Stock Exchange of

Mauritius
By Mr. Annah
29 March 2019
Importance of stock markets
 Economic barometer
 Pricing of Securities
 Safety of Transactions
 Contributes to Economic Growth
 Spreading of Equity Cult
 Providing Scope for Speculation
 Liquidity
 Better Allocation of Capital
 Promotes the Habits of Savings and Investment
Stock Market of Mauritius -
Some Concepts

 Market Capitalisation:
 It is the market value at a point in time of the shares outstanding of a publicly
traded company, being equal to the share price at that point in time multiplied by
the number of shares outstanding.
 Turnover ratio
 It is a measure of stock liquidity calculated by dividing the total number of shares
traded over a period by the average number of shares outstanding for the period.

 Market Concentration
 It is a function of the number of firms and their respective shares in a market.
 A concentration ratio is the ratio of the combined market shares of a given number
of firms to the whole market size.
Terminologies: Bearish vs Bullish
Terminologies

 Bull and Bear Markets, and Short Selling

 Two of the basic concepts of stock market trading are “bull” and “bear”
markets.
 The term bull market is used to refer to a stock market in which the price of
stocks is generally rising. This is the type of market most investors prosper in,
as the majority of stock investors are buyers, rather than short sellers, of
stocks.
 A bear market exists when stock prices are overall declining in price.
 Market Indices
 SEMDEX:
 The price of all shares, which must imperatively be listed on the Official Market, can be analysed and
interpreted using the SEMDEX. (Stock Exchange of Mauritius Index)

 SEMTRI
 Total Return Index which provides information to local and international investors about the performance of
the local market. Coupled with price movement of stock, SEMTRI also gives information to investors about
total return which adds the capital gains or losses on stocks and gross dividends obtained on these stocks.
 SEM 10
 The Stock Exchange of Mauritius (SEM) launched the index SEM-10, comprising shares listed on its Official
Market on 2nd October 2014. Designed to meet international standards and provide a larger and more
attractive investible benchmark for both domestic and foreign market participants, the SEM-10 comprises
the ten largest eligible shares of the Official Market, measured in terms of average market capitalization,
liquidity and investibility criteria.
Stock broking companies

 AXYS Stockbroking Ltd

 Capital Market Brokers Ltd
 MCB Stockbrokers Ltd
 SBM Securities Ltd
 Swan Securities Ltd
Listing rules and fees

 Please refer to website of the Stock Exchange of Mauritius

CDS
 The Central Depository & Settlement Co. Ltd (CDS) was established by the Stock
Exchange of Mauritius in 1996 to provide centralized depository, clearing and settlement
services for the Mauritian equity and debt markets. The company became operational in
January 1997. The setting up of CDS has brought about prompt and efficient clearing
and settlement of trades while at the same time reducing some of the inherent risks in
the process. The CDS has brought the Mauritian stock market on an equal footing with
developed markets as far as the clearing and settlement infrastructure is concerned.

 Please refer to website of SEM for more information and advantages of CDS.
Milestones of the SEM: 2001 - 2009
 2001 - 2009 Inroads towards regulatory & technology reforms

 SEM’s transformative momentum took a new turn in 2001 when its capital
structure was demutualized in 2000. The Mauritius Bourse in fact became the
first Exchange in Africa in June 2001, to move away from an open-outcry
system in 1991 to a fully automated and electronic stock market
infrastructure.

 Please refer to website of the SEM

Milestones of the SEM: 2010 - 2019

 2010 - 2019 Internationalisation & Multi-Asset Class Orientation

 multi-currency platform (USD/EUR/GBP/ZAR) of a variety of new asset-
classes of securities, such as Global Funds, Depositary Receipts, Mineral
Companies and Specialist securities (including Global Business Companies
(GBC), Specialist Debt instruments, Ex-change Traded Funds (ETFs), Exchange
Traded Notes and Structured Products).
 2011 saw the listing of the first international company listed, traded and
settled in foreign currency, namely USD. Post-2011 in fact witnessed tangible
results in terms of new products with an international flavour as well as
enhanced trading and capital-raising activities.
Milestones of the SEM: 2010 - 2019
 In September 2015, the SEM launched its sustainability index (SEMSI), to provide a
robust measure of listed companies against a set of internationally aligned and locally
relevant environmental, social and governance (ESG) criteria. During the same year, the
SEM also became a signatory and Partner Exchange of the United Nation’s Sustainable
Stock Exchanges initiative.
 In September 2016, the SEM added two new indices to its suite of indices, namely the
SEM-All Share Index (SEM-ASI) and the SEM-VWAP Index. SEM-ASI is an index which
tracks the price performance of all companies listed on the Official Market, including
the foreign-currency denominated companies.
 The creation of SEM-ASI was inspired by the listing on the SEM of a growing number of
GBCs, Specialist Debt Instruments, ETFs, Structured Products and DRs. Similarly, the SEM
also successfully attracted the listing of a growing number of debt instruments over the
years and hence it became opportune in 2017 to create a Bond index (SEM-BI). In 2016,
the SEM infact became the first African Exchange to list a Masala Bond.
Milestones of the SEM: 2010 - 2019

 In 2018, SEM crossed the mark of 100,000 retail shareholders; representing

nearly 20% of the Mauritian working population, a figure comparing favourably
with some large emerging and developed markets.
 By end-2018, a triple-digit-number of securities (including both local and
foreign securities) were listed on the SEM. Between 2009 and 2018, capital
raised by listed issuers on the SEM to fund their growth and development
crossed the USD 6 billion mark.
Milestones of the SEM: 2010 - 2019

 In 2018, in line with its strategy to digitalise its investor services, SEM
launched the mySEM mobile app. mySEM is available for free download on
PlayStore for Android users and App Store for iOS users for mobile devices.
 mySEM app enables investors, wherever they sit in the world, to follow the
market in real-time, seize market opportunities and trade in real-time and
online access to their CDS accounts. mySEM provides investors seamless
access to a wide variety of key listed company data in real time, including
company specific order books, highs and lows, five best bids and five best
asks, and other relevant company-specific data
Regulatory Bodies

 FSC – regulator of the non-bank financial markets in Mauritius which

comprises Securities Exchanges
Main facts of the SEM

 The Stock Ex change of Maur itius has been oper ational for 30 year s.

 It oper ates tw o mar kets:

 The Official Mar ket - a mar ket for lar ge companies

 The Development and Enter pr ise Market (DEM) - a mar ket for small and medium enter pr ises (SMEs)

 1989: The stock mar ket started its activities with 5 listed secur ities.

 2019: 200+ secur ities ar e listed on the Stock Ex change today.

 1989-2018: Rs 250+ billion has been r aised by the listed companies to finance their pr ojects.

 The stock has mor e than 100,000 investor s on its r egister today.

 The total mar ket capitalization has cr ossed the mar k of Rs 400 billion.

 Financial instr uments tr aded on the Stock Ex change ar e:

 Or dinar y Shar es

 Pr efer ence Shar es

 Debt Secur ities

 Specialist Debt Secur ities

 Ex change Tr aded Funds (ETFs)

 Str uctur ed Pr oducts

 Depositor y Receipts (DRs)

 Collective Investment Schemes and Mutual Funds

 Bank of Maur itius Bonds

 Gover nment Bonds