At first glance, the BRVM 10 and Composite indices gave the image of a poor performance of the BRVM in 2020. But in this marketplace, investors have had many other opportunities and positive events.

An average transaction value of 980.24 million CFA francs ($1.8 million) was carried out each day of activities on the Abidjan Regional Stock Exchange (BRVM) in 2020, we learn from the balance sheet and outlook presented on January 20 by Edoh Kossi Amenounve, the director of that institution.

This performance reflects the increase in the value of transactions which reached 246 billion FCFA against 136 billion FCFA in 2010. This is the best stock market trading performance since 2018. It is also one of the positive points of a stock market that has evolved in an international context marked by covid-19.

Another positive aspect of the BRVM in 2020 is the dynamism of its bond sub-fund. The capitalization reached 6051.4 billion FCFA, an increase of 43% compared to that of 2019. In this context, and despite a 7.4% decrease in the capitalization of shares, the overall value of the securities recorded on the BRVM reached 10,961 billion FCFA. This is its highest level for an annual period since 2016.

Similarly, the liquidity ratio, which measures the volume of transactions on the number of marketable securities (floating), rose slightly to 3.6%. Finally, there was a 38.4% increase in stocks, such as dividend payments, bond repayments and others. They reached a value of 1055.3 billion FCFA.

It is also the highest level since 2016. In detail, 300.5 billion FCFA of interest was paid to those who invest on the bonds issued. 97 billion FCFA in dividends were paid by listed companies. Edoh Kossi Amenounve presented these different aspects, as additional information to the analysis of the performance of the regional stock exchange, beyond the simple reading of the evolution of the indices.

"Our stock market action is not a short-term action. We are working for the next 30 or even 50 years. It is true, we are sensitive to the evolution of indices, but this is not the heart of the stock exchange business. We are more there to transform economies, to work for sustainable development. We track market indices and behaviour, and we work to ensure that this is not a discouraging factor for investors. But we are working in the fund on what should ensure that African stock exchanges play their roles," he said, commenting on the issue of index performance.

In this respect, the BRVM has not seen a positive development. Its main indices, the BRVM 10 and the BRVM Composite, ended 2020 with value losses of 12.2% and 8.7% respectively. However, it is the equity segment that has the most individual investors.

Another point of improvement is that of the average return of listed stocks on the market. Referred to as PER, it is noted that at the end of December 2020, it was at 10%. This level of yield remains well above that of bonds, whose average is around 6%. But we note over time that this dividend yield has decreased. In 2016, it was 24.25%.

The BRVM wants to encourage economic actors to use it to mobilize financial resources. With the uncertainties about covid-19, governments and perhaps other companies after Sonatel and the Port of Dakar in 2020 could come and raise debt. But it will also be necessary to find a way to strengthen the liquidity that short-term investors need for their respective strategies. The publication of the first results of 2021 will give a better overview of the new trends.