 0

2 . 1 0

7 1 . 8 4

5 . 0 0

0 . 6 6

3 . 3 4

3 . 3 0

1 1 . 4 2

1 . 3 8

2 1 . 8 6

9 . 6 6

1 . 8 1

M a r k et C a p .( U S D b i l l i o n )

3 . 6 8

3 . 8 0

8 5 . 8 4

1 4 . 9 1

5 4 9 . 2 0

4 . 1 7

4 . 1 1

1 . 7 9

0 . 2 9

1 0 . 9 8

7 8 . 9 8

8 0 . 6 0

4 . 5 3

2 . 8 7

V o l u m e T r a d e d( m i l l i o n )

1 9 2 . 7 1

2 6 . 9 8

2 5 , 4 8 9 . 6 3

5 4 5 . 7 9

8 3 , 7 7 8 . 0 0

2 8 9 . 0 1

1 , 5 8 5 . 7 7

6 0 7 . 5 3

3 . 4 3

5 , 8 5 6 . 5 4

2 9 1 . 7 6

1 9 3 , 1 4 0 . 0 0

3 1 8 . 6 8

2 1 6 . 9 3

V a l u e T r a d e d( U S D m i ll io n )

1 5 5 . 0 6

2 5 . 7 3

9 6 , 8 2 4 . 9 5

3 1 6 . 6 9

3 9 4 , 5 5 8 . 5 2

9 3 9 . 5 9

1 6 7 . 8 4

5 9 . 7 0

9 . 5 4

1 , 2 5 5 . 0 0

1 , 0 8 4 . 8 4

2 0 , 1 0 0 . 0 0

4 3 7 . 4 2

5 1 . 9 2

M a r k et C a p .a s % o f G D P

4 0 . 7 0

2 1 . 6 9

5 3 . 0 0

1 0 9 . 0 0

N / A

N / A

4 0 . 0 4

4 4 . 8 3

1 . 5 3

3 1 . 8 1

1 4 . 6 9

4 1 . 9 0

5 6 . 0 0

2 4 . 8 5


P /E

N / A

N / A

9 . 9 5

2 6 . 2 0

1 0 . 9 4

N / A

N / A

1 2 . 4 8

N / A

1 1 . 9 3

N / A

N / A

6 . 1 7

N / A

D Y

N / A

N / A

8 . 7 6

2 . 7 0

4 . 9 8

N / A

N / A

3 . 0 5

N / A

2 . 6 0

N / A

N / A

5 . 1 4

N / A

* P/E and DY rat i o s are based on the m os t act ive companie s on ly .

* Exc lud ing Bond Exchange o f Sou th Af r i ca (BESA) , Casab lanca , L ibya , Swaz i land , Z imbabwe S tock Exchanges and BRVM .


34/213

Return on ASEA Member Exchanges Indices (Local Currency)

Ghana SE

Malawi SE

Dar Es Sa lam SE

Khar toum SEBotswana SE

Ugand a SE

JSE Ltd

Lusaka SE

Nairob i SE

SE of Ma ur i t ius

Namib ian SE

Niger ia SE

EG X

Exchange % Change

58 .06%

25 .60%

21 .26%

-7.30%-16.46%

-21.38%

-26.28%

-29.08%

-35.33%

-36.14%

-40.15%

-45.77%

-56.43%

Index Closing (end of year)

2008

10,431.64

6,091.15

1,239.93

2,745.857,035.50

779 .25

21,348.45

2,505.88

3,521.18

1,182.74

556 .26

31,450.78

4,596.49

2007

6,599.77

4,849.79

1,022.50

2,962.108,421.63

991 .12

28,957.97

3,533.52

5,444.83

1,852.21

929 .41

57,990.22

10,549.74

Index Name

GSE Al l Share Index

Malawi Al l Share Index (MASI )

