(Business in Cameroon) – The Central African Stock Exchange (Bvmac) in Douala, Cameroon, saw a quiet trading day on November 12, 2024, with only 50 shares changing hands. These were shares of the Société Camerounaise de Palmeraies (Socapalm), which an investor bought for CFA2.3 million. Despite this trade, thousands of shares from companies like Socapalm, Safacam, La Régionale Bank, and SCG-Ré remain up for sale with few takers.
At the start of the trading session, 1,319 Socapalm shares were available, but only 50 were purchased, leaving 1,269 still on the market. These shares, along with others from companies in various sectors, are struggling to attract interest. Socapalm is not alone in this; its sister company, Société Africaine Forestière et Agricole du Cameroun (Safacam), which also specializes in palm oil and rubber production, is seeing similarly low demand. La Régionale Bank, a Cameroonian bank, and the Gabon-based reinsurance company SCG-Ré also have unsold shares on the market.
According to the Bvmac’s official trading report from November 12, a total of 2,166 shares remain available but unsold across the board. This includes 1,269 shares of Socapalm, 634 shares of SCG-Ré, 174 shares of La Régionale Bank, and 89 shares of Safacam. The Bvmac report also mentioned that although there were offers to buy and sell Safacam shares, no transactions occurred because the offered purchase price was lower than the asking price.
These companies, currently facing low investor interest, were among the stock exchange’s best performers in 2023. That year saw a total of 28,527 shares traded on the exchange, up from 14,908 shares in 2022. The total transaction value more than doubled, rising from CFA1.5 billion in 2022 to CFA4 billion in 2023. Socapalm, La Régionale Bank, and SCG-Ré all posted strong numbers. Socapalm recorded a 139% increase in transaction value, reaching CFA270 million. La Régionale Bank rose by 54% to CFA56 million, while SCG-Ré saw transactions worth CFA41 million.
In terms of transaction volume, La Régionale Bank led the market in 2023 with 79 transactions, making up 33% of the total trades and marking the second consecutive year it was the most traded stock. Socapalm followed closely with 78 transactions, and Safacam came in third with 44.
Despite the recent positive performance of these companies, the November 2024 Bvmac report does not provide an explanation for why investor interest seems to have waned. Some analysts suggest that the simple fact that shares from successful companies are now up for sale could be causing potential buyers to hold back, leading to increased caution in the market.re cautious.
