2005 asea yearbook.pdf
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ASEA Member Exchanges
Abidjan Stock Exchange
Bond Exchange of South AfricaBotswana Stock Exchange
Cairo & Alexandria Stock Exchanges
Casablanca Stock Exchange
Dar-Es-Salam Stock Exchange
Ghana Stock Exchange
JSE Limited
Lusaka Stock ExchangeMalawi Stock Exchange
Mozambique Stock Exchange
Nairobi Stock Exchange
Namibian Stock Exchange
Stock Exchange of Mauritius
Stock Exchange of Swaziland
The Nigerian Stock ExchangeUganda Securities Exchange
Zimbabwe Stock Exchange
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Table of Contents
Chairmans Letter
ASEA Executive Committee
ASEA at a Glimpse
Main Economic Indicators (ASEA Member Countries)
Market Highlights (ASEA Member Stock Exchanges)
Member Exchanges Profile
Botswana Stock Exchange
Cairo & Alexandria Stock Exchanges
Casablanca Stock Exchange
Dar-Es-Salam Stock Exchange
JSE Limited
Lusaka Stock Exchange
Malawi Stock Exchange Mozambique Stock Exchange
Nairobi Stock Exchange
Namibian Stock Exchange
Swaziland Stock Exchange
The Stock Exchange of Mauritius
Uganda Securities Exchange
Zimbabwe Stock Exchange
Bond Exchange of South Africa
ASEA Audited Financial Statements - June 2005
2
5
7
11
19
35
36
40
53
58
62
71
7880
82
92
98
103
110
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Chairmans Letter
The African Securities Exchanges Association (ASEA) is pleased to present the first issue of its annual Yearbook, whichserves as a work of reference for African member securities markets, by providing consolidated information on ASEAmembers in a single source.
Founded in 1993, as a non-profit organization limited by guarantee in Kenya, ASEA aims at establishing systematic
mutual cooperation, exchange of information as well as harmonization of market standards, to enable its members toattain a greater role in the competitive global market environment.
Throughout 2005, ASEA Working Committee has worked on reviewing the Memorandum and Articles of Associationto enable the association to function more effectively and provide value to its members, preparing and reviewing ASEAsustainability budgets and investment policy.
ASEA has also worked on improving information and promotional avenues by upgrading its website with more information
about the association as well as trading statistics and profiles about member countries. This first issue of ASEA Yearbookwas also developed, to further enhance the level of transparency about the African members.
Moreover, ASEA is holding annual conferences hosted by one of the members, each year. The 9th ASEA conferencewas hosted by Cairo & Alexandria Stock Exchanges in September 2005, under the theme Accelerating Developmentin African Securities Markets.
From another perspective, ASEA is trying to coordinate with regional bodies such as the United Nations Economic
Commission for Africa (UNECA) and the New Partnership for Africa Development (NEPAD), to promote the role of theAfrican securities exchanges in capital mobilization and economic development strategies.
ASEA has also grown in membership and currently comprises 18 exchanges in 17 African countries. An applicationfor membership from the nascent Bourse des Valeurs Mobilieres de LAfrique Centrale (BVMAC) was recently approvedby ASEA. Other potential members were also approached by ASEA members to give them assistance in setting up
Maged ShawkyPresident
African Securities Exchanges Association
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stock exchanges. These include the Democratic Republic of Congo, Angola, Rwanda, Madagascar and Lesotho.
To establish a structured approach towards fulfilling ASEA mission and ensure its continuity, the association is in theprocess of developing a 5-year business plan, in cooperation with Kenya Institute of public Policy Research & Analysis
(KIPRA). Our focus will be on areas of creating awareness and visibility for the region, promoting stronger corporategovernance, holding joint development programs and bilateral visits, supporting African countries in the establishmentof stock exchanges and development of financial products as well as harmonizing markets regulations to pave theway for cross-border listing and facilitate the process of financial integration within the region.
We will strive to make the association a central reference point for the regional markets, by offering member exchangesguidance in their business strategies.
Individually, member exchanges continued to work hard to step up global challenges by developing regulations,expanding their services, promoting corporate governance as well as enhancing their operational infrastructure.
To date, three ASEA members; JSE limited, Cairo & Alexandria Stock Exchanges and Stock Exchange of Mauritius, haveattained the membership status of the World Federation of Exchanges (WFE), reflecting their compliance with internationalstandards and market principles.
On the trading front, ASEA member markets witnessed an impressive performance in 2005, with positive annualised
returns on members indices ranging from 146 percent in Cairo & Alexandria Stock Exchanges to 13 percent in theStock exchange of Mauritius. The member markets concluded 2005 with a total of 1468 companies listed on theirboards, recording a total market capitalization of US$ 845 billion; a 28 percent growth over 2004. The gain in returnwas accompanied by higher trading volume and value which leapt by a robust 27 percent and 21 percent to culminateat 72 billion and US$ 250 billion, respectively.
Finally, I would like to seize this opportunity to express my sincere appreciation and to extend my grateful thanks toall our members for their commitment and contributions. Special thanks are also due to the Secretariat for their efforts
in maintaining a cohesive organization. I am confident that together we will achieve our worthwhile goals.
ASEA Yearbook 2005
Maged Shawky
President
African Securities Exchanges Association
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ASEA Executive Committee
Office Bearers
PresidentMr. Maged Shawky Sourial
Cairo and Alexandria Stock Exchanges (CASE)
Member
Mr. Joseph ChikolwaLusaka Stock Exchange (LuSE)
Member
Mr. Chris MwebesaNairobi Stock Exchange (NSE)
Member
Mr. Geoff RothschildJSE Limited
Member
Mr. Jonathan NjauDar-Es-Salaam Stock Exchange (DSE)
First Vice President
Mr. Ekow AfedzieGhana Stock Exchange (GSE)
Second Vice President
Mr. Sunil BenimadhuStock Exchange of Mauritius (SEM)
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ASEA Member Countries
Egypt
Ghana
CoteDvoire
Nigeria
Uganda Kenya
Tanzania
MozambiqueZambia
Malawi
Namibia Zimbabwe
Botswana
South Africa
Morocco
Swaziland
Mauritius
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ASEA
ASEA AtA Glimpse
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African Securities
Exchanges AssociationASEA Background
ASEA is a non-profit company limited by guarantee that was found in Kenya on the 13th of November 1993,
according to Chapter 486 of the Laws of Kenya, with the aim of establishing systematic mutual cooperation
and exchange of information among its members.
The association started with Nairobi Stock Exchange as the first member in 1993, followed by Mauritius, Uganda
and Dar-es-Salam Stock Exchanges in the nineties. The association is currently represented by 18 regional
exchanges in 17 countries.
ASEA Mission Statement
ASEA provides a forum for mutual communication, exchange of information, cooperation and technologicalassistance among its members, to facilitate the process of financial integration within the region for the effective
mobilization of capital to accelerate economic development of Africa.
ASEA supports members in the establishment of Stock Exchanges and the development of financial instruments.
The association also assists in promoting the development of standards of training and professionalism amongst
members and other market players, standards of listing, trading and settlement of securities, the products and
services of Africas capital markets as well as the establishment of a data bank and information system.
Together with enhancing member exchanges joint programs, the association aims to harmonize standards for
market principals in the region.
ASEA Membership
The membership of the association is open to any Securities Exchange or nascent Stock Exchange located in
the African region after filling the admission application and getting the Executive Committee approval.
On 1st August 2005, the ASEA Secretariat received an application for membership from the Bourse des Valuers
Mobilieres de L' Afrique Centrale (BVMAC), which introduced itself as a private organization owned by some
of the largest financial institutions and industries of the Central African region. Through the CEMAC (Central
ASEA At A Glimpse
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Africa Economic and Monetary Union) Treaty, the six governments of the CEMAC (Cameroon, Congo, Gabon,
Equatorial Guinea, Chad and Central African Republic), have given BVMAC the exclusive mandate to animate
and develop a regional stock exchange.
At the 9th ASEA Executive Committee meeting, the application of the BVMAC to be a member of ASEA wasaccepted, on the condition that the BVMAC kept the ASEA informed of developments and notifies the ASEA
when the BVMAC is finally incorporated as a regional securities exchange and is operational.
