Cape Verde stock market returns to trade December 15

14 December 2005

Praia, Cape Verde, 14 Dec – The Cape Verde Stock Exchange (BVC), which had halted its activities back in 1999, will be reactivated Thursday in a government move designed to definitively install a financial market on the archipelago, officials said Wednesday.

The stock market will begin trading with a list of stocks including banks Banco Comercial do Atlântico (BCA) and Caixa Económica (CECV), and tobacco company Sociedade de Tabacos (SCT), as well as 40 Cape Verde treasury bonds.

In order to encourage trade at the re-launch of the market, the cape Verde government earlier this week concluded a public offering of 63,000 shares in SCT, representing 26.35 percent of the company’s capital.

The state expects to make some 3.6 million euros from the sale.

Over 129,000 shares in SCT were subscribed by investors, more than double the available amount, which the Cape Verde authorities see as being an encouraging sign for the future of the archipelago’s financial market.

The BVC was created six years ago but saw little volume of trade. In order to reactivate the market the Cape Verde authorities issued a new law to allow more flexibility in financial operations and encourage private companies to be listed.

The International Monetary Fund (IMF) estimates that the Cape Verde economy will grow by 6 percent this year, against 2004, and projects it to increase by 7 percent in 2006. (macauhub)