DSE I

Khar toum Ind exD CI

USE Al l Share Index

FTSE/JSE Al l Share Index

Al l Share Index*

NSE 20 Share Index

SEMDEX

NSX O veral l Index

NSE Al l Share Index

EGX 30

33

* Exc lud ing ZCCM- IH

ASEA

ataGlimps

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ainEconomic

Indicators

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arketH

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Market Capitalization

Malawi SE

Dar Es Sa lam SE

Ghana SE

Mozamb ique SELusaka SE

Ugand a SE

Nairob i SE

Khar toum SE

Niger ia SE

JSE L td

Botswana SE

EG X

SE of Ma ur i t ius

Namib ian SE

Exchange % Change

38 .44%

36 .20%

17 .03%

-5.63%-14.94%

-18.67%

-19.32%

-19.50%

-23.71%

-32.03%

-32.35%

-38.55%

-41.72%

-54.75%

Market Cap (USD billion)

2008

1.79

3.80

14 .91

0.294.11

2.87

10 .98

4.17

80 .60

549 .20

3.68

85 .84

4.53

78 .98

2007

1.29

2.79

12 .74

0.314.83

3.53

13 .61

5.18

105 .65

807 .97

5.44

139 .69

7.77

174 .54


ASEA

ataGlimps

e

M

ainEconomic

Indicators

M

arketH

ighlights

FinancialStatements

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arket

Highlights


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Value Traded

Mozamb ique SE

Lusaka SE

Ghana SE

Ma lawi SEEG X

Niger ia SE

Bo t swana SE

Khar toum SE

Ugand a SE

Dar Es Sa lam SE

SE of M aur i t ius

JSE L td

Nairob i SE

Namib ian SE

Exchange % Change

169 .63%

131 .94%

118 .56%

61 .37%46 .69%

21 .08%

12 .64%

4.42%

3.41%

-1.87%

-1.92%

-6.65%

-11.43%

-29.40%

Value Traded (USD million)

2008

9.54

167 .84

316 .69

59 .7096,824.95

20,100.00

155 .06

939 .59

51 .92

25 .73

437 .42

394 ,558 .52

1,255.00

1,084.84

2007

3.54

72 .36

144 .90

37 .0066 ,008 .47

16 ,600 .00

137 .66

899 .80

50 .21

26 .22

445 .96

422 ,665 .27

1,417.02

1,536.66

35

ASEA

ataGlimpse

M

ainEconomic

Indicators

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arketH

ighlights

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Volume Traded

Mozamb ique SE

Nairob i SE

Ghana SE

Malawi SEEG X

Botswana SE

Niger ia SE

Namib ian SE

JSE Ltd

SE of Ma ur i t ius

Dar Es Sa lam SE

Lusaka SE

Ugand a SE

Khar toum SE

Exchange % Change

289 .55%

202 .16%

90 .03%

68 .98%68 .90%

54 .30%

39 .86%

20 .27%

18 .21%

5.94%

-10.87%

-43.37%

-55.19%

-96.93%

Volume Traded (million)

2008

3.43

5,856.54

545 .79

607 .5325 ,489 .63

192 .71

193 ,140 .00

291 .76

83 ,778 .00

318 .68

26 .98

1,585.77

216 .93

289 .01

2007

0.88

1,938.20

287 .22

359 .5215 ,091 .29

124 .89

138 ,100 .00

242 .60

70 ,870 .00

300 .80

30 .27

2,800.27

484 .13

9,411.98


ASEA

ataGlimpse

M

ainEconomic

Indicators

M

arketH

ighlights

FinancialStatements

M

arket

Highlights


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2008 Gains in ASEA Member Exchanges Indices (local currency)

37

58%

21%

-7%

-16%

-21%

-26%

-29%

-35%

-36%

-40%

-46%

-56%

Ghana SE

Malawi SE

Dar Es Salam SE

Khartoum SE

Botswana SE

Uganda SE

JSE Ltd

Lusaka SE

Nairobi SE

SE of Mauritius

Namibian SE

Nigeria SE

EGX

26%

ASEA

ataGlimpse

M

ainEconomic

Indicators

M

arketH

ighlights

FinancialStatements

-75% -60% -45% -30% -15% 0% 15% 30% 45% 60% 75%


39/213


Top 5 Member Exchanges by Value Traded in 2008 (USD million)