ASEA Working Committee Meetings
Three ASEA Working Committee meetings took place in 2005, which were hosted by Dar-es Salam Stock
Exchange, JSE Limited and Cairo & Alexandria Stock Exchanges on the 26th of January 2005, the 13th of May
2005 and the 10th of September 2005, respectively. The meetings have mainly focused on the following issues:
- The review of the Memorandum and Articles of Association to enable ASEA to function more effectively and
to provide value for its members.
- The preparation and review of ASEA sustainability budgets and investment policy.
- The preparation of a 5-year business plan for ASEA, with the cooperation of Kenya Institute of Public Policy
Research and Analysis (KIPRA).
- Improving information and promotional avenues for ASEA (upgrade website, developing annual yearbooks,holding regional workshops).
- Approaching potential members and development of procedures for admission.
- Leveraging on regional bodies such as the United Nations Economic Commission for Africa (UNECA) and the
New Partnership for Africa Development (NEPAD) to promote the role of African stock exchanges in economic
development, by sharing resources and collaborating on mutually beneficial initiatives.
- Changing the name of the organization from African Stock Exchanges Association to African Securities
Exchanges Association.
ASEA Conferences
One of the key activities of ASEA is holding annual conferences, which are hosted by different members almost
each year since its inception in 1993, whereby issues relevant to the growth of the regional securities markets
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ASEA
ASEA Member Countries
Main EconomicIndicators
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2002/2003 2003/2004 2004/2005
70.0
69.04
986
3.13,902
10.5
5.8
69.3
61.95
894
17.3407
11.1
6.2
Population (million) *
Real GDP (billion)
Real per capita GDP
Inflation Rate (%)Net FDI (million)
Unemployment Rate (%)
Exchange Rate (LE/USD)
68.0
60.86
895
NA701
10.5
6.0
Indicators
* Excluding Egyptians living abroad
Egypt (USD)
Botswana2003 2004 2005
1.64
9.05
10,500NA
NA
23.8
5.06
NA
4.10
2,2657.00
2.53
NA
4.69
Population (million)
Real GDP (billion)
Real per capita GDPInflation Rate (%)
FDI (billion)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
NA
3.66
2,0689.20
2.25
NA
4.93
Indicators
(USD)
Economic Indicators
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Kenya (USD)2003 2004 2005
34.30
19.40
NA10.50
NA
75.38
33.18
16.11
430.3311.62
46.00
79.28
Population (million)
Real GDP (billion)
Real per capita GDPInflation Rate (average annual %)
FDI (million)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
32.23
15.04
431.339.82
81.00
75.93
Indicators
Over 50% unemployment
2003 2004 2005
12.1
NA
NA
15.4
NA
NA
123.7806
11.9
NA
NA
11.5
NA
NA
109.4382
Population (million)
Real GDP
Real per capita GDP
Inflation Rate (%)
FDI
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
10.8
NA
NA
9.6
NA
NA
97.9188
Indicators
Malawi (USD)
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2003 2004 2005
1.24
NA
5,1305.6
1.37
9.5
30.25
1.23
NA
5,1503.9
1.80
8.5
27.98
Population (million)
Real GDP
Real per capita GDPInflation Rate (%)
FDI (billion)
Unemployment Rate (mid-year) (%)
Exchange Rate (local currency versus USD)
1.22
NA
4,5505.1
1.97
7.7
26.23
Indicators
Mauritius (USD)
2003 2004 2005
38.7
49
NA
1.0NA
NA
9.249
31.1
54
NA
2.0NA
NA
8.211
Population (million)
Real GDP (billion)
Real per capita GDP
Inflation Rate (%)FDI
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
30.6
49
NA
1.5NA
NA
8.762
Indicators
Morrocco (USD)
Economic Indicators
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2003 2004 2005
19.424
23.38
1,3007.8
NA
21
24,300
18.071
21.00
1,11712.8
228.7
21
22,581
Population (million)
Real GDP (billion)
Real per capita GDPInflation Rate (%)
FDI (million)
Unemployment Rate *1997 est. (%)
Exchange Rate (local currency versus USD)
17.481
19.20
1,00015.2
NA
21
24,000
Indicators
(USD)Mozambique
2003 2004 2005
2.03
5.88
2,895
3.4
230
40
6.345
2.00
5.70
2,843
4.9
67
NA
5.670
Population (million)
Real GDP (billion)
Real per capita GDP
Inflation Rate (%)
FDI (million)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
1.97
5.50
2,794
3.6
NA
NA
6.651
Indicators
Namibia (USD)
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2003 2004 2005
46.9
242.2
5,1643.7
NA
26.5
6.29
44.8
252.6
5,6384.3
64.7
29.2
5.49
Population (million)
Real GDP (billion)
Real per capita GDPInflation Rate (%)
FDI (billion)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
44.8
191.9
4,2836.8
46.3
31.2
6.55
Indicators
South Africa (USD)
2003 2004 2005
1.136
2.117
1,863
4.7
NA
40
6.32
1.105
1.615
1,462
3.4
5.22
NA
6.45
Population (million)
Real GDP (billion)
Real per capita GDP
Inflation Rate (%)
FDI (million)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
1.081
1.607
1,487
7.4
4.78
NA
7.56
Indicators
Swaziland (USD)
Economic Indicators
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2003 2004 2005
35.0
NA
NA4.8
273.2
NA
1,165.5
35.0
2,008.2
57.04.2
260.2
NA
1,043.0
Population (million)
Real GDP (million)
Real per capita GDPInflation Rate (%)
FDI (million)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
34.2
1,844.7
53.93.4
247.8
NA
1,063.6
Indicators
Tanzania (USD)
2003 2004 2005
26.8
8.3
311.9
3.5
NA
NA
1,816.0
25.1
8.1
304.4
4.9
NA
NA
1,739.1
Population (million)
Real GDP (billion)
Real per capita GDP
Inflation Rate (%)
FDI
Unemployment Rate (%)
Exchange Rate (Ushs per USD)
24.4
6.6
253.5
5.9
NA
NA
1,943.2
Indicators
(USD)Uganda
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2003 2004 2005
11.4
901.0078.75
15.9
259
NA
3,500
11.1
638.1357.54
17.5
239
NA
4,700
Population (million)
Real GDP (million)Real per capita GDP
Inflation Rate (%)
FDI (million)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
10.7
636.0959.20
17.2
172
NA
4,475
Indicators
Zambia (USD)
2003 2004 2005
13.5
NA
NA
360
NA
76
84588
13
19.1
2000
350
NA
74
5729
Population (million)
Real GDP (million)
Real per capita GDP
Inflation Rate (%)
FDI (million)
Unemployment Rate (%)
Exchange Rate (local currency versus USD)
13
19.5
2000
365
200
72
824
Indicators
Zimbabwe (USD)
Economic Indicators
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ASEA
Member Stock Exchanges
MarketHighlights
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Value Traded(USD million)
Average MonthlyTraded Co.
Market Capas % of GDP
ExchangesNumber ofListed Co.
