Algérie : Les banques et établissements financiers du pays ont encore six mois pour augmenter leur capital social, imposé par la Banque centrale
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Denys Bédarride
Saturday 7 May 2022 Last update on Saturday, May 7, 2022 At 7:30 AM

The value of transactions on the equity compartment of the Algiers Stock Exchange increased by 63% in 2021, confirming the recovery of activity in the market, but remains below its pre-pandemic level, according to the annual report of the Stock Exchange Organization and Supervision Commission (Cosob).

Trade on the equity compartment reached 127.907 million dinars (DZD), against 78.458 million DZD in 2019, far from the 248.990 million DZD recorded in 2019 and 205.797 million DZD in 2018.

This activity, underlines the Cosob, was boosted in particular by the exchanges on Biopharm securities which alone accounts for 53% of the transactions on the market and on Alliance Assurances with 30% of the exchanges on the market.

As for the number of securities traded on the market, it increased by +178% after a historic drop of -64.8% in 2020.

In 2021, some 244,399 shares were traded confirming the resumption of activity on the market, after 87,796 shares traded in 2020, 249,696 shares in 2019 and 225,405 in 2018.

However, “the resumption of activity in 2021 did not make it possible to cover the losses recorded during the year 2020 due to the pandemic which divided activity by 3 for exchanges in value and by 2.84 for exchanges in volume”, explains the Cosob.

Trading in volumes during the past year focused mainly on the Alliance Assurances share with 61% of the shares traded, marking a renewed interest in it, which can be explained by its affordable price and by the dividend policy. incentive adopted by the company, according to the report.

The Biopharm title comes in second position in terms of trading volume with 22% of the market share, followed by that of Saidal (14%) and the title of the EGH El Aurassi chain (3%).

Cosob also indicates that the number of exchange transactions amounted to 219 transactions against 179 transactions in 2020, 434 in 2019 and 440 in 2018.

“The small number of transactions on the market testifies to the weakness of the Algiers Stock Exchange and the lack of enthusiasm it arouses among public and private operators”, notes the authority in its report.

Regarding the SME compartment of the Algiers Stock Exchange, the AOM Invest title recorded no transaction on old shares, except for capital increases for the benefit of its historical shareholders.

This compartment has only one company listed since December 12, 2018, admitted with direct registration, following the placement of 10% of its capital with institutional investors.

Market capitalization increases by 6.4%

The bond market, for its part, did not experience any new introductions in 2021. The last bond issue listed on the stock exchange dates back to 2009 and the maturity of the last listed bond issue dates back to 2016.

On the institutional bond market (off-market), four bond issues were in circulation as of December 31, 2021, the total outstanding amount of which amounted to 162.4 billion DZD against 163.8 billion dinars at the end of 2020 , (-1.4 billion DZD).

In addition, the equivalent Treasury bond market (OAT) recorded at the end of 2021, 30 OAT lines listed on the stock exchange.

The overall outstanding amount of OATs amounts to DZD 512.647 billion in 2021 against DZD 518.985 billion in 2020, i.e. a drop of around -1.2% over one year.

The amount issued during the year is around 23.45 billion DZD against 52.626 billion DZD, a decrease of -55.43% over one year. For its part, the amount of OATs maturing in 2021 amounts to 34.094 billion DZD, the report indicates.

The overall market capitalization of the Algiers market stands at 45.640 billion DZD as of December 31, 2021. Compared to the same period of the year 2020, the Algiers Stock Exchange gained 6.43% of its capitalization in 2021 after have lost 10% between July 2019 and December 2020.

This improvement is justified by the recovery in the activity of listed companies and the pressure on demand for securities on two securities in particular, Biopharm and Alliance Assurances, according to the document.

Compared to GDP, market capitalization represents less than 0.5% of GDP in 2021: “These figures provide information on the insignificant contribution of the Algiers Stock Exchange in financing the economy”, underlines Cosob.

During 2021, the Commission did not issue a visa for the issue of bond loans. Similarly, no bond has been admitted to official listing on the Algiers Stock Exchange.

The committee granted, with reservations, its visa to the draft information notice of the company S. Five relating to an operation to increase the share capital by public call for savings, by prior placement on the primary market with institutional investors.

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