Cape Verde stock exchange posts record trade volume

2 June 2006

Praia, Cape Verde, 02 June – The Cape Verde Stock exchange (BVCV) this week recorded its highest ever volume of transactions due to the increased value of shares in tobacco company, Sociedade Cabo-Verdiana de Tabacos (SCT), which was recently listed on the exchange.

The stock exchange, which was re-launched at the end of 2005 after a period of stagnation, posted daily volume of US$142,300, the highest ever, according to the bulletin of the stock market regulator.

The most traded stock of the day was SCT, with a total of 1,910 shares, at a price of 6,385 cape Verdean escudos, with buy orders remaining unfulfilled due to high demand.

The company recently distributed the highest dividend of the year amongst Cape Verdean companies, of 577 escudos per share at a total of 138.6 million escudos, or 95 percent of the company’s profit for last year.

The float of almost 22 percent of SCT, together with Banco Comercial do Alântico (BCA), in December last year was one of the measures taken by the stock exchange’s board to re-launch the market.

At the time, demand for SCT shares was almost double that of the available number of shares, which was seen as a sign of increased activity for the market.

As well as floating companies on the market, the authorities also published new legislation to allow greater flexibility in financial operations and encourage private companies to float their capital on the exchange.

BCA, the country’s largest bank, also recently distributed 75 percent of its profits for 2005 as a dividend to shareholders, at a total of 153.8 million escudos.

With the aim of setting up a financial platform on the archipelago, the Cape Verde authorities are preparing three new initial public offerings (IPO’s), of fuel (Enacol) and pharmaceutical companies (Inpharma and Emprofac), as well as new treasury bonds market. (macauhub)