Volume Traded(million)
29.3
55.2
77
0.1
235.4
28.65
14.7
10.4
31.6
NA
42.6
NA
22.3
NA
NA
53
186
8
388
NA
9
6
NA
21
35
2
NA
80
Botswana SE
Casablanca SE
CASE
Dar-Es- Salam SE
JSE Ltd
Luska SE
Malawi SE
Mozambique SE
Nairobi SE
Namibian SE
SE of Mauritius
Swaziland SE
Uganda SE
Zimbabwe SE
47.19
16,060
27,937
13.36
203,300
19.58
7.59
34
484.5
529
179.82
0.03
3.1
760
28
54
744
8
388
13
10
13
48
28
41
6
7
80
44.16
440
5,311
29.69
54,510
215.33
61.56
8.5
874.2
121
306.28
0.06
14
9600
Market Cap(USD billion)
2.65
27.28
79.35
2.28
570
2.5
9.05
0.24
6.14
121.27
2.65
0.20
1.85
20
TurnoverRatio
1.78%
14.87%
31.10%
0.58%
36.00%
0.62%
3.07%
0.10%
7.90%
0.44%
5.68%
1.00%
0.17%
NA
2005 Market Highlights
Comparative Market Statistics (2005 vs. 2004)
% Change
21.31%
27.43%
28.00%
-3.86%
Value Traded (USD million)
Volume Traded (million)
Market Capitalization (USD billion)
Number of Listed Companies
205,573
56,139
660
1527
2004 2005
249,375
71,535
845
1468
ASEA Members Trading Aggregates *
* Excluding Bond Exchange of South Africa (BESA)
Market Highlights
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% ChangeExchanges
194.54%
110.24%100.00%
73.96%
63.82%
59.07%
51.52%
39.54%
21.93%
19.83%
14.22%10.65%
8.46%
1.60%
Dar-Es- Salam SE
CASEZimbabwe SE
Uganda SE
Mozambique SE
Nairobi SE
Luska SE
Malawi SE
JSE Ltd
Namibian SE
Botswana SESE of Mauritius
Casablanca SE
Swaziland SE
0.77
37.7410.00
1.06
0.15
3.86
1.65
6.49
467.50
101.21
2.322.40
25.15
0.19
Market Cap (USD billion)
2004 2005
2.28
79.3520.00
1.85
0.24
6.14
2.5
9.05
570.00
121.27
2.652.65
27.28
0.20
% ChangeMemberExchange
1545.18%
146.29%
80.57%74.66%
57.60%
55.42%
42.98%
34.88%
31.87%
22.49%
13.12%
-0.46%
Zimbabwe SE
CASE
Uganda SEBotswana SE
Luska SE
Malawi SE
JSE Ltd
Nairobi SE
Namibian SE
Casablanca SE
SE of Mauritius
Swaziland SE
1,097,492.53
2567.99
381.87693.63
506.67
583.48
12656.86
2945.58
425.93
4521.98
710.77
157.40
Index Closing (end of year)
2004 2005
18,055,724.01
6324.70
689.541211.49
798.52
906.85
18096.54
3973.04
561.68
5539.13
804.03
156.68
Index Name
Industrials
CASE 30
USE All Share IndexAll Companies Index (ACI)
LuSE All Share (LASI)
MASI
FTSE/JSE All Share
NSE 20 Share Index
NSX Overall Index
MASI
SEMDEX
All Share Index
Return on Index
Market Capitalization
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% ChangeExchanges
1880.6%
310.3%
174.6%83.8%
72.1%
23.4%
21.6%
17.6%
8.3%
5.0%
-12.6%
-25.0%-37.7%
-52.1%
Uganda SE
CASE
Luska SECasablanca SE
Nairobi SE
Malawi SE
SE of Mauritius
Namibian SE
JSE Ltd
Botswana SE
Mozambique SE
Swaziland SEZimbabwe SE
Dar-Es- Salam SE
0.16
6,808
7.138,740
281.58
6.15
147.84
450
187,800
44.94
39
0.041,220
27.88
Value Traded (USD million)
2004 2005
3.1
27,937
19.5816,060
484.5
7.59
179.82
529
203,300
47.19
34
0.03760
13.36
Value Traded
Volume Traded
% ChangeExchanges
3660.55%
144.37%
118.20%
64.40%
43.28%
39.80%
29.54%
19.97%
1.89%-13.10%
-23.90%
-24.73%
-26.08%
-44.33%
Uganda SE
Casablanca SE
CASE
SE of Mauritius
Zimbabwe SE
Nairobi SE
Dar-Es- Salam SE
JSE Ltd
Luska SESwaziland SE
Namibian SE
Mozambique SE
Botswana SE
Malawi SE
0.37
179.85
2,434
186.30
6,700
625.33
22.92
45,438
2110.07
159
11.29
59.74
110.59
Volume Traded (million)
2004 2005
14
440
5,311
306.28
9600
874.2
29.69
54,510
215.330.06
121
8.5
44.16
61.56
Market Highlights
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2005 Gains in ASEA Stock Exchanges Indices (in local currency) *
Swaziland SE
SE of Mauritius
Casablanca SE
Namibian SE
Nairobi SE
JSE Ltd
Malawi SE
Luska SE
Botswana SE
Uganda SE
CASE
0% 25% 50% 75% 100% 125% 150% 175%
ASEA Yearbook 2005
23
* Zimbabwi SE index realized 1545.2% gains in 2005 compared to 2004.
-0.5%
13.1%
22.5%
31.9%
74.7%
80.6%
146.3%
55.4%
57.6%
43.0%
34.9%
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Top 5 Stock Exchanges by Value Traded in 2005 (USD million)
203,300
27,937
16,060
760
529Namibian SE
Zimbabwe SE
Casablanca SE
CASE
JSE Ltd
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Market Highlights
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Gains in Value Traded (2005 vs. 2004)
0% 50% 100% 150% 200% 250% 300% 350%
1881%
5%
8%
22%
18%
310%
175%
84%
72%
23%
-13%
-25%
-38%
-52%Dar-Es- Salam SE
Zimbabwe SE
Swaziland SE
Mozambique SE
Botswana SE
JSE Ltd
Namibian SE
SE of Mauritius
Malawi SE
Nairobi SE
Casablanca SE
Luska SE
CASE
Uganda SE
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Top 5 Stock Exchanges by Volume Traded in 2005 (million)
874
5,311
9,600
440
54,510
Casablanca SE
Nairobi SE
CASE
Zimbabwe SE
JSE Ltd
0 2,500 5,000 7,500 10,000 12,500 15,000
Market Highlights
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Gains in Volume Traded (2005 vs. 2004)
Malawi SE
Botswana SE
Mozambique SE
Namibian SE
Swaziland SELuska SE
JSE Ltd
Dar-Es- Salam SE
Nairobi SE
Zimbabwe SE
SE of MauritiusCASE
Casablanca SE
Uganda SE
0% 30% 60% 90% 120% 150% 180%
20%
30%
40%
43%
64%118%
144%
3661%
-44%
-26%
-25%
-24%
-13%
2%
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Top 5 Stock Exchanges by Market Cap End of December 2005 (USD billion)
27.3
79.4
121.3
570.0
20.0
0 50 100 150 200 250
Zimbabwe SE
Casablanca SE
CASE
Namibian SE
JSE Ltd
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Gains in Market Capitalization (2005 vs. 2004)
Swaziland SE
Casablanca SE
SE of Mauritius
Botswana SE
Namibian SEJSE Ltd
Malawi SE
Luska SE
Nairobi SE
Mozambique SE
Uganda SEZimbabwe SE
CASE
Dar-Es- Salam SE
0% 30% 60% 90% 120% 150%
8%
11%
14%
20%22%
40%
52%
59%
64%
74%100%
110%
195%
2%
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Market Cap as % of GDP (End of December 2005)
0.1%
14.7%
22.3%
28.7%
29.3%
31.6%
42.6%
55.2%
77.0%
235.4%
10.4%
0% 20% 40% 60% 80% 100% 120%
Dar-Es- Salam SE
Mozambique SE
Malawi SE
Uganda SE
Luska SE
Botswana SE
Nairobi SE
SE of Mauritius
Casablanca SE
CASE
JSE Ltd
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Number of Listed Companies (End of December 2005)
0 100 200 300 400 500
Swaziland SE
Uganda SE
Dar-Es- Salam SE
Malawi SE
Luska SE
Mozambique SE
Botswana SE
Namibian SE
SE of Mauritius
Nairobi SE
Casablanca SEZimbabwe SE
JSE Ltd
CASE
6
7
8
10
13
13
28
28
41
48
5480
388
744
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Average Monthly Traded Companies in 2005
2
6
8
9
21
35
53
80
186
388
0 40 80 120 160 200
Swaziland SE
Mozambique SE
Dar-Es- Salam SE
Malawi SE
Namibian SE
SE of Mauritius
Casablanca SE
Zimbabwe SE
CASE
JSE Ltd
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Turnover Ratio (%) (End of December 2005)
Mozambique SE
Uganda SE
Namibian SE
Dar-Es- Salam SE
Luska SE
Swaziland SE
Botswana SE
Malawi SE
SE of Mauritius
Nairobi SE
Casablanca SE
CASE
JSE Ltd
0.2%
0.4%
0.6%
0.6%
1.0%
1.8%
3.1%
5.7%
7.9%
14.9%
0.1%
31.1%
36.0%
0% 10% 20% 30% 40%
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ASEA
Member
ExchangesProfile
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Botswana Stock Exchange
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 forthe securities listed and trading on the Exchange. Members Rules provide as the main objective 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.
