At the end of the week from December 30, 2024 to January 3, 2025, the Price Earning Ratio (PER) of the stock market of the Regional Stock Exchange (BRVM) increased to 11.26x compared to 10.73x the previous week , according to Revue Hebdomadaire, a publication of the Management and Intermediation Company (SGI) CGF Bourse based in Dakar.
The PER is the ratio between the share price and the net profit per share. Its interest is that it allows investors to estimate the price of a share of a company listed on the stock exchange. Generally, the PER ranges from 5 to 40. Between 10 and 17, we consider that the ratio is good. Below, we can consider that the company will soon lose profits. On the other hand, above 17, analysts agree that the company is growing. Likewise, above 25, it is a very good ratio which suggests very strong profits in the future. However, a ratio above 25 can also mean that the company’s shares are in a speculative bubble.
According to the CGF Bourse, the average market return fell from 9.01% on December 27, 2024 to 8.95% on January 3, 2025.
As for the overall market capitalization of the market, it increased slightly by 0.65% during the week under review to 20,580.83 billion FCFA compared to 20,447.64 billion FCFA on December 27, 2024.
In terms of the stock market, the largest weekly increase is achieved by the SETAO Côte d’Ivoire stock. According to CGF Bourse, the action of the Société d’Études et de Travaux de l’Afrique de l’Ouest (SETAO), a subsidiary of Bouygues Bâtiment International, posted a weekly performance of 9.20% at the end of the week going from December 30, 2024 to January 3, 2025, thus achieving the best weekly progress in the stock market. >, analyzes the SGI. SETAO recorded a net loss of 611 million FCFA in the third quarter of 2024 compared to a loss of 1.6 billion FCFA as of September 30, 2023.
-The biggest weekly decline is achieved by the SICABLE Côte d’Ivoire stock. CGF Bourse notes in its review that the capitalization of Société Ivoirienne de Cable declined by 8.77% during the past week, bringing the share price from 1,140 FCFA at the close of the week December 23, 2024 to 1,040 FCFA at the close of this week. The company thus recorded the worst weekly development in the stock market with exchanges involving a volume of 2,790 securities compared to 3,290 securities exchanged during the previous week. In the third quarter of 2024, SICABLE’s net income was in surplus of 1.05 billion FCFA, up 19% compared to 887 million FCFA recorded as of September 30, 2023.
The bond compartment of the sub-regional financial market closed the week of December 30, 2024 with a market capitalization of 10,506.34 billion FCFA compared to a market capitalization of 10,498.67 billion FCFA on December 27, 2024, an increase of 0. 07%. >, underlines CGF Bourse.
At the end of the week under review, the weekly value transacted stood at 1.76 billion FCFA compared to 12.31 billion FCFA the previous week, representing a decline of 85.71% in the overall value transacted on loans. listed bonds. Exchanges on the market mainly concerned 98,005 securities of the bond “EOS.O15 – STATE OF SENEGAL 6.25% 2024-2029” for a total value of 975.15 million FCFA.
Oumar Nourou