0 20,000 40,000 60,000 80,000 100,000 120,000

JSE Ltd

EGX

Nigeria SE

Nairobi SE

Namibian SE

140,000

1,085

1,255

20,100

96,825

394,559

ASEA

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

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arket

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40/213

Gains in Value Traded (2008 vs. 2007)

39

Mozambique SE

Lusaka SE

Ghana SE

Malawi SE

EGX

Nigeria SE

Botswana SE

Khartoum SE

Uganda SE

Dar Es Salam SE

SE of Mauritius

JSE Ltd

Nairobi SE

Namibian SE

-50% 0% 50% 100% 150% 200%

-29%

-11%

-7%

-2%

3%

4%

13%

21%

47%

61%

119%

132%

170%

-2%

ASEA

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

A


41/213

Top 5 Member Exchanges by Volume Traded in 2008 (million)

0 50,000 100,000 150,000 250,000

40

ASEA Yearbook 2008

Nigeria SE

JSE Ltd

EGX

Nairobi SE

Lusaka SE

200,000

193,140

83,778

25,490

5,857

1,586

ASEA

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

M

arketHighlights

A


42/213

Gains in Volume Traded (2008 vs. 2007)

41

-150% -100% -50% 0% 50% 100% 150% 200% 250% 300% 350%

290%

202%

90%

69%

54%

40%

20%

18%

6%

-11%

-43%

-55%

-97%

69%

Mozambique SE

Nairobi SE

Ghana SE

Malawi SE

EGX

Botswana SE

Nigeria SE

Namibian SE

JSE Ltd

SE of Mauritius

Dar Es Salam SE

Lusaka SE

Uganda SE

Khartoum SE

ASEA

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

A


43/213

Top 5 Member Exchanges by Market Cap.End of December 2008 (USD billion)

42

ASEA Yearbook 2008

0 20 40 60 80 100 120 140 160

JSE Ltd

EGX

Nigeria SE

Namibian SE

Ghana SE 15

79

81

86

549

SEA

ataGlimpse

M

ainEconomic

Indicators

M

arketHi

ghlights

FinancialStatements

M

arketHighlights

AS


44/213

Gains in Market Capitalization (2008 vs. 2007)

43

-60% -45% -30% -15% 0% 15% 30% 45%

Malawi SE

Dar Es Salam SE

Ghana SE

Mozambique SE

Lusaka SE

Uganda SE

Nairobi SE

Khartoum SE

Nigeria SE

JSE Ltd

Botswana SE

EGX

SE of Mauritius

Namibian SE

38%

36%

17%

-6%

-15%

-19%

-24%

-32%

-39%

-42%

-55%

-32%

-19%

-19%

SEA

ataGlimpse

M

ainEconomic

Indicators

M

arketHi

ghlights

FinancialStatements


45/213

ASE


46/213

Number of Listed Companies (End of December 2008)

45

JSE Ltd

EGX

Nigeria SE

SE of Mauritius

Nairobi SE

Khartoum SE

Ghana SE

Botswana SE

Namibian SE

Lusaka SE

Malawi SE

Dar Es Salam SE

Uganda SE

Mozambique SE

425

373

213

93

56

53

35

31

29

19

15

14

13

6

0 100 200 300 400 500

EA

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

ASEA


47/213

Turnover Ratio (End of December 2008)