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Trading Statistics
2003 2004 2005
47.1947.19
-
44.1644.16
-
2.69
28
NA
NA
2.65
29.3
1.78
44.9444.94
-
59.7459.74
-
1.91
25
NA
NA
2.32
56.6
1.94
41.1741.17
-
77.4177.41
-
2.38
25
NA
NA
1.94
53.0
2.32
Trading StatisticsIndicators
Total Value Traded (USD million)Value Traded on Listed Securities
Value Traded on Unlisted Securities
Total Volume Traded (million)Volume of Listed Securities Traded
Volume of Unlisted Securities Traded
Total Number of Transactions (billion)
Number of Listed Companies
Number of Traded Companies
Average Monthly Traded Companies
Market Capitalization End of Year (USD billion)
Market Capitalization as % of GDP
Turnover Ratio (%)
Number of Companies Included in Each Sector
Sectors Traded
Sectors Traded on the Stock Exchange
4
42
5
2
1
1
7
0
1
1
4
42
6
2
1
1
4
1
1
1
Banking
Financial Services and InsuranceTourism
Retailing, Wholesaling and Consumer Staples
Property and Property Trusts
Healthcare and Emergency Services
Energy
Mining and Materials
Transport Services
Information Technology
Security Services
4
42
6
2
1
1
2
1
1
1
2003 2004 2005
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Issue Value (USD million) Issue Date Maturity Date
9.65
10.25
1-Mar-08
31-Oct-15
BW 002
BW 003
26-Mar-03
26-Nov-03
Government Bonds# Yield (%)
850
900
Sector
5 Most Active Sectors in 2005
Banking
Financial Services and Insurance
Mining and Materials
1
2
3
Sector
Retailing, Wholesaling and Consumer Staples
Property and Property Trusts
4
5
2003 2004 2005
288.69260.37
28.32
23.23-
23.23
Total Value Traded (USD million)Value traded on government bonds
Value traded on corporate bonds
0.56-
0.56
Bonds StatisticsBonds
Description of the Product Year
1989
1997
1999
Stocks
Bonds
Commercial Paper
Equities
Fixed Income
Fixed Income
ProductsProduct
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Description of the Index Methodology of Calculation
Market cap indx
Market cap indx
Market cap indx
Covers all domestic listed companies
Covers all foreign listed companies
Covers both foreign and domestic listed companies
Domestic Company Index (DCI)
Foreign Company Index (FCI)
All Companies Index (ACI)
IndicesIndex Name
Indices Trading Statistics
Index
Domestic Company Index (DCI)
Foreign Company Index (FCI)
All Companies Index (ACI)
Market Cap. (USD billion)
2.65
59.56
62.22
2.32
34.58
36.90
2004 2005
Volume Traded (million)
39.56
4.60
44.16
56.78
2.96
59.74
2004 2005
Value Traded (USD million)
44.79
2.40
47.19
42.78
2.16
44.94
2004 2005
Indices Performance
Index
Domestic Company Index (DCI)
Foreign Company Index (FCI)All Companies Index (ACI)
% Change
23.21
78.0274.66
Index Closing (end of year)
3559.14
1129.941211.49
2888.68
634.71693.63
2004 2005
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Cairo & Alexandria Stock Exchanges
Chairmans LetterIn a year of mixed fortunes for markets, CASE has continued to reinforce and improve its position in terms ofbenchmark performance. Our core trading business has performed exceptionally well during a period ofincreasing competition among markets.
Undoubtedly, 2005 was the most remarkable year for CASE over the past decade. CASE ranked top, compared
to developed and emerging markets, tracked by Standard & Poors and Morgan Stanley indices. The wellacclaimed magazine Newsweek pointed out that CASE was one of the top and best performing markets inthe world. All CASE main market indicators reached their all time high: market capitalization soared to $80billion almost 110 percent higher than 2004, value traded increased sharply to $28 billion around 310 percentmore than 2004, market capitalization as a percent of GDP exceeded 75 percent etc. The domestic markethas seen significant growth in equities trading, which was mainly fuelled by the active participation of internationaland retail customers.
Our vision is to be the Exchange of Choice in the Middle East and North Africa (MENA) Region and as suchwe will spare no efforts to better serve our customers.
This year, we have worked on building and renewing our critical regulatory and infra structural platforms. Ourcommitment to develop a quality marketplace is indisputable. In line with our annual efforts, we released a setof new rules i.e. margin trading, intraday trading and some amendments in the listing rules. These measures wereaimed at raising the responsibilities of intermediaries and facilitating mergers and acquisitions among issuers.
These changes are important in continually improving the robustness of our marketplace. Furthermore, we havecemented our leadership in technology and driven ahead with an agreement with one of the key technologyexchange companies worldwide, OMX Group, to establish a joint venture company in Cairo that will betterserve the Egyptian, Middle Eastern and African capital markets.
In the coming year, we plan to introduce new products such as Exchange Traded Funds. We will also be exploringnew structured products and distribution channels for greater retail penetration. Furthermore, CASE will focus
its coming efforts on encouraging new domestic and regional listings. By constructing a market of quality listedcompanies, we are in a position to greatly advance the reforms of the Egyptian economy. Moreover, CASE
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will continue its educational programs in collaboration with various universities in Egypt in order to enhanceinvestor education.
Year 2005 witnessed the passing of several important economic laws by the Egyptian government, whichconfirmed the governments commitment to reform and impacted positively on the activity and turnover of CASE.
In its drive to be the major player in the MENA region, CASE also strives to be recognized globally. Consequently,CASE was the first Arab Exchange to be a member of the World Federation of Exchanges in 2005, whichconfirms the compliance of CASE to international standards.
Maged Shawky
Chairman - CASE
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BackgroundThe history of Cairo and Alexandria stock exchanges can be traced to the19th century, when the merchantsof Alexandria used to meet in coffee houses to cut their deals, then found the urge to establish the AlexandriaBourse in 1883, to be one of the oldest among the Middle East stock markets, followed by the Cairo StockExchange in 1903 with 97 listed companies at an aggregate capital of LE 29 million, which jumped to 228listed companies in 1907 with a combined capital of LE 91 million.
Both Cairo and Alexandria Stock exchanges merged and managed to outperform throughout the 1940s andthe early 1950s, to the extent that they ranked fifth among the world exchanges. Twenty-one brokerage firmswere on hand to take care of this swelling trading.
Following the socialist regime and the nationalization policy adopted by the government in the early 1960s,the role of Egypts private sector has diminished and likewise the activities of the Cairo and Alexandria StockExchanges (CASE). Only 9 companies were listed on the market during 3 decades, nevertheless the Exchangewas never shut down.
In consistency with Egypts new era of economic reform and restructuring undertaken in 1991, the role of Cairoand Alexandria Stock Exchanges was re-activated in 1992, with the issuance of the Capital Market Law no.95of 1992, issued by the Capital Market Authority (CMA), which laid the regulatory framework for the financialintermediaries; brokers, fund management firms, venture-capital firms, underwriters, investment banks..etc. Duringthis year, 656 companies were listed and available on the trading floor.
One automated trading system was to link both Exchanges in 1994, which facilitated the implementation of theprivatization program that had started in the same year leading to another push in the revival of the EgyptianStock Market. A number of Initial Public Offerings (IPOs) of the state-owned companies were executed throughCairo and Alexandria Stock Exchanges.
Starting 1997, as the importance of the Stock Exchange was established - as a gateway for companies to raisecapital and for investors to share in companies profits the number of issued and listed shares kept on increasing,
which attracted both retail and institutional investors to the market, leading to higher trading volumes.
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It is worth mentioning that starting1997 and pursuant to Presidential Decree no. 51 for 1997, both stock exchangeswere managed by the same Chairman and Board of Directors. The Chairman is appointed by the Prime Minister,whereas the Board of Directors are elected from the market participants, representatives of the Capital MarketAuthority, the Central Bank of Egypt (CBE) and the banking sector.
