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HomeFeatured NewsTunisia: Financial market funding of private investment: 8.2% in 2008

Tunisia: Financial market funding of private investment: 8.2% in 2008

According to the Financial Market Council’s annual report, the 2008 financial year was marked by IPO of two new companies, ARTES  “Tunisian Automotive Network and Services” and “Poulina Group Holding” (PGH), bringing to 50 the number of listed companies.

The report, submitted on Friday to the Head of State, notes that these new flotations have contributed to the diversification of sectors present on the stock market and consolidated market capitalization which reached 8,301 million Tunisian dinars (MTD) in 2008 compared with 6,527 MTD in 2007, representing 16.3% of GDP in 2008 and 14.5% in 2007.
Funds raised for direct funding of the private sector have appreciated, the report noted. These funds reached 644 MTD in 2008, compared with 490 MD in 2007, thereby improving the rate of contribution of the financial market to the financing of private investment; this rate was brought up to 8.2% against 7.5% in 2007.

In the secondary market, the report refers to the upward trend experienced by the Tunindex index since the beginning of 2008 and until the first fortnight of September of that year. This index then depreciated from October and that had to do with the recession that hit most of the global financial markets and on account of the release of some foreign funds which were looking for liquidity to cope with the fallout of the crisis.
Nonetheless, the fall of the Tunindex was cushioned. The index closed in 2008 with a 10.7-percent increase, thanks to the good performance of the Tunisian economy which has continued a satisfactory rate of growth and also through the swift and efficient measures taken by public authorities to contain this fall.

Regarding activities of agencies of collective investment in transferable securities, the report indicates that this activity registered in 2008 a significant increase. The number of active organizations rose from 57 in 2007 to 76 in 2008 and the value of net assets climbed by 19.7%, reaching 3,642 MTD in 2008, against 3,042 MD in 2007.

The report notes that beyond these overall satisfactory results, compared with those recorded by other stock markets, they remain below targets set in particular concerning the contribution of the financial market to financing private investment.

With regard to the outlook, the report underlines the expected contribution of the training institute of the Tunis Stock Exchange; this institution is called to intensify its activity of training financial market staff.

Furthermore, the Financial Market Council seeks to promote the use of new Information and Communication Technology (ICT).

Other accomplishments cited by the report are finalization of the draft law on offshore financial services and the setting up of the Tunis Financial Harbour. These two achievements will surely contribute, according to the report, to making of Tunis a regional financial centre.

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