46

ASEA Yearbook 2008

0% 10% 20% 30% 40% 50% 60% 70% 80%

JSE Ltd

EGX

Nigeria SE

Nairobi SE

SE of Mauritius

Khartoum SE

Botswana SE

Malawi SE

Mozambique SE

Ghana SE

Uganda SE

Namibian SE

Dar Es Salam SE

Lusaka SE

A

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

71.8%

70.3%

21.9%

11.4%

9.7%

5.0%

3.9%

3.3%

3.3%

2.1%

1.8%

1.4%

0.7%

0.7%

M

arke

tHighlights

ASEA


48/213

Comparative Valuations for ASEA Member Exchanges

P/E Ratio vs. Dividend Yield (End of December 2008)

47

A

ataGlimpse

M

ainEconomic

Indicators

M

arketHighlights

FinancialStatements

Nairobi SE

Ghana SE

Malawi SE

JSE Ltd

SE of Mauritius

EGX

0 1 2 3 4 5 6 7 8 9 10

P/E

DY (%)


49/213


50/213

Bond Exchange of South Africa (BESA)


51/213

BackgroundBond Exchange of South Africa Limited (BESA) is an independent, licensed exchange, constituted

as a public company, and responsible for operating and regulating the debt securities and interest-

rate derivatives markets in South Africa.

BESA was granted its exchange licence in 1996 and over the past twelve years, to end 2008, has

been at the forefront of market development in South Africa. As an exchange, BESA is in the

business of building better markets by providing a range of platforms and services to address theneeds of capital market participants, be it issuers, market makers, traders or investors.

In December 2007, BESA entered a new era, successfully converting from a mutual association to

a public company. This was followed by a well supported rights issue which was concluded in

October 2008, successfully injecting fresh capital into the business and introducing new strategic

partners to the exchange. With demutualisation and capitalisation achieved, BESA has over the

past year, focused attention on furthering capital market infrastructure in South Africa through

the introduction of projects such as BondClear Limited (a comprehensive clearing solution developedin partnership with NASDAQ OMX) and Justrade.com (South Africa's first online binary options

exchange), in addition to continuing to advance the exchange's traditional bond franchise for the

benefit of all market participants.

BESA continues to serve as an effective and proactive regulator of local bond and derivatives

markets, operating within the framework of the Securities Services Act 2004 (SSA) and a set of

rules and directives approved by the Financial Services Board (FSB). The Exchange aims to ensure

that the debt securities it lists and the market participants who trade these securities, adhere toits compliance and regulatory standards.

The South African bond market remains a leader among emerging-market economies. Turnover

reported on BESA in 2008 reached an annual record of R19.2 trillion nominal, topping the record

set the prior year of R13.8 trillion nominal. During September 2008, the Exchange recorded a new

benchmark for monthly domestic bond turnover of R2 trillion nominal. By the end of 2008, there

were 1,102 bond listings on BESA by 100 various issuers, totalling R824 558 million, with a market

capitalisation of R935 188 million. In USD terms, turnover on BESA increased by 18.2% to $2.3trillion. While this was not the most aggressive growth rate recorded among the world's major

exchanges, it resulted in BESA remaining the fourth largest exchange in terms of the turnover

recorded for bond trades in 2008, among those exchanges monitored by the World Federation of

Exchanges.

50

ASEA Yearbook 2008

Bond Exchange of South Africa (BESA)


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dE

xchange

fS.

Africa

BondE

xchange

ofS.

A

frica

BondExcha

ofS.A

fric


53/213

Investors Type in 2008

54%

LocalInvestors

ForeignInvestors

46%

Local Investor vs. Foreign Investors

Trading Statistics

2006 2007

2,296.33

1,962.92

327,319

104

104122.34

69.80

18.77

N/A

N/A

Total Value Traded (USD billion)

Total Volume Traded (billion)

Total Number of Transactions


Number of Traded CompaniesMarket Capitalization End of Year (USD billion)

Market Capitalization as % of GDP

Turnover Ratio (%)

P/E Ratio

DY (%)

Indicators

2,010.74

1,690.25

311,948

91

91122.80

70.64

16.37

N/A

N/A

2008

3,024.62

2,328.69

376,805

117

117113.22

N/A

26.71

N/A

N/A

BondE

xc

hange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS

.A

frica

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bo

ndE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Af

rica

Bon

of

an

ge

ca

Bond

Exchan

ge

of

S.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

fric

a

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

B

ondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS

.A

frica

52

ASEA Yearbook 2008

ndE

xchange

ofS.

