(Ecofin Agency) - Last year, the Algiers Stock Exchange attracted a very poor number of investors, the market regulator said in its annual report.
In terms of value and volume of transactions, the market was very dynamic but globally, operations only concerned one stock (Biopharm), the Commission for the Organization, and Supervision of Stock Exchange Operations in Algeria (Cosob) said. The pharmaceutical group Biopharm, which was the main player on the market in 2019, put up for sale nearly 29,023 shares under a contract aimed at strengthening its liquidity. Also, the number of securities accounts (accounts holding financial securities such as shares, bonds, etc. exchangeable on the stock exchange), which have been relatively stable for the past four years, fell to 21,448 in 2019.
“Statistically, this represents the equivalent of 5 investors per 10,000 Algerians, which is a very negligible figure,” the regulator explained. To improve this situation, Cosob proposes the admission of about ten public and private companies on the stock market, which will help improve the attractiveness of the stock market and support household savings.
For the time being, only one company, AOM Invest Spa, is listed on the SME compartment of the Algiers Stock Exchange. In 2019, no approval for the issue of bonds was issued by Cosob and no bonds were admitted on the official listing of the Algiers Stock Exchange.