Cape Verde’s Stock Exchange (CVSE) saw a 12.7% jump in market cap in the first quarter of 2023.
Most of this growth, about 83%, came from bonds and treasury bills. The exchange lists 191 such securities.
Four public companies, nine corporate bonds, and four municipal bonds are also active on the CVSE.
However, trading volume in the primary market dropped 22.38% compared to last year’s first quarter.
This decline is largely due to a 42.39% reduction in treasury emissions. Conversely, interest payments on various bonds rose by 5.7%.
Treasury bonds accounted for 86% of this increase. Also, average interest rates have been falling, aligning with global trends.
New bond issues also made headlines. Four different bonds were issued, totaling around 12.7 million euros.
This amount is nearly 25% of the total bond issues for all of 2022. So, the CVSE is on an excellent path to meet its strategic goals for 2021-2025.
Moreover, financing projects are underway for both companies and local governments.
In another first, the market launched “blue bonds,” attracting both local and international investors.
Demand even exceeded supply by 1.5 times.
In conclusion, the CVSE’s quarter performance indicates strong growth and diversity, promising a bright future for Cape Verde’s financial market.
Background Cape Verde Stock Market
The CVSE’s growth is noteworthy, especially when compared to global markets that have experienced volatility.
Cape Verde’s market focuses more on bonds than Wall Street and the London Stock Exchange.
This could be a cushion against extreme market swings.
The CVSE is emerging as a reliable platform in Africa compared to larger but riskier markets like Johannesburg.
Globally, falling interest rates are a common trend, as seen in the European and U.S. markets.
Cape Verde, the second freest economy in Africa, is following suit, making its bonds potentially attractive to international investors.
These developments align well with Cape Verde’s 2021-2025 strategic goals, signaling a practical roadmap.
In summary, the CVSE offers a stable yet growing investment environment worthy of both local and global attention.