Africa

BondExchan

ge

ofS.A

frica

BondExchan

ofS.A

fric


54/213

Bonds Statistics

2006 2007

2,254.50

2,146.90

107.60

Total Value Traded (USD billion)

Value Traded on Government Bonds

Value Traded on Corporate Bonds

Indicators

1,976.68

1,886.92

89.76

2008

2,595.61

2,431.27

164.34

Products

Product

Government and corporate issued bonds.

1 Exchange traded fund that tracks the performance of certain listed bonds

Swaps, FRAs, On demand, Index linked

Bonds

ETF

Derivatives

Description of the Product

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS

.Africa

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

Bo

ndE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Af

rica

Bon

on

ge

a

Bond

Exchan

ge

of

S.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

fric

a

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

B

ondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExc

han

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bond

Exchan

ge

ofS

.A

frica

53

ndE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondExchan

ofS.A

frica


55/213

Indices

Index Name

The ALBI consists of 20 bonds ranking according to capitalisation and liquidity

The COBI consists of corporate bonds

The GOVI consists of 7 government issued bonds

The OTHI consists of all the other bonds outside of the GOVI constituents

ALBI

COBI

GOVI

OTHI

Index Type (Price Index, Return Index,..etc)

Main Index Performance

Index

ALBI

% Change

16.97%258.178

Closing 2007 Closing 2008

301.999

54

ASEA Yearbook 2008

ALBI Performance during 2008

Dec-08Nov-08Oct-08Sep-08Aug-08Jul-08Jun-08May-08Apr-08Mar-08Feb-08Jan-08

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS

.Africa

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

Bo

ndE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Af

rica

Bo ge

a

Bond

Exchan

ge

of

S.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

fric

a

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExc

han

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bond

Exchan

ge

ofS

.A

frica

ondE

xchange

ofS.

Africa

BondExchan

ge

ofS.A

frica

BondExchan

g

ofS.A

frica


56/213

Top Brokerage Firms in 2008

Orbit Securities Co. Ltd.

Tanzania Securities Ltd.

Core Securities Ltd.

Company Name

Solomon Securities Co. Ltd.

Rasilimali Ltd.

Company Name

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

Bo

ndE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xc

hange

ofS.

Af

rica

Bo ge

Bond

Exchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExc

han

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bond

Exchan

ge

ofS

.A

frica

Other Indices Performance

Index

COBI

GOVI

OTHI

% Change

116.481

259.438

252.676


131.652

303.085

295.054

13.02%

16.82%

16.77%

55

BondE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondExchan

g

ofS.A

frica


57/213

February 2008

Development Bank of Southern Africa lists new fixed rate note DV22 for R1 billion nominal

March 2008

Airports Company Limited issues commercial paper to the value of R1.2 billion nominal

April 2008

Inguza Investments issues commercial paper programme totalling R15 billion nominal

(authorised)

African Development Bank raises R2 billion nominal Fixed Rate Notes

Auto Series Asset Backed Securitisation R1.2 billion nominal listed

Capitec Bank Limited first micro lender to list Domestic Medium Term Note Programme

(DMTN) with R2 billion nominal (authorised)

June 2008

Rolled out a limited PMO (Project Management Office)

City of Johannesburg raises R2.6 billion nominal through fixed rate notes, COJ05 and COJ06

SA National Roads Agency issues R10 billion nominal (authorised) through a DMTN

programme

July 2008 Mercedes Benz lists R18 billion nominal (authorised) DMTN programme

August 2008

Fintech lists R797 million nominal Equipment Receivables Securitisation

September 2008

BESA hits record monthly turnover of R2 trillion nominal BESA launches Justrade.com, South Africa's first online binary options exchange

BESA signs agreements with Nasdaq OMX for the establishment of BondClear

16 September 2008 - BESA is awarded the accolade for Most Innovative Capital Markets

Regulator in Africa at the Africa Investor Index Series Awards in New York

Achievements

56

ASEA Yearbook 2008

BondE

x

change

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xc

hange

ofS.