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Trading Statistics
2003 2004 2005
27,93726,248
1,689
5,3114,199
1,112
4,210,092
744
441
186
79
77
31.1
Total Value Traded (USD million)Value Traded on Listed Securities
Value Traded on Unlisted Securities
Total Volume Traded (million)Volume of Listed Securities Traded
Volume of Unlisted Securities Traded
Total Number of Transactions
Number of Listed Companies
Number of Traded Companies
Average Monthly Traded Companies
Market Capitalization End of Year (USD billion)
Market Capitalization as % of GDP
Turnover Ratio (%)
4,5143,740
775
1,4231,202
221
1,229,377
978
540
206
28
36
11.5
Trading StatisticsIndicators
6,8085,807
1,001
2,4341,786
648
1,743,654
795
503
200
38
44
14.2
% of the Total Value Traded
Investors Type
Investor
27%
73%
47%
53%
Foreign Investors
Local Investors
Institutions
Individuals
20%
80%
54%
46%
2003 2004 2005
30%
70%
47%
53%
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Number of Companies Included in Each Sector
Sectors Traded
Sectors Traded on the Stock Exchange
24
106
3412
55
55
69
63
42
5
66
65
12
13
20
33
10
34
4
48
28
27
120
3412
57
60
73
68
39
5
74
66
13
12
21
32
11
38
4
54
29
Agriculture and Fishing
Building Materials and Construction
ChemicalsConsumer & Household Goods
Electrical Equipment and Engineering
Entertainment
Financial Services
Food and Beverages
Health and Pharamceuticals
Holding Companies
Housing and Real Estate
Information TechnologyMedia
Mills and Storage
Mining & Gas
Miscellaneous Services
Paper & Packaging & Plastics
Retailers
Textile and Clothing
Telecommunication
Trade
Utilities
28
148
3216
75
73
102
78
45
5
103
80
14
14
24
44
13
48
0
73
35
2003 2004 2005
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Sector
5 Most Active Sectors in 2005
Textile and Clothing
Building Materials and Construction
Telecommunication
1
2
3
Methodology of Calculation
Indices
Index Name
It is a free floated market capitalization index that was released on
the 2nd of February 2003 and was retroactively computed as of
1 January 1998 with a base value of 1000 points. The most importantcriterion for inclusion in the index is liquidity.
CASE 30 Index
Description of the Index
free floated
market cap
index
2003 2004 2005
1,5401,512
28
456448
8
Total Value Traded (USD million)Value traded on government bonds
Value traded on corporate bonds
531494
37
Bonds StatisticsBonds
Products
Product
All common stocks as well as 2 companies with preferred stocks
Government and corporate bonds with the bulk owed to Treasury bonds issued through the Primary Dealers System.
Three closed ended funds
Stocks
Bonds
Mutual Fund
Description of the Product
Sector
Financial Services
Holding Companies
4
5
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Indices Trading Statistics
Index
CASE 30 Index Constitiuents
Market Cap. (USD billion)
4317
2004 2005
Volume Traded (million)
2,5591,313
2004 2005
Value Traded (USD million)
15,5114,161
2004 2005
Date of Offering
GDRsGDR
London Stock Exchange
London Stock Exchange
London Stock Exchange
London Stock ExchangeLondon Stock Exchange
London Stock Exchange
New York Stock Exchange
LondonStock Exchange
Luxemburg Stock Exchange
London Stock Exchange
London Stock Exchange
London Stock Exchange
Stock Exchange
Egyptian Financial Group Hermes Holding
Orascom Construction Industries
Orascom Telecom
Ezz SteelMisr International Bank
Commercial International Bank (CIB)
Commercial International Bank (CIB)
Paint & Chemical Industries (Pachin)
LAKAH Group
Suez Cement
Egypt Lebanon Ceramics (Lecico)
Telecom Egypt
Aug-98
Aug-02
Jul-00
Jun-99Apr-98
Jul-96
Jul-96
Oct-97
Jul-99
Jul-96
Nov-04
Dec-05
Indices Performance
Index
CASE 30
% Change
146.29
Index Closing (end of year)
6324.72567.99
2004 2005
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Latest AchievementsIn view of the Exchange's vision to become the main gateway for investment in the MENA region, CASEundertook an ambitious plan to develop its technology, regulations, information dissemination, public awarenessand products development.
a) Technological Development
Having recognized technology, as one of the key foundations in the capital market, CASE spared no efforts inupgrading its technology platform and infrastructure to accommodate new features and products.
In 2005, CASE has upgraded the capacity of the trading system to meet the surge in turnover and activityand the corresponding increase in number of transactions and volume trading. Accordingly, the capacity ofthe system was enlarged to accommodate more than 100,000 transactions per day.
Year 2005 has also witnessed the linking of the trading system of CASE with the clearing system of the MCDR,to provide a Straight through Processing environment. The new system ensures investor protection as it guaranteesthe availability of the securities before effecting selling transactions (the correct or the wrongly executed ones),which in turn ensures timely and proper settlement, on one hand and a reduction in the number of cancelledtransactions, on the other.
In order to accomodate the extensive implementation of the privatization program undertaken by the Egyptian
government, CASE has recently designed and developed a special program for the OPR market that accommodatesand compiles IPO and private placements orders before execution in the market. This program facilitates ordersregistrations and cancellations, ensures accurate calculations of the allocation percentages and smoothes thedealing with the large number of transactions related to the offerings.
From another perspective, CASE is currently working on building a Disaster Recovery Site in Alexandria StockExchange to act as the back-up system in case of any unexpected failure in the main trading system locatedin Cairo Stock Exchange premises.
Moreover, a new coding program is currently under prepartion to enable brokerage firms to register their newclients from their offices.
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Finally, the Exchange is planning to upgrade its backbone network in order to enhance its trading infrastructure,with support from its new partner; OMX Group.
b) Regulatory Development
Year 2005 witnessed the issuance and amendments of some rules and regulations covering a number of toolsand mechanisms introduced by CASE to the market. These include amendments to the Listing rules to accommodatenew offerings, mergers and acquisitions undertaken under the privatization program, formulation of the Intra-day Trading rules (which became operative in October 2005) and finalizing the executive regulation of themargin trading rules. CASE has also finalized online trading (e-trading) rules, pending the Capital MarketAuthority (Regulator) approval for implementation.
c) Information Dissemination
In order to increase the level of transparency and improve the quality of information in the market, CASE hasre-launched its website in September 2005, providing the most recent market statistics with only 15 minutesdelay, together with a wealth of information about CASE rules and regulations, member firms, up-to-date news,education corner as well as information services.
Moreover, through its subsidiary (EGID), CASE ensures a proper dissemination of information to market participants
and data vendors.
Its worth mentioning that in October 2005, the Minister of Investment and Chairman of the Board of Trusteesof Egypt Institute of Directors approved the release of Egypt's Code of Corporate Governance, conformingto OECD principles, which would be adopted by companies listed on CASE, financial institutions and largenon-traded family members and would further enhance the level of transparency in the Egyptian market.
d) Public Awareness
Within the framework of its investor education and public awareness campaign, CASE held Borsa Step X StepForum and Exhibition, which targeted this year students in the different universities in Egypt.
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The Forum offered interactive sessions in order to educate students about the basics and fundamentals ofinvestment and trading in the stock market.
It is worth mentioning that throughout 2005, Borsa Step x Step was held in Ain Shams University in April 2005,Cairo University in July 2005, the Canadian University and the German University (GUC) in November 2005.
Moreover, Borsa Step X Step has moved to Egypt's Governorates, starting with Mansoura University, wherethe forum was held over the period (20 - 24 November 2005).
The Forum will be continued at the American University (AUC), Mansoura University, Ain Shams University andCairo University in 2006. It is expected that the forum will be also held in other governorates.
CASE has also conducted road shows in the Gulf region to promote the Egyptian market and encouragereputable blue chip companies to come and list on CASE.
A workshop defining the concept of Islamic Finance, how Islamic methods are integrating into global capitalmarkets, was conducted jointly between CASE, HSBC Egypt and HSBC Amanah in July 2005. This workshopwas attended by bankers, investment bankers, asset & portfolio managers in Egypt, as well as senior stockexchange management.
Finally, CASE has concluded a joint project with Egypts Post Office to launch a new mutual fund that invests
in the stock market in order to attract the savings of small investors into the market. In this respect, CASE hasconducted educational courses about the basics of investment and financial instruments available in the capitalmarket, for the Post Office officials amd employees.
e) International Alliances
CASE became a member of WFE (World Federation of Exchanges) in November 2005, making it the first Arabcountry to enjoy this status at the WFE, which in turn reflects the compliance of the Egyptian Stock Exchange
to international standards recognized by financial institutions and regulatory bodies in different markets.
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The WFE currently consists of 57 member exchanges from different regions, representing almost 97percent ofthe world market capitalization.
