- Title: IVORY COAST: West African regional bourse returns to post-conflict Abidjan
- Date: 19th May 2011
- Summary: ABIDJAN, IVORY COAST (MAY 17, 2011) (REUTERS) EXTERIOR OF STOCK EXCHANGE, PEOPLE WALKING ON THE STREET SIGN OF BVRM, READING "BOURSE REGIONALE DE VALEURS MOBILIERS," AFRICAN REGIONAL STOCK EXCHANGE ABIDJAN, IVORY COAST (MAY 18, 2011) (REUTERS) VARIOUS OF TRADERS IN FRONT OF COMPUTERS / SCREENS MORE OF TRADERS LOOKING AT SCREEN ABIDJAN, IVORY COAST (MAY 17, 2011) (REUTERS) JEAN-PAUL GILET, DIRECTOR, BVRM, TALKING TO TRADERS TRADER (SOUNDBITE) (French) JEAN-PAUL GILET, DIRECTOR, BVRM, SAYING: "We need to develop, and that is what we will do with the backing of the central bank, a market that will let professional players trade between themselves without necessarily going via the stock market -- but with certain conditions and in a transparent and open way." ABIDJAN, IVORY COAST (MAY 18, 2011) (REUTERS) TRADER TALKING TO A COLLEAGUE TRADER LOOKING AT HIS COMPUTER SCREEN ABIDJAN, IVORY COAST (MAY 17, 2011) (REUTERS) (SOUNDBITE) (French) JEAN-PAUL GILET, DIRECTOR, BVRM, SAYING: "We are working on how we encourage other businesses to come to the market, not just the big ones but also smaller ones -- and for the smaller ones via more flexible mechanisms." VARIOUS OF BANK BHCI BANK, PEOPLE GOING IN VARIOUS OF INTERNATIONAL BANK OF COMMERCE AND INDUSTRY, PEOPLE GOING INSIDE VARIOUS OF PEOPLE WALKING IN BUSINESS DISTRICT
- Embargoed: 3rd June 2011 13:00
- Keywords:
- Location: Cote d'Ivoire
- Country: Ivory Coast
- Topics: Finance,Domestic Politics
- Reuters ID: LVAE72BAQ6YSSL3V9GUM706DU48Z
- Story Text: West Africa's regional BRVM stock exchange is looking to introduce over-the-counter (OTC) trading of bonds by the end of the year as part of efforts to boost liquidity, its managing director said.
Jean-Paul Gilet told Reuters the Abidjan-based exchange had weathered Ivory Coast's five-month political crisis and was now looking at other moves to stimulate business, including cutting red tape for new equity listings.
The BRVM suspended business in mid-February after its office was invaded by soldiers, temporarily relocating activities to the Malian capital Bamako.
Speaking a day after the bourse restarted full operations in Abidjan, Gilet acknowledged the BRVM's 610-billion-CFA (1.32 billion US dollar) bond market experienced weak volumes and said that a Nigerian-style OTC market could help trade.
"We need to develop, and that is what we will do with the backing of the central bank, a market that will let professional players trade between themselves without necessarily going via the stock market -- but with certain conditions and in a transparent and open way," he said.
Gilet said the project had been planned to launch in the first half of this year but had been delayed by a post-election power struggle that cost thousands of lives and sent the economy of the world's top cocoa grower juddering to a halt.
Some 23 issuers, ranging from Senegal's Port of Dakar (PAD), Bank of Africa and telecom groups in Burkina Faso and Togo have listed a total 33 bonds on the BRVM.
Yet May 17 transactions totalled just 540,000 CFA -- a mere 823 euros -- according to the bourse website. Analysts attribute the low liquidity to the cost and difficulty of doing business.
Equity volumes on the bourse also fell during the crisis, which eased last month with the arrest of former president Laurent Gbagbo after he refused to accept defeat in a November 28 election.
"We are working on how we encourage other businesses to come to the market, not just the big ones but also smaller ones -- and for the smaller ones via more flexible mechanisms," Gilet said, giving no timeframe for moves in that area. - Copyright Holder: REUTERS
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