A

frica

Be

Bond

Exchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExc

han

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS

.A

frica

BondE

xchange

ofS.

Africa

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica


58/213

October 2008

8 October 2008 - BESA successfully completes its capitalisation transaction through a rights

issue and introduction of new strategic partners. R80.8 million in fresh capital injected into

the exchange

31 October 2008 - completed the formulation of BESA's IT strategy going forward

Following the successful rights issue, NZX becomes the largest shareholder in BESA

JSE Limited puts forward an offer to purchase 100% of the issued shares in BESA

November 2008

Completed the IT handover with Peresys

Equipment Rentals lists R842 million nominal Equipment Receivables Securitisation

Transnet Limited issues R800 million nominal fixed rate note under DMTN Programme

December 2008

31 December 2008 - Record annual bond market turnover of R19.2 trillion nominal for

2008 (a 39% increase on 2007's performance of R13.8 trillion nominal)

City of Johannesburg raises R900 million

As at December 2008, there were eleven contributors of data to BESABONDS which BESA

intends building upon in order to rapidly increase the amount of data collected through

the platform for the purposes of disseminating it to a broader audience in 2009, as a means

of contributing towards increased price transparency in the local bond market. Majorimprovements are expected in 2009 with real time data feeds for yields and indices being

made available to data vendors. Major improvements are also expected with regards to the

performance and quality of these feeds.

57

BondE

x

change

ofS.A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xc

hange

ofS.

A

frica

Be

Bond

Exchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bo

ndExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExc

han

ge

ofS.A

f

rica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS

.A

frica

BondE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondExchan

ge

ofS.A

frica


59/213

The sub-prime mortgage crisis that reared its head in the USA during the latter part of 2007

sent global financial markets into a spin. This led to the demise of well established and

renowned global financial institutions and investment banks in September 2008.

South Africa, as an emerging market, was fairly sheltered from the debris of this storm in

2008. The turmoil in the global financial markets did, however, have some impact on the

domestic economy. As a result, the expansion of the local primary bond market came under

pressure particularly towards the latter part of 2008, owing to a combination of increased

risk aversion and higher debt spreads. Although BESA's bond listings showed a growth of

5.6% in 2008 y-o-y, this was the slowest growth rate recorded since 2002. The slowdown in

listings growth was affected primarily by contractions in the categories of securitisations and

other corporates such as mining, insurance, food, telecommunications, transport companies

and health but excluding banks. The redemptions in these categories proved to be higher

than the issuances recorded. The level of short-term borrowing in the form of commercial

paper showed an increase, particularly in Q3 and Q4 of 2008 as corporates became more

inclined towards these instruments in the wake of the negative sentiments filtering down to

the local financial markets. In contrast, issuance by government and state-owned enterprises

propped up growth in total listings.

The stresses experienced in global financial markets also filtered through to the domestic

secondary bond market. The third and fourth quarters of 2008 were, for the most partcharacterized by higher outflows of capital from the domestic bond market as foreigners fled

to the relative safety of US Treasuries. The highest outflow by foreign investors in 2008 was

recorded in October at R20.6 billion; it was, however, followed by net inflows of R4.8 billion

in November.

The increased activity on the secondary market, however, boosted the total turnover observed

by BESA in 2008. Turnover came in at a record R19,2 trillion in 2008, a 39% increase from2007. Repo transactions also contributed significantly to the higher turnover recorded on

BESA during 2008, accounting for 62% of the total. The proportion of repo transactions

recorded was driven by the higher demand for liquidity in the market. This was particularly

evident in September when the impact of the global crisis on the financial markets was at its

peak.