On the regional front, CASE was elected to preside over the African Stock Exchanges Association (ASEA),which consists of 18 African Stock Exchanges members. The elections took place at the end of ASEA 9th
conference, which was held in Cairo mid September 2005.
Moreover, CASE is an active member of the Federation of Euro-Asian Stock Exchanges (FEAS) and the Unionof Arab Stock Exchanges.
On 18 January 2006, CASE and Borsa Italiana signed a Memorandum of Understanding to enhance theactivities of intermediaries and investors in both the Egyptian and Italian markets. The two Exchanges will consultand cooperate on issues of mutual interest such as market regulation, investor education, market efficiency and
training programs. The two Exchanges also agreed to share information on the principles of corporate governancefor listed companies and on listing criteria, market surveillance, electronic platforms and statistics.
The Exchange has also signed Memoranda of Understanding (MOUs) with various stock exchanges includingKorea, Hong Kong, London, Madrid, Nigeria, Johannesburg, Kuala Lumpur, Malta, China, Thesssaloniki andNational Stock Exchange of India, in addition to joint cooperation agreements with most of the Arab StockExchanges including Kuwait, Lebanon, Jordan, Bahrain, Oman and Sudan.
f) Product Development
ABN-AMRO Bank got a license from CASE to issue open end certificates on CASE 30 Index to be tradedon 4 international stock markets. On 27 October 2005, 500 thousand certificates were listed and traded onthe Swiss Exchange.
CASE has also signed on 3 January 2006, a joint branding and marketing agreement with Dow Jones Indexes,
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a leading global index provider, to create the Dow Jones CASE Egypt Titans Index, a blue-chip index that coversthe largest and most liquid companies in Egypt. The index is scheduled to be launched by the end of the firstquarter 2006.
CASE is looking ahead to undertake the following:
Re-locate the Exchange to the Smart Village, being a main component of the regional financial center. Commitment to best practices (conduct standards and integrity). Increasing diversity of offerings. Continuous review of Listing and governance rules to ensure quality issuers on its main board. Introduce a new segment for SMEs and growing companies. Encouraging dual listings of blue chip companies.
Introduce new trading mechanisms such as margin trading, short selling and online trading to further enhancemarket liquidity.
Introduce Exchange Traded Funds and derivatives.
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BackgroundOn 7 November 1929, the Casablanca Stock Exchange held its first trading session. In the course of its 77-
year history, the institution has undergone three major reforms. Under the first, in 1948, the Securities exchange
acquired legal personality. The second, in 1967, involved a legal and technical reorganization, and a change
in legal status to that of a public establishment. The third was initiated in 1993, and amended and supplemented
in 1996. This reform defined the various market players, and introduced a range of rules and technical procedures
needed for the development of the Moroccan financial market.
In March 1997, the Stock Exchange has launched the electronic-based trading system followed by the central
securities depository Maroclear in 1998. In end of the same year the Central Market and Block-Trade Market
replaced the Official Market and Direct Transfer Market. Another milestone was in May 2001 when the
settlement period for market transactions was reduced from T+5 to T+3. The new indices of the Casablanca
Stock Exchange: MASI, MADEX, as well as sector indices, return indices and currency indices were all launched
in the beginning of year 2002, while during 2004, the Exchange has adopted the float-weighted market
capitalization method for calculating indices.
g
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Trading Statistics
2003 2004 2005
Trading StatisticsIndicators
6.136.13
-
37.437.4
-
38,102
52
52
50
13.18
27.14
5.66
8.748.74
-
179.8179.8
-
73,133
53
53
52
25.15
46.75
7.36
16.0616.06
-
439.5439.5
-
160,98254
54
53
27.28
55.23
14.87
Total Value Traded (USD billion)Value Traded on Listed Securities
Value Traded on Unlisted Securities
Total Volume Traded (million)Volume of Listed Securities Traded
Volume of Unlisted Securities Traded
Total Number of Transactions (million)
Number of Listed Companies
Number of Traded Companies
Average Monthly Traded Companies
Market Capitalization End of Year (USD billion)
Market Capitalization as % of GDP
Turnover Ratio (%)
Number of Companies Included in Each Sector
Sectors Traded
Sectors Traded on the Stock Exchange
6
36
5
3
2
4
2
1
1
11
3
5
36
5
3
2
4
2
1
1
-1
3
Food Producers & Processors
InsuranceBanks
Construction & Building Materials
Beverages
Chemicals
Distributors
Wrapping
Electrical & Electronic Equipment
Real Estate
Pharmaceutical IndustrySoftware & Computer Services
Mining
5
36
5
3
2
4
2
1
1
-1
3
2003 2004 2005
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2003 2004 2005
477.82-
477.82
862.25-
862.25
Total Value Traded (USD million)Value traded on government bonds
Value traded on corporate bonds
939.30-
959.30
Bonds StatisticsBonds
Number of Companies Included in Each Sector
Sectors Traded
Sectors Traded on the Stock Exchange
2
1
73
1
1
1
2
-
93
1
1
1
Oil & Gas
Utilities
Investment Companies & Other FinanceHolding Companies
Forestry & Paper
Telecommunications
Transport
2
-
93
1
-
1
2003 2004 2005
Sector5 Most Active Sectors in 2005
Telecommunications
Banks
Food Producers and Processors
1
2
3
Sector
Holding Companies
Mining
4
5
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Indices Trading Statistics
Index
MASI
MADEX
Market Cap. (USD billion)
5.53
4.22
5.33
4.01
2004 2005Volume Traded (million)
439.22
419.14
168.29
162.88
2004 2005Value Traded (USD billion)
15.59
12.42
5.85
4.79
2004 2005
Methodology of Calculation
Indices
Index Name Description of the Index
Morroccan All Shares Index
Most Active Shares Index
Morroccan All Shares Index
Most Active Shares Index
MASI
MADEX
MASIR
MADXR
Free Float Index / Market cap index
Free Float Index / Market cap index
Return Index
Return Index
Indices Performance
Index
MASIMADEX
MASIR
MADXR
% Change
22.4923.75
27.71
28.45
Index Closing (end of year)
5539.134358.87
8453.02
6373.44
4521.983522.38
6619.16
4961.66
2004 2005
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Latest Achievements Application of new listing requirements.
Extension of trading hours. The trading session begins at 09:00 am (pre-open) and closes at 03:30 pm instead
of 01:30 pm previously.
Increase in the price change limit for the reference price to 10 percent during each of the first five stock-market trading sessions following listing of a company on the Casablanca Stock Exchange instead of 6 percent
previously.
De-listing of DIAC-EQUIPMENT by the Casablanca Stock Exchange for non-respect of listing requirements.
Approval by the Ministry of Finance and Privatization of guidelines concerning the supervision of brokerage
firms.
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Chairmans LetterDar es Salaam Stock Exchange (DSE) is one of the youngest stock exchanges in Africa. The DSE was established
in 1996 through the Government of Tanzania initiatives, to facilitate among other things, the privatization exercise
being implemented by the Government. Today DSE is eight years old. The listings have increased from two
in 1998 when the DSE started operations to eight, which includes two cross-listings from Nairobi Stock Exchange
(NSE). A lot of efforts have been made to achieve what we see at the DSE today. These efforts include public
awareness programmes, market development initiatives such as identifying potential companies and theirsensitization to list at the DSE and cross border listings and linkage of the markets in the East African region
as well as in the SADC area. The above efforts have facilitated the harmonization of rules and regulations as
well as cross listings. So far, there are two companies which are cross listed in the East African Markets. The
two companies are listed at the Nairobi Stock Exchange (NSE) as their primary listing market and in Uganda
Securities Exchange (USE) as well as at the DSE. The two companies are Kenya Airways and East African
Breweries Ltd. Several other companies are in the process of obtaining cross listings in all the three markets.
The cross-listings in an indication of the commitment by East African Securities Exchanges, to integrate their
markets.
As ASEA seeks to consolidate the information on all ASEA members, the inclusion of the DSE data on the ASEA
fact book will provide the needed information on the African Stock Exchanges so that investors may have a
single source of information pertaining to all African markets in a single source.
We, at the DSE, are committed to providing an update on our activities as and when required so that the fact
book is continuously updated. It is our hope that the enclosed facts on the DSE will provide the starting pointof the preparation of ASEA fact book and the step towards the provision of necessary information on the African
Stock Exchanges to the wide investor base across the globe.
