12 September 2010
Tunis has seen four companies float their shares on the Tunis Stock Exchange in 2010, making it the second busiest market in the region after Saudi Arabia. Combined, the four Tunisian entities have raised $170 million, according to data from Zawya IPO Monitor.
Tunisia's real GDP in the first quarter of 2010 grew by 4.5% in the first quarter, year-on-year, but is expected to ease to 3.8% for the entire year, according to the International Monetary Fund's (IMF) latest report on the country.
"Tunisia's growth could increase gradually and reach an average of about five per cent over 2010-14, provided that policies and reforms planned by the authorities aimed at enhancing Tunisia's competitiveness, developing new markets, and supporting new sources of growth in sectors with high added value bear fruit," a recent IMF report said (read the report).
Last year, Tunisia's economy grew by a modest 3.1% as the global downturn took its toll. "With growth in Tunisia's main trading partners projected at a mere 1.2% in 2010 and 1.5% in 2011, the country's economic recovery remains on fragile footing. Moreover, downside risks to prospects for recovery in Europe--by far Tunisia's largest partner in terms of exports, tourism receipts, workers' remittances, and foreign direct investment--have risen significantly in recent months, posing risks to the country's short-term outlook."
The fund attributes the growth in 2010, to a recovery in demand for manufacturing exports (primarily in mechanical and electric industries, and textiles), although the agriculture sector will likely be weaker than last year. Inflation edged up slightly at 5% (y-o-y) in May 2010, due to rising food prices, but non-food price increases have remained very moderate at around 3%.
Overall, the Tunisian economy has fared relatively well during the current crisis, but the country's key challenge is to boost job-generating growth and lower unemployment, the IMF concludes.
FOUR IPOS REFLECT SOUND ECONOMY
The country's financial sector's performance remained strong despite the global financial crisis, says the IMF. "Banks do not rely on external financing and have benefited from a healthy growth in deposits (13 percent in 2009). Moreover, they had little exposure to the export sectors most affected by the crisis which are primarily offshore financed. The financial soundness indicators continued to improve."
With a market cap of $10bn, the country's stock exchange may be one of the smallest in the region, but it has beaten its peers this year in terms of new IPO listings. Tunis has seen four companies float their shares on the Tunis Stock Exchange in 2010, making it the second busiest market in the region after Saudi Arabia. Combined, the four Tunisian entities have raised $170 million, according to data from Zawya IPO Monitor.
See profiles of the four companies that floated their shares on the Tunis SE this year: Carthage Cement, ENNAKL Automobiles,Tunis RE, Assurances SALIM
The Tunis exchange has been one of the best performing in the region, rising 26% to date, reflecting the strong strong earnings of listed companies -- most notably banks -- as well as abundant liquidity in an economy with relatively limited alternatives for financial investment.
"Despite recent increases, market capitalization of 21 percent of GDP at end-2009 remains small relative to other stock exchanges in the region and the impact of a potential correction in stock prices would likely be limited," the IMF notes.
Yadullah Ijtehadi © Zawya Select 2010
Tunis has seen four companies float their shares on the Tunis Stock Exchange in 2010, making it the second busiest market in the region after Saudi Arabia. Combined, the four Tunisian entities have raised $170 million, according to data from Zawya IPO Monitor.
Tunisia's real GDP in the first quarter of 2010 grew by 4.5% in the first quarter, year-on-year, but is expected to ease to 3.8% for the entire year, according to the International Monetary Fund's (IMF) latest report on the country.
"Tunisia's growth could increase gradually and reach an average of about five per cent over 2010-14, provided that policies and reforms planned by the authorities aimed at enhancing Tunisia's competitiveness, developing new markets, and supporting new sources of growth in sectors with high added value bear fruit," a recent IMF report said (read the report).
Last year, Tunisia's economy grew by a modest 3.1% as the global downturn took its toll. "With growth in Tunisia's main trading partners projected at a mere 1.2% in 2010 and 1.5% in 2011, the country's economic recovery remains on fragile footing. Moreover, downside risks to prospects for recovery in Europe--by far Tunisia's largest partner in terms of exports, tourism receipts, workers' remittances, and foreign direct investment--have risen significantly in recent months, posing risks to the country's short-term outlook."
The fund attributes the growth in 2010, to a recovery in demand for manufacturing exports (primarily in mechanical and electric industries, and textiles), although the agriculture sector will likely be weaker than last year. Inflation edged up slightly at 5% (y-o-y) in May 2010, due to rising food prices, but non-food price increases have remained very moderate at around 3%.
Overall, the Tunisian economy has fared relatively well during the current crisis, but the country's key challenge is to boost job-generating growth and lower unemployment, the IMF concludes.
FOUR IPOS REFLECT SOUND ECONOMY
The country's financial sector's performance remained strong despite the global financial crisis, says the IMF. "Banks do not rely on external financing and have benefited from a healthy growth in deposits (13 percent in 2009). Moreover, they had little exposure to the export sectors most affected by the crisis which are primarily offshore financed. The financial soundness indicators continued to improve."
With a market cap of $10bn, the country's stock exchange may be one of the smallest in the region, but it has beaten its peers this year in terms of new IPO listings. Tunis has seen four companies float their shares on the Tunis Stock Exchange in 2010, making it the second busiest market in the region after Saudi Arabia. Combined, the four Tunisian entities have raised $170 million, according to data from Zawya IPO Monitor.
See profiles of the four companies that floated their shares on the Tunis SE this year: Carthage Cement, ENNAKL Automobiles,Tunis RE, Assurances SALIM
The Tunis exchange has been one of the best performing in the region, rising 26% to date, reflecting the strong strong earnings of listed companies -- most notably banks -- as well as abundant liquidity in an economy with relatively limited alternatives for financial investment.
"Despite recent increases, market capitalization of 21 percent of GDP at end-2009 remains small relative to other stock exchanges in the region and the impact of a potential correction in stock prices would likely be limited," the IMF notes.
Yadullah Ijtehadi © Zawya Select 2010