The Effect of the Global Financial Crisis on BESA

58

ASEA Yearbook 2008

BondE

x

change

ofS.A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchan

ge

ofS.

A

fric

a

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xc

hange

ofS.

A

frica

BondExchan

ge

ofS

.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bo

ndExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExc

han

ge

ofS.A

f

rica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS

.A

frica

BondE

xchange

ofS.

Africa

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica


60/213

During the fourth quarter of 2008, BESA received a purchase offer from the JSE Limited,

which was approved by BESA's shareholders in February 2009. The transaction is currently

being subjected to the scrutiny of the South African Competition Commission. The Commission

is a statutory body constituted in terms of the Competition Act, No 89 of 1998 by the

Government of South Africa and is empowered to investigate, control and evaluate restrictive

business practices, abuses of dominant positions and mergers in order to ensure equity and

efficiency in the South African economy.

If approved, it is expected that the merger would result in BESA being fully integrated into

the JSE, as a subsidiary, possibly by June 2009. The subsidiary would continue to focus on

the development of the South African debt markets. However, the expertise of both exchanges

would be utilised to develop a centralised market in fixed income derivatives in consultation

with market participants. A consultative process would also be employed to assess the

current functioning of the local debt market with a view to introducing improvements. The

latter might centre on pricing transparency, trading methodology, clearing, and a review

of existing products.

In the interim, BESA continues to operate business as usual. Should the merger not be

approved by the Competition Authorities, BESA would continue to pursue its expansionary

plans, utilising the capital raised in 2008 to fund and realise key projects. Among such

projects is the development of a clearing facility for the debt market, initially targetingderivatives products, in partnership with Nasdaq OMX. This is the BondClear project, which

was launched (in 2007) but is not yet active.

From an operational perspective, domestic financial markets, like global financial markets,

are expected to be sluggish in 2009, with negative consequences for the growth of debt

listings on the Exchange and turnover volumes in the secondary market. However, it is

hoped that BESA's revised pricing strategies will minimise the negative financial impact onthe Exchange. Generally, the next couple of years are expected to be challenging for domestic

capital markets and their growth trajectory.

Ongoing Plans

BondE

x

change

ofS.A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchange

of

S.

Africa

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

fric

a

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

Africa

B

ondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xc

hange

ofS.

A

frica

BondExchan

ge

ofS

.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bo

ndExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

f

rica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondE

xchan

ge

ofS.Africa

59



61/213

BackgroundThe Botswana Stock Exchange is Botswanas national stock exchange given the responsibility to

operate and regulate the equities and fixed interest securities market. Formally established in

1989, the BSE continues to be pivotal to Botswanas financial system, and in particular the capital

market, as an avenue on which government, quasi- government and the private sector can raise

debt and equity capital. The BSE plays host to the most preeminent companies doing business in

Botswana. These companies represent a spectrum of industries and commerce, from Banking and

Financial Services to Wholesaling and Retailing, Tourism and Information Technology.

The main law which governs all the activities between the Exchange and its members, the proceedings

of the main committee and its composition; the relationship between the Minister and the Exchange

together with the relations between the Registrar, the exchange and members of the exchange is

the Botswana Stock Exchange Act No 11 of 1994.

The members have promulgated Rules (Members Rules) which provide for the requirements to be

fulfilled for the securities listed and trading on the Exchange. Members Rules provide as the mainobjective thereof, to operate a Stock Exchange in Botswana with due regard to the public interest,

and to maintain fair and efficient dealing in securities for the protection of investors and to regulate

the affairs of members.

In addition, the Exchange has a set of listing requirements which provide the pre-listing requirements

and post listing requirements to be observed by the issuers of listed Securities. The emphasis is

to make sure issuers disclose as much information to the public and investors so that the latter

can make informed investment decisions.

60

ASEA Yearbook 2008


62/213

e

Botsw

ana

SE

BondE

xchange

ofS.

