The Regional Securities Exchange BRVM entered 2026 after an exceptional year in 2025, during which market capitalization posted record gains. The year has begun, however, with a sharp slowdown in trading volumes, raising fresh questions about the depth and durability of liquidity in the WAEMU market after a period of unusually strong expansion.

The total market capitalization of the BRVM, the regional stock exchange of the West African Economic and Monetary Union based in Abidjan, rose by 3,198 billion CFA francs (about $5.5 billion) between late 2024 and late 2025.

This increase was only marginally driven by new listings. Instead, it largely reflected a broad revaluation of existing stocks, supported by stronger corporate earnings and a gradual return of investor interest in equities.

This repricing has strengthened the market’s technical base, improving its ability to absorb short-term corrections.

Since the start of 2026, market indices have edged down 0.98% as of January 12. The pullback appears to be a phase of technical consolidation rather than a signal of a trend reversal. Over a longer horizon, overall market performance remains positive, underpinned by the price gains recorded in 2025 and by dividend income, which continues to account for a significant share of total returns on BRVM equity portfolios.

Trading activity was also particularly strong in 2025, with annual turnover exceeding 274.4 billion CFA francs (around $472 million). This momentum was driven by solid earnings reported by listed companies, which supported prevailing valuation levels, and by generous dividend payout policies. Dividends declared and largely paid in 2024 totaled nearly 632 billion CFA francs (about $1.09 billion), offering real yields of between 7% and 8% and reinforcing the relative appeal of equities compared with fixed-income instruments.

Liquidity slowdown emerges in early 2026

The start of 2026 has marked a clear shift in trading volumes. January figures point to a steady loss of momentum, with 11 billion CFA francs traded in January 2023, 9.6 billion CFA francs in January 2025, and around 5 billion CFA francs as of January 12, 2026. Although partial, the latest data suggest a contraction in liquidity as the market enters a digestion phase following the exceptionally high turnover seen last year. The BRVM’s ability to sustain trading activity in the coming months will therefore be a key risk to watch in the short term.

This decline in volumes has not, so far, been accompanied by any weakening in fundamentals. Cumulative figures through the end of September 2025 point to continued growth in revenues and profits among listed companies. Consolidated revenue is expected to exceed 7,641 billion CFA francs (around $13.15 billion), while aggregate net income is estimated at more than 1,220 billion CFA francs (about $2.1 billion).

Large-capitalization stocks continue to anchor market performance. Sonatel reported net profit of 311 billion CFA francs, up 8%, while the Ecobank Group posted nearly 280 billion CFA francs in earnings, an increase of 10%.

Against this backdrop, the modest correction observed since the beginning of the year appears largely technical and does not reflect any deterioration in corporate earnings capacity. The BRVM therefore presents a mixed picture: solid fundamentals and historically elevated valuations, alongside a short-term retreat in liquidity.

The release of full-year results will be the main catalyst for the remainder of 2026, helping to determine whether the current slowdown is a temporary adjustment or an early sign of more structural constraints on market depth and turnover.

Idriss Linge