8.Assessing African Equity Capital Markets: The Mauritius Stock ...

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8.Assessing African Equity Capital Markets: The Mauritius Stock ...

  1. 1. Assessing African Equity Capital Markets: The Mauritius Stock Market Presented by Sunil Benimadhu CEO Stock Exchange of Mauritius Corporate Council on Africa (New York, February 26, 2004)
  2. 2. Presentation Outline: <ul><li>Quick overview of the change on the African capital markets landscape </li></ul><ul><li>The Mauritius stock market: characteristics and features </li></ul><ul><li>A statistical overview of the performance of the Mauritius Bourse </li></ul><ul><li>Looking at the Mauritius market from a foreign investors’ perspective. </li></ul><ul><li>The future outlook for the market. </li></ul>
  3. 3. Statistical Data on African Stock Markets (Ex South Africa) 1760 1180 788 No of listed companies 6.5 8.6 0.16 Value traded (US$ Billion) 66 49 5.5 Market Capitalization of African Stock Market (US$ Billion) 19 14 6 No of Stock Exchanges 2002 1997 1988
  4. 4. The Mauritius Stock Market: characteristics and features <ul><li>Stock Exchange set up in 1989 </li></ul><ul><li>Stock Exchange has developed into a reference exchange on the continent </li></ul><ul><li>Operates in line with standards observable in well-established developed stock exchanges </li></ul><ul><li>Achieved strong performance over the years </li></ul><ul><li>Attractive investment destination for foreign investors. </li></ul>
  5. 5. The Mauritius Stock Market: characteristics and features <ul><li>World-class stock exchange infrastructure </li></ul><ul><li>State-of-the art Automated Trading System </li></ul><ul><li>Modern CDS which complies with G-30 and CCSS Standards </li></ul><ul><li>Listing Rules based on JSE Securities Exchange and LSE requirements </li></ul><ul><li>Demutualised stock exchange structure which ensures proper monitoring and regulation of members and market participants. </li></ul><ul><li>Activities of the SEM is closely monitored by the Financial Services Commission. </li></ul><ul><li>A well developed institutional and retail investor base. </li></ul>
  6. 6. The Mauritius Stock Market: Characteristics and Features 23.34 3.97 Liquidity ratio (%) 32.78 4.32 Market Cap/GDP (%) 2,989,174,317.00 14,259,850.00 Annual Turnover (Rs) 51,229,930,441.25 1,437,079,336.00 Market Capitalization (Rs) 120 6 No of traded securities 2003 1989
  7. 7. Statistical Overview of Performance of the Mauritian Bourse (1989-2003) Source: Standard & Poors Global Stock Market Factbook 1.10 Middle East & Africa (1995-2003) 13 EUROPE (1995-2003) 13.33 MAURITIUS - 2.38 ASIA 4.41 S & P 500 Annualized Return %
  8. 8. Statistical Overview of Performance of the Mauritian Bourse: Top Ten Companies (end 2003) <ul><ul><li>14.2 </li></ul></ul>255 08.12.92 P.O.L.I.C.Y Ltd <ul><ul><li>14.3 </li></ul></ul>336 19.12.90 SWAN Insurance Co Ltd <ul><ul><li>16.2 </li></ul></ul>883 05.07.89 Mauritius Development & Investment Trust Ltd <ul><ul><li>16.3 </li></ul></ul>767 27.06.90 Rogers Ltd <ul><ul><li>17.5 </li></ul></ul>939 21.02.90 Mauritius Oil Refineries Ltd <ul><ul><li>17.6 </li></ul></ul>1,050 05.07.89 United Basalt Products Ltd <ul><ul><li>19.3 </li></ul></ul>1,295 05.07.89 Mauritius Commercial Bank <ul><ul><li>19.5 </li></ul></ul>1,200 17.01.90 Mon Désert Alma Ltd (O) <ul><ul><li>20.5 </li></ul></ul>1,484 05.07.89 Mon Trésor Mon Désert Ltd <ul><ul><li>21.2 </li></ul></ul>1,033 13.11.91 Shell (Mtius) Ltd Annualized Total Return ($ terms) (%) Total Return ($ terms)(%) Date of Listing Company
  9. 9. The Mauritius Bourse from a foreign investors’ perspective <ul><li>Bourse which operates in line with international standards </li></ul><ul><li>No exchange control </li></ul><ul><li>No Capital Gains Tax </li></ul><ul><li>No tax on dividends </li></ul><ul><li>Attractive returns </li></ul><ul><li>Listed Companies with good growth potential </li></ul><ul><li>Sound macro-economic situation with good growth perspective. </li></ul>
  10. 10. The Mauritius Bourse from a foreign investors perspective: Macro-economic outlook <ul><li>Mauritius poised to achieve 5% growth in 2004 </li></ul><ul><li>Inflation poised to drop from its current 3.9% </li></ul><ul><li>Interest rate environment conducive to equity investments </li></ul><ul><li>Diversification of economic base well on target. </li></ul><ul><li>A reference of political stability and democracy among developing countries </li></ul>
  11. 11. Future Outlook of Mauritius Bourse <ul><li>Market poised to offer strong returns, ceteris paribus </li></ul><ul><li>In spite of record breaking spree, since early 2003, market still trading at compelling valuation levels </li></ul><ul><li>Private sector confident about growth perspectives. </li></ul><ul><li>Listed bellwether stocks poised to offer double digit returns. </li></ul>
  12. 12. THANK YOU

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