A

frica

BondExchan

ge

ofS.A

frica

B


63/213

BondE

x

change

ofS.A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchange

of

S.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xcha

nge

ofS.

A

fric

a

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

B

ondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchan

ge

ofS

.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bo

ndExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExch

an

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondE

xchan

ge

ofS.

Africa

Trading Statistics

2006 2007

137.66

124.89

6,378

31

315.44

39.93

2.88

15.60

3.10

Total Value Traded (USD million)

Total Volume Traded(million)

Total Number of Transactions


Number of Traded CompaniesMarket Capitalization End of Year (USD billion)*

Market Capitalization as % of GDP

Turnover Ratio (%)

P/E Ratio

DY (%)

Indicators

71.58

87.25

4,172

31

314.09

28.40

1.76

16.30

3.80

2008

155.06

192.71

5,272

31

313.68

40.70

3.86

NA

NA

* For Domestic Companies

62

ASEA Yearbook 2008

e

BondExchan

ge

ofS.A

frica

Botsw

ana

SE

B


64/213

Products

Product

Common Stocks

Government and Corporate bonds

Stocks

Bonds

Description of the Product

Number of Companies Included in Each Sector

Sectors Traded

Sectors Traded on the Stock Exchange

4

6

5

3

9

0

1

1

1

1

Banking

Financial Services and Insurance

Retail, Wholesaling and Consumer Staples

Property and Property Trust

Mining and Material

Health Care and Emergency Services

Security Services

Information Technology

Energy

Transport and Tourism

2008

Sector NameMost Active Sectors in 2008

Banks

Financial Services and Insurance

Retail, Wholesaling and Consumer Staples

1

2

3

Sector Name

Mining and Material

Property and Property Trust

4

5

Bonds Statistics

30.34

30.18

0.16

Total Value Traded (USD million)

Value Traded on Government Bonds

Value Traded on Corporate Bonds

N/A

N/A

N/A

73.23

69.23

4.00

2006 2007Indicators 2008

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

Bond

Exchange

of

S.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xcha

nge

ofS.

A

fric

a

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

B

ondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchang

ofS.

A

frica

ondExchan

ge

ofS

.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bo

ndExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExch

an

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondE

xchan

ge

ofS.

Africa

63

ge

Botsw

ana

SE

BondE

xchange

ofS.

A

frica

BondExchan

ge

ofS.A

frica

Bo


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Indices

Index Name

Price Index

Price Index

Price Index

Return Index

Return IndexReturn Index

DCI

FCI

ACI

LASI

DFSIFRSI

Index Type (Price Index, Return Index,..etc)

DCI Performance during 2008

Dec-08Nov-08Oct-08Sep-08Aug-08Jul-08Jun-08May-08Apr-08Mar-08Feb-08Jan-08

Main Index Performance

Index

DCI

% Change

-16.46%8,421.60


7,035.50

6000

7000

8000

9000

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

of

S.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xcha

nge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

B

ondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

x

chang

ofS.A

frica

ondExchan

ge

ofS

.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

Bo

ndExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExch

ange

ofS.A

fr

ica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondExchan

ge

ofS.A

frica

BondE

xchan

ge

ofS.

Africa

64

ASEA Yearbook 2008

nge

a

BondE

xchange

ofS.

A

frica

BondExchan

ge

ofS.A

frica

Botsw

ana

SE

Boo


66/213

Other Indices Performance

Index

FCI

ACI

% Change

2,200.90

2,377.56


1,191.99

1,328.94

-45.84%

-44.10%

Botswana Stock Exchange has launched 3 new indices, LASI, DFSI, and FRSI in February 2008.

IPOs

Oct-08Funeral Service Group Limited 4.80

DateCompany Value (USD million)

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

of

S.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xcha

nge

ofS.

A

frica

BondE

xchange

ofS.

A

frica

BondE

xchange

ofS.

A

frica

B

ondE

xchange

ofS.

A

Documents

ASEA Yearbook2008