Assessing African Equity Capital Markets: The Mauritius Stock Market

1
Assessing African Equity Capital MarketsThe
Mauritius Stock Market

• Presented by
• Sunil Benimadhu
• CEO
• Stock Exchange of Mauritius
• Corporate Council on Africa
• (New York, February 26, 2004)

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Presentation Outline

• Quick overview of the change on the African
  capital markets landscape
  
• The Mauritius stock market characteristics and
  features
  
• A statistical overview of the performance of the
  Mauritius Bourse
  
• Looking at the Mauritius market from a foreign
  investors perspective.
  
• The future outlook for the market.

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Statistical Data on African Stock Markets (Ex
South Africa)
4
The Mauritius Stock Marketcharacteristics and
features

• Stock Exchange set up in 1989
• Stock Exchange has developed into a reference
  exchange on the continent
  
• Operates in line with standards observable in
  well-established developed stock exchanges
  
• Achieved strong performance over the years
• Attractive investment destination for foreign
  investors.
  

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The Mauritius Stock Marketcharacteristics and
features

• World-class stock exchange infrastructure
• State-of-the art Automated Trading System
• Modern CDS which complies with G-30 and CCSS
  Standards
  
• Listing Rules based on JSE Securities Exchange
  and LSE requirements
  
• Demutualised stock exchange structure which
  ensures proper monitoring and regulation of
  members and market participants.
  
• Activities of the SEM is closely monitored by the
  Financial Services Commission.
  
• A well developed institutional and retail
  investor base.

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The Mauritius Stock Market Characteristics and
Features

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Statistical Overview of Performance of the
Mauritian Bourse(1989-2003)Source Standard
Poors Global Stock Market Factbook
8
Statistical Overview of Performance of the
Mauritian Bourse Top Ten Companies (end 2003)
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The Mauritius Bourse from a foreign investors
perspective

• Bourse which operates in line with international
  standards
  
• No exchange control
• No Capital Gains Tax
• No tax on dividends
• Attractive returns
• Listed Companies with good growth potential
• Sound macro-economic situation with good growth
  perspective.

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The Mauritius Bourse from a foreign investors
perspective Macro-economic outlook

• Mauritius poised to achieve 5 growth in 2004
• Inflation poised to drop from its current 3.9
• Interest rate environment conducive to equity
  investments
  
• Diversification of economic base well on target.
• A reference of political stability and democracy
  among developing countries

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Future Outlook of Mauritius Bourse

• Market poised to offer strong returns, ceteris
  paribus
  
• In spite of record breaking spree, since early
  2003, market still trading at compelling
  valuation levels
  
• Private sector confident about growth
  perspectives.
  
• Listed bellwether stocks poised to offer double
  digit returns.
  

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THANK YOU