We wish ASEA all the best in this endeavor.
G.E. Maganga
Chairman DSE
Dar Es Salam Stock Exchange
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BackgroundThe Dar Es Salaam Stock Exchange (DSE) was incorporated in September 1996 as a private company limited
by guarantee and not having a share capital under the Companies Ordinance (Cap. 212). The DSE is therefore
a non-profit making body created to facilitate the Government implementation of the economic reforms and
in future to encourage the wider share ownership of privatized and all the companies in Tanzania and facilitate
raising of medium and log-term capital.
The formation of the DSE followed the enactment of the Capital Markets and Securities Act, 1994 and the
establishment of the Capital Markets and Securities Authority (CMSA), the industry regulatory body charged
with the mandate of promoting conditions for the development of capital markets in Tanzania and regulating
the industry. The governing organ of the DSE is the Council of the Exchange, which consists of 10 members
representing various interest groups in the society.
Trading activities at the DSE commenced on 15 April 1998 after two years of background preparatory work
under the stewardship of the Government through the Capital Markets and Securities Authority. The openingof the Trading Floor coincided with the listing of TOL Limited as the first company on the new Exchange.
The Exchange is open for 5 days in a week. The trading days are currently four days in the week, Tuesdays,
Wednesdays, Thursdays and Fridays. Trading takes place between 10-11 am. The securities currently being
traded are ordinary shares of eight companies, six corporate bonds and ten Government of Tanzania bonds.
The DSE membership consists of Licenced Dealing Members (LDMs) and Associate Members. LDMs are allowed
access to the trading floor. Associate members are institutions and companies which support the DSE.
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Trading Statistics
Number of Companies Included in Each Sector
Sectors Traded
Sectors Traded on the Stock Exchange
71
2
61
2
ManufacturingAgriculture
Transport
51
0
2003 2004 2005
2003 2004 2005
13.3613.36
NA
29.6929.69NA
2,285
8
8
8
2,283.03
0.109
0.58
27.8827.88
NA
22.9222.92NA
3,426
7
7
7
774.10
0.037
3.60
Total Value Traded (USD million)Value Traded on Listed Securities
Value Traded on Unlisted Securities
Total Volume Traded (million)Volume of Listed Securities TradedVolume of Unlisted Securities Traded
Total Number of Transactions
Number of Listed Companies
Number of Traded Companies
Average Monthly Traded Companies
Market Capitalization End of Year (USD million)
Market Capitalization as % of GDP
Turnover Ratio (%)
30.9530.95
NA
42.9442.94NA
5,429
5
5
5
668.57
0.034
4.63
Trading StatisticsIndicators
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Sector
3 Most Active Sectors in 2005
Manufacturing
Agriculture
1
2
Issue Value Issue Date Maturity Period
17.84
16.48
18.13
17.99
2 yrs
5 yrs
7 yrs
10 yrs
1
2
3
4
2002
2003
2003
2003
Government Bonds# Yield (%)
Sector
Transport3
Description of the Product Year
1998
1999
Equities
Bonds
Corporate
Treasury and Corporate
ProductsProduct
NA
NA
NA
NA
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Chairmans LetterIn the over one hundred years since its establishment, the JSE remains the economic crucible of South Africa
and a vital contributor to wealth creation on the African continent. Despite this, we understand the importance
of constantly evolving to remain relevant to stakeholders.
We recognise that our relevance is entirely dependent on the JSEs ability to uphold state-of-the-art standards
and to run a low cost, highly efficient market offering a wide, superior range of financial products and servicesthat attract both local and international capital flows to invest in South African markets.
Our exposure to both local and international market practices has allowed us to constantly innovate for the
benefit of our issuers and investors, whilst still exercising prudence in the way we manage our business. It is
these lessons and experiences that we would hope to share with our African neighbours as they develop their
financial markets.
Today, the JSE Limited remains heavily focused on its core business of offering the issuer and investor a trulyfirst world trading environment, with world class technology, surveillance and settlement in an emerging market
context. However we realize the ever-increasing role that we will need to play in educating existing and new
investors about the opportunities that abound on the exchange. It is these exciting opportunities that continue
to propel us forward.
Humphrey Borkum
Chairman - JSE Ltd
JSE Limited
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BackgroundIn a humble miners tent on the 8 November 1887, a mere year after the feverish cries of gold rang through
the Witwatersrand, the JSE was born. It created an economic crucible in the heart of an infant Johannesburg
and, in the hundred years since then, this has not changed, despite constantly evolving to remain relevant to
stakeholders.
It wasnt long after opening the trading floor in 1887, that dealing overflowed from the market hall where theJSE was housed, into Simmonds Street, leading to a decree by the Mining Commissioner that the area between
Market Street and Commissioner Street be chained off to keep out horse-driven traffic. This became the historic
"between the chains" area. Subsequently the exchange moved to Diagonal Street where trading took place
manually using a system of open outcry.
Now housed in a new state-of-the-art building in Sandton, the JSE has emerged as a technological and innovative
exchange, on par with its international counterparts, concerned with satisfying stakeholder needs as efficiently
and cost effectively as possible. Today, the JSE Limited offers the investor a truly first world trading environment,with world class technology, surveillance and settlement in an emerging market context. It is the 17th largest
equities exchange in the world, with a total market capitalization of some R3.2 trillion. With approximately 400
listed companies and a market liquidity of 36 percent, the JSE is marginally smaller than Stockholm and larger
than 9 markets classified as Developed.
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Trading Statistics
2003 2004 2005
203.3203.3
-
54.554.5-
5,064,042
388
388
388
570.1
235.4
36
187.8187.8
-
45.445.4-
3,911,451
403
403
403
467.5
185.1
40
Total Value Traded (USD billion)Value Traded on Listed Securities
Value Traded on Unlisted Securities
Total Volume Traded (billion)Volume of Listed Securities TradedVolume of Unlisted Securities Traded
Total Number of Transactions
Number of Listed Companies
Number of Traded Companies
Average Monthly Traded Companies
Market Capitalization End of Year (USD billion)
Market Capitalization as % of GDP
Turnover Ratio (%)
114.8114.8
-
43.143.1-
3,253,858
426
426
426
272.9
142.2
42
Trading StatisticsIndicators
Number of Companies Included in Each Sector
Sectors Traded
Sectors Traded on the Stock Exchange2003 2004 2005
51
2523
15
22
67
7
101
23
11
1715
11
54
2625
16
25
75
11
98
25
12
198
9
Resources
Basic IndustriesGeneral Industrials
Cyclical Consumer Goods
Non Cyclical Consumer Goods
Cyclical Services
Non Cyclical Services
Financials
Information Technology
Development Capital
Venture CapitalAlt-X
Specialist Securities
61
2726
18
27
81
14
99
27
14
205
7
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Sector
5 Most Active Sectors in 2005
Financials
Cyclical Services
Resources
1
2
3
Sector
Basic Industries
Non Cyclical Consumer Goods
4
5
Description of the Product Year
1887
1992
1997
1992
1999
2000
2003
ProductsProduct
Equities
Index Futures
Bond Futures
Single Stock Futures
Kruger Rands
Bond Index Futures
Warrants
Exchange Traded Funds
Interest Rate Product
An instrument that signifies an ownership position, or equity, in a corporation, and represents
a claim on its proportionate share in the corporation's assets and profits.
A standardized, transferable, exchange-traded contract that requires delivery of a commodity,bond, currency, or stock index, at a specified price, on a specified future date.
A single transaction equivalent to the simultaneous sale of a put and purchase of a call
for a given stock. Single stock futures essentially allow investors to sell a stock short without
waiting for a downtick as would otherwise be required.
A standardized, transferable, exchange-traded contract that requires delivery of a bond
index, at a specified price, on a specified future date.
The right to purchase or sell shares (the underlying security) at a specified date in the future
at a specified price.
An Exchange Traded Funds (ETF) is a fund that tracks an index, but can be traded like a
stock.
The interest rate product offers a single platform for the trading of interest rate products
on a yield basis. It is a single point access and one stop yield shop.
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Indices
Index Name
The FTSE/JSE All Share Index represents 99% of the full market capital
value, i.e. before the application of any investibility weightings, of all ordinary
securities listed on the main board of the JSE which qualify as eligible for
inclusion in the index.
