Review: 2015 a ‘challenging and exciting’ year for Trop-X |07 March 2016

Trop-X, the Seychelles Securities Exchange, has described the year 2015 as “a challenging and exciting one” for Trop-X and its broker members.

For 2016, the company is anticipating a promising year with several more total listings (domestic and international).

Trop-X operates markets for the listing and trading of equities, debt, derivatives, FX products and more. Located on Eden Island, Trop-X was launched in November 2012 and went live August 2013 with the listing of Sacos on the Main Board of its Equities Market. Trop-X now has 4 listed stocks on its three equities boards; namely the Main Board, Small and Medium Enterprise Board and Venture Capital Board. 

In 2015, Trop-X continued to show signs of growth in the equities market. The total market capitalisation of the equities market at the end of 2015 was USD 40.7 million, 17 per cent higher than at end of year 2014. While Trop-X’s overall turnover continues to show progress since its inception, total trade value has continued to show positive growth despite having listed only one exchange traded product on the Exchange in 2015.

Broker members of Trop-X have seen an increase in the number of trading accounts opened and a wider participation of retail clients on the trading of stocks.  While retail accounts outnumber institutional accounts by 12 to 1, institutional clients are purchasing more and more shares. We continue to see a rise in foreign clients opening trading accounts with broker members and also a greater participation of local investors on the securities exchange.

The first listed company in Trop-X’s Main Board, Sacos, continues to see significant progress despite having faced structural changes on its Board of Directors and management in late 2015. Market capitalisation of Sacos increased by 36 per cent in 2015 compared to end of 2014. Sacos shares continue to attract local investors causing share price to increase from R112 in January to R140 end of December 2015. (see Fig. 1). A total of 70,000 Sacos shares were traded on the securities exchange representing a share turnover of 3.5 per cent. Uncertificated shares available for trading on the Exchange represent 27% of the total issued shares at the end of 2015 compared to 18% at the end of 2014, this figure increased by 9% over the prior year. In 2015, a total of 45,000 shares were dematerialized.

Based on the 2014 Sacos Annual Report, earnings per share (EPS) was US $1.11 per share compared to US $0.97 per share in the previous year.  The price/equity ratio was 7.10 at end of 2014.  Dividend payout to shareholders was issued in July 2014 at R8.5 per share compared to R6 per share paid out on the same period in 2014. 

Bodco Limited, a company listed on Trop-X’s SME Board, has seen its market capitalisation increase by 21 per cent in 2015 compared to 2014. This increase came as a decision of its board of directors to increase the issued shares to the public by 10 per cent. Trade volumes were relatively low and the share price remained relative rigid as a result during 2015, but Bodco Limited also paid a dividend to its shareholders of R3 per share in July 2015.

Overall, the year 2015 has been a challenging and exciting one for Trop-X and its broker members. For 2016, we anticipate a promising year with several more total listings (domestic and international). Seychelles Breweries is one such listing.

Trop-X is a member of regional and worldwide exchange organisations; it is a full member of Committee of SADC Stock Exchanges (COSSE), African Securities Exchange Association (ASEA) and a correspondent member of the World Federal Exchanges (WFE).  

Contributed