Director General of the Tunis Stock Exchange, Bilel Sahnoun, has stated that 95% of the economy is currently financed by the banking sector.
Speaking on Express FM on Thursday, December 26, he added that the Tunis Stock Exchange financed up to 10% of the economy a few years ago, adding that this rate remains far below that of similar countries where it has reached 30%.
In this context, he called for the need to diversify sources of financing, amend the law and integrate new financial products.
In addition, Sahnoun pointed out that a company can raise funds during its IPO for various reasons, such as future investments, restructuring and the integration of new partners.
On another front, Bilel Sahnoun saw 2024 as a positive year for the stock market. Its main index, the Tunindex, rose by 13%.
He also highlighted the fact that banks account for 50% of the index’s composition, pointing out that the health of the Tunindex is directly linked to that of the banks.
In this context, he affirmed that investors and market participants react favorably when the offer is interesting, following the example of the 2024 national bond issue, stressing that listed companies are resilient, solid and offer good profitability.
He also stressed the need to diversify financial products to include all key sectors of the economy, such as energy, oil, telecommunications, agriculture and tourism, so that the stock market can benefit from greater depth, liquidity and funding resources.
He added that 2025 could be a key year for the Tunis Stock Exchange if the new legislation is adopted.
He also indicated that a law on compulsory listing in certain specific cases could see the light of day.
Applied to certain sectors, investment levels, share capital, number of shareholders and public utilities, this law would allow for the rapid creation of a diversified stock market.
