Tunis Stock Exchange: A New Era of Transparency and Stability
This week, the Tunis Stock Exchange (BVMT) unveiled a revamped daily bulletin, boasting improved information quality. Notably, the bulletin now features detailed statistics for the bond market, which has been the most active primary market segment for years.
Market Performance
The secondary market saw a total trading volume of 126,400 MTND, averaging 0.585 MTND per day. Transactions were dominated by Treasury-issued securities (73,166 MTND, accounting for 57.9% of the total) and corporate bonds (53,234 MTND, making up 42.1%).
A 16% Year-over-Year Decline: A Cause for Concern?
Compared to previous years, the trading volume has decreased by 16%. While this may seem alarming, we believe this decline can be attributed to two key factors.
Factor 1: OPCVM's Net Collections
Open-ended investment companies (OPCVMs) are thriving, with high returns and low attractiveness in the stock market for risk-takers and long-term savers. As a result, there is no need to liquidate positions to ensure required treasury during buyback operations, providing stability to assets under management and better visibility for returns. These vehicles accounted for 79.3% of purchases and 50.9% of sales.
Factor 2: Institutional Dominance
The bond market is inherently dominated by institutional investors, who typically adopt a hold-to-maturity strategy, allowing them to reap high returns on current investments. With no other options, diversification becomes a crucial strategy to implement.
A Safe and Lucrative Investment Opportunity
If you're interested in long-term, secure savings, now is the perfect time to explore the Tunis Stock Exchange's bond market segment.