The FTSE/JSE Top 40 Index will consist of the largest 40 companies ranked
by full market value, i.e. before the application of any investibility weightings,
in the All Share Index. The number of consitutents in this index is mantained
at a constant level.
The FTSE/JSE Mid Capitalisation Index consists of the next 60 companies
ranked by full market value, i.e. before the application of any investibility
weightings, in the All Share Index.
The FTSE/JSE Small Capitalisation Index consists of shares that are in the
FTSE/JSE All Share Index, but are not large enough to qualify for the
FTSE/JSE Top 40 Index or the FTSE/JSE Mid Capitalisation Index.
The FTSE/JSE Fledgling Index will consist of all ordinary securities listed on
the JSE which qualify under Rules 4.1 to 4.4 as eligible for inclusion in an
index but are too small to be included in the FTSE/JSE All Share Index.
FTSE/JSE All Share
FTSE/JSE Top 40
FTSE/JSE Mid Cap
FTSE/JSE Small Cap
FTSE/JSE Fledgling
Description of the Index
Two values are provided, i.e.
the price and the total return
index.
Two values are provided, i.e.
the price and the total return
index.
Two values are provided, i.e.
the price and the total return
index.
Two values are provided, i.e.
the price and the total return
index.
Two values are provided, i.e.
the price and the total return
index.
Methodology of Calculation
Indices Performance
Index
FTSE/JSE All Share
FTSE/JSE Top 40
% Change
42.98
44.12
Index Closing (end of year)
18096.54
16438.05
12656.86
11405.72
2004 2005
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Indices Trading Statistics
Index
FTSE/JSE All Share
FTSE/JSE Top 40
FTSE/JSE Mid CapFTSE/JSE Small Cap
FTSE/JSE Fledgling
Market Cap.(USD billion)
402.95
348.31
44.949.70
2.61
323.78
276.97
39.357.45
2.13
2004 2005
Volume Traded (billion)
31.99
19.50
8.543.95
3.77
32.67
20.53
8.503.65
2.92
2004 2005
Value Traded (USD billion)
188.64
163.47
21.553.63
0.77
179.96
158.01
19.162.79
0.51
2004 2005
Year
GDRs
GDR
PORTAL
PORTAL
PORTAL
PORTAL
African Rainbow Minerals
Dimension Data Holdings
Randgold & Eploration Co
Woolworths Holdings
Stock Exchange Country
Worldwide
Worldwide
Worldwide
Worldwide
1995
1997
1997
1998
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Latest AchievementsThe JSEs relevance is entirely dependent on its ability to uphold state-of-the-art standards and to run a low
cost, highly efficient market offering a wide, superior range of financial products and services that attract both
local and international capital flows to invest in South African markets. One of the largest of the exchanges
initiatives to reduce costs and improve services to its stakeholders, is Project Orion.
Project Orion is an ambitious IT project aimed at transforming the JSEs legacy systems to the latest technologyis currently underway and will make the exchange even more attractive to investors.
Broadening the investor base and bringing economic prosperity and, as a result, social growth and development
to Africa are two of the JSEs main goals. It is an African Exchange dedicated to assisting existing exchanges
on the rest of the continent and working towards a Pan-African Board.
Project Thusanang, meaning: Let us help each other, is a JSE initiative aimed at growing the economies of
Southern Africa and the African continent. It will provide a hub of opportunity for investors who will be ableto access quality investments across Africa using the JSEs trading technology. As a national institution that assists
in enriching the South African and African economies, the JSE recognises that in order to be a catalyst for
change and prosperity, it needs to drive the process. The JSE is an exchange concerned with remaining relevant
to all its stakeholders - providing opportunities for the fulfilment of financial hopes, from small investors to listed
companies as well as research material for the investor community through the provision of data services.
Recognising that innovation is key to meeting the needs of its investors and other stakeholders, this recentlydemutualised public company, has developed several innovative services and products, including the Socially
Responsible Investment Index, AltX, YieldX, Itrix and Satrix.
The JSE Socially Responsible Investment (SRI) Index was established in 2003 to further the principles of good
business practice as outlined in the King II Report on Corporate Governance as well as the importance of triple
bottom-line sustainability espoused at the World Summit on Sustainable Development held in Johannesburg
in 2002. The SRI Index - the first such index in an emerging market - encourages and acknowledges companies
that care about people, planet and prosperity. It is hoped that the Index will lead to a premium rating forcompanies that are included in it as investors assess the behaviour of the companies in which they invest.
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AltX, the Alternative Exchange which recently celebrated its 2nd birthday, has a market cap of R1, 8 billion
and is a joint initiative of the Department of Trade and Industry and the JSE. The creation of this exchange is
an echo of the JSEs concern for the success and sustainability of organisations at all levels in South Africa and
comes from the realisation that in a developing economy, small companies need a place to go. AltX, which
has successfully listed a total of 16 companies to date, has proved intensely attractive to investors interested in
the growth potential of smaller companies, as it lacks the wild volatility of share movements that typically markthe small to mid-cap sector. The small-to-medium-sized-companies market allows a business culture of flexibility
to thrive. It is an investment friendly, well-connected supplier of choice that is excellently positioned in Africa
and very quickly becoming a recognised and respected local and international brand.
Yield-X launched in 2005 is dedicated to trading a wide range of interest rate products. Yield-X makes it simpler,
cheaper and more transparent for investors to trade in interest rate products and so makes this market highly
attractive to prospective and existing investors. Yield-X represents the second development of the JSEs plans
to expand their existing derivatives markets and offer more instruments to fulfil investor needs and demands.It follows the successful development of the Single Stock Futures market, a market that is now the fourth largest
in the world, trading 135 futures and comprising 73 percent of the derivatives traded on the exchange.
Itrix, also launched in 2005, is an entirely new series of Exchange Traded Funds (ETFs) that paves the way for
South African investors to invest in a portfolio of offshore listed companies through the local market. Itrix tracks
the performance of major international benchmark indices. Two Itrix ETFs were listed first - tracking the FTSE100 and Dow Jones Euro Stoxx 50 - with another two - tracking the performance of major US and Eastern
indices - planned for listing in 2006. Itrix is a joint initiative between the JSE and Deutsche Bank who regard
the new ETF as one of the most exciting opportunities for South Africans to gain offshore investment exposure
to come about in many years.
Satrix is a series of three index tracker funds that are listed and traded on the JSE Limited. It is also part of
an effort by the JSE to broaden their investor base in order to better encompass a consumer market. The
advantage of Satrix is that it allows investors to own the performance of the JSEs top companies with a singletransaction and receive an excellent return at a very affordable price.
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The JSE now looks to the future better equipped to meet the needs of its stakeholders and contribute to growingthe economies of South Africa and the African continent. It remains committed to the concept of providing a
single market place for investors into Africa. It sees its role as acting as a hub of opportunity for a broad base
of investors who will be able to access quality investments across Africa using the JSEs trading technology and
acting as a conduit for much needed investment into Africa. The spirit of change and community constantly
blazes its ways through the veins of this institution guaranteeing further development and prosperity for both
our country and our continent.
JSE Limited
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Chairmans LetterAs we look at the first 10 years of our nascent market, we note very exciting developments which the Lusaka
Stock Exchange has been experiencing, that are illustrated into details in the achievements part.
As we look to the next 10 years of the Exchange, we foresee LuSE playing a central role in the economy as
the premier long term capital raising mechanism of choice and core driver of economic activity. The quoted
tier is being restructured to allow medium sized growth companies to access cheaper long term capital and
also provide an exit and market valuation mechanism for venture capitalists.
Our intended link into the JSE will make our market more visible to the prying eyes of emerging market investors.
We are looking at unlocking the potential that lies in our bond market for both corporate and Treasury bonds.
Most of these initiatives are ably tackled under the national Financial Sector Development Plan which is a five
year plan for the development and rationalization of the overall financial sector.
Friday Ndhlovu
Chairman - LuSE
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BackgroundThe Lusaka Stock Exchange (LuSE) was established in 1993 and started formal operations on 21 February, 1994.
The stock exchange was setup with initial financial and technical support from the World Bank/IFC, UNDP and
the Government of the Republic of Zambia as a capital market development project. LuSE was incorporated
as a private not-for-profit limited liability company owned by the Member Brokers.
LuSE was setup to provide access to cheaper long term capital for the private sector as Government moved
away from conducting business to facilitating its