In 2019, daily turnover on all stock exchanges in Africa fell from the previous year, with the exception of the Mauritius Stock Exchange (SEMDEX) where turnover increased by 57% to $15 million. According to the report published Brilliant Africa 2019 by the analysis firm Riscura, SEMDEX recorded the highest increase in daily turnover.
“The improvement in MUSE daily turnover is due in part to an increased size of the real estate sector. According to the IMF, there was significant foreign direct investment in the real estate and offshore sectors,” the report read.
The highest revenue declines were seen in the Zambian and Egyptian markets at 94% and 43% respectively. Riscura explained that the Zambian market "was affected by credit downgrades by Fitch and Moody's during the second half of 2018 and conflicting monetary policy by an interest rate hike in May 2019."
The Egyptian Stock Exchange remained the second most liquid exchange on the continent. But the government's failure to announce full initial public offerings on state-owned companies discouraged investors.
The Johannesburg Stock Exchange remains the fastest growing stock exchange in Africa with an average daily market value of $1.4 billion. Its attractiveness, as well as that of the Egyptian Stock Exchange, which is the second largest with an average daily trading volume of $44 million, is linked to the fact that they are both in the pool of markets targeted by the Index Fund MSCI.
The WAEMU Regional Stock Exchange (BRVM) is the least efficient market. Despite the dynamism of its leaders, this financial market is facing several challenges. It offers few business opportunities. According to Riscura, the free float (shares available for active trading) is only 3% of its overall capitalization. The number of management companies that have higher than average fees in developed markets is low and companies are instead interested in much more profitable bond financing deals.