Capital Markets
From The Report: Tunisia 2019
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Although Tunisia’s financial market has maintained a pattern of significant growth in recent years, progress has taken place in the context of economic uncertainty and a need for structural reform. The stock market’s role in financing the economy is mod¬est when compared to that of the banking system, and the depreciation of the dinar has introduced a number of additional challenges. Despite its potential to be a reliable source of financing for small and medium-sized enterprises, Tunisia’s alternative market has so far fallen short of expectations. Efforts to attract new companies can be hindered by high returns on bank deposits, which discourages higher-risk investment alternatives like the stock exchange. However, as the economic recovery continues its upwards trend and various regulatory changes make their desired impact, the Tunis Stock Exchange is positioning itself to benefit over the medium term. This chapter contains interviews with Bilel Sahnoun, CEO, Tunis Stock Exchange; and Walid Saibi, General Manager, Tunisie Valeurs.

Articles from this Chapter

Overview

Stock in trade: Economic recovery can support the capital markets, yet a more diversified composition of firms and investors is needed
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Although Tunisia’s financial market has maintained a pattern of significant growth in recent years, progress has taken place in the context of economic uncertainty and a need for structural reform. The stock market’s role in financing the economy is modest when compared to that of the banking system, and the depreciation of the dinar has introduced a number of additional challenges. Market authorities are aiming to inject more dynamism into the stock exchange by improving transparency, security…

Interview

Revitalising the market: Bilel Sahnoun, CEO, Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT), on the new products and measures being introduced to improve the bourse’s international standing
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Interview:Bilel Sahnoun What could the BVMT do to strengthen its position on the international stage? BILEL SAHNOUN: Although in line with international standards, the BVMT needs to be modernised in order to be up to date with the overall Tunisian financial sector. A reform project is currently being launched with the support of the European Bank for Reconstruction and Development, the results of which should start to be seen by the end of 2019. The project targets three key areas: broadening…

Analysis

Win-win situation: New valuation techniques and regulatory incentives cater to institutional investors
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Activity on the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) has traditionally been characterised by demand from relatively small investors, as well as a limited amount of international investment. Meanwhile, the contribution of institutional investors has been marginal, negatively affecting the development of the country’s capital markets. However, a move towards mark-to-market valuation, coupled with new regulatory incentives, is expected to boost institutional investment…

Analysis

Finding an alternative: Opportunities to boost small and medium-sized enterprise financing on the alternative market
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In December 2007 the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT) launched an alternative market with considerably softer entry requirements than those on the principal market. The project was set up to provide small and medium-sized enterprises (SMEs) with a means to raise the funds necessary for their development. After a decade of existence the market has made certain advances, but overall growth has been slow, with work remaining to be done to boost trading activity and…

Interview

Targeting diversity: Walid Saibi, General Manager, Tunisie Valeurs, on widening stock exchange offerings and participation
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Interview: Walid Saibi In what ways can the government facilitate foreign investment on the Tunis Stock Exchange (Bourse des Valeurs Mobilières de Tunis, BVMT)? WALID SAIBI: There are no obstacles to foreign investment in the stock exchange on paper. The exchange’s technical, legal and regulatory framework is in line with international standards. Furthermore, there are several investment opportunities in regional companies operating across multiple sectors that have a positive outlook. However,…

Overview

Indexed growth: Inclusion in global indices often results in a greater flow of funds to capital markets, but it is just one aspect of the economic picture
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The period of easily raising funds from abroad seems to be coming to an end for emerging markets around the world. In the new environment of higher interest rates in the US and increased competition for capital flows, portfolio managers are becoming more selective with where they place their money. One way for developing nations to ensure that their financial markets can continue to attract foreign funds and remain sustainably liquid is by being included in well-regarded benchmark indices. In addition to drawing in fund managers, inclusion in such indices requires specific standards that indicate that the participating countries apply certain…

Overview

Indexed growth: Inclusion in global indices often results in a greater flow of funds to capital markets, but it is just one aspect of the economic picture
OBG
plus

The period of easily raising funds from abroad seems to be coming to an end for emerging markets around the world. In the new environment of higher interest rates in the US and increased competition for capital flows, portfolio managers are becoming more selective with where they place their money. One way for developing nations to ensure that their financial markets can continue to attract foreign funds and remain sustainably liquid is by being included in well-regarded benchmark indices. In addition to drawing in fund managers, inclusion in such indices requires specific standards that indicate that the participating countries apply certain…