Khartoum Stock Market (Bourse)
11 October, 2011
Khartoum, (sudanow.info.sd)-The Khartoum Stock Market objectives are to upgrade the financial industry in Sudan by disseminating the monetary culture, promoting the stock markets performance and reinforcing the country’s economic development.
In order to shed light on those objectives, SUDANOW made the following interview with Stock Market Director Osman Hamad Mohamed Khair:
Q- When was the Khartoum Stock Market founded?
A- The idea of establishing the Stock Market in Sudan dates back to 1962 when several studies were conducted by the Ministry of Finance and the Bank of Sudan in collaboration with the International Financing Board of the World Bank. In 1982The Stock Market bill was passed by the People’s Assembly (parliament) and consequently the establishment of the Stock Market began with setting up the preliminary market of the monetary issues on October 10, 1904. This was followed by establishing the secondary market, the stock exchange market, in January 1995, in which 34 companies were registered. The Stock Market grew up steadily and reached its highest rate of exchange in 2010. The performance of the Khartoum Stock Market was characterized, maybe for the first time, by an inclusive exchange, covering all the Bourse sectors, including the agricultural and insurance sectors and the first monetary issue of Shahamah certificate.
Q- What are the objectives of the Khartoum Stock Market?
A- The Market intend to utilize the available local, regional and international opportunities of financial investment, establishing and cementing relations between the local, regional and international institutions and founding a market that is characterized by fairness, competence and transparency. It plays a key role in the monetary industry field by offering innovative financial services and products of high quality, professionalism and credibility. The market will continue over the coming years carrying out comprehensive financial, administrative, technical and legal reforms to make of it a competent market that seeks to strengthen its role in the sustainable economic development, particularly in relation to the investors and businesspersons dealing with it. The Khartoum Stock Market, moreover, presents proposals on coordination of financial and monetary policies, the capitals movement and supervision of the policies related to development of the medium- and long-term financing resources in Sudan in a way that achieves the financial ad economic stability and ultimately the economic development goals.
Q- What are the market tools for development?
A- The plan for development of the market includes application of the electronic exchange. A detailed plan has been drawn up for introduction of the modern technologies as a key tool for development. The plan provides for enhancement of the general performance of the market, creating of new stock markets and accompaniment of the local, regional and international latest developments. The plan includes 12 tools for the development of the market, which are:
1- Electronic exchange
2- A permanent market headquarters
3- Control and supervision of the market
4- Revision of the market rules and regulations
5- Revision of the market organizational structures
6- Expansion of the market activity
7- Establishment of a board for financial market
8- The human resources
9- The governing body
10- Promotion of the market activities locally and internationally
11- Improvement of the work environment
12- Formation of the agents association
The market has drawn up a plan for creating an appropriate administrative and technical atmosphere to be applied in the near future. The Sultanate of Oman has offered us as a gift six big screens and an expert to train the personnel on systems of exchange, deposit, central registration, clearance, financial settlements, and exchange and market control. The training also covers the data bank, the financial market and publishing and distribution of statements resulting from the exchange.
We have imported two mobile screens equipped with systems of protection against climatic factors of heat and rain and damage resistant. They are also equipped with a running electronic ribbon for presentation of the prices and news of the market and the registered share-holding companies. An operation testing of the main screens and the prices ribbon was conducted successfully prior for the official operation in the coming days.
Q- What are the benefits the market will gain from introducing the electronic exchange system?
A- This system improves the market indicator and enables the investors to purchase the shares of the companies registered in the market in contribution to the development of the market and stepping up investment in such financial bonds as the governmental partnership certificates. The system also adds to the sped of the market in carrying out financial transactions in an absolutely transparent manner that enables the investors to get fair prices for their products, whether certificates, commodities or shares, which are presented in the market. In implementation of its ambitious programmes, the Khartoum Stock Market will set up the following markets:
· Commodities Market:
This is an important financial market where exchange of different commodities and the process of fixing their prices are carried out. These commodities include crops, petroleum, gold and other commodities with emphasis on the current agricultural development process and minimizing dependence on petroleum as a main source of the state revenues.
· Real Estate Market:
This market is for transaction in the real estates in coordination with the Lands, Survey and other specialized agencies by rallying medium- and long-term financial resources through issuing new medium- and long-term stocks of suitable proceeds for attracting local, regional and international investor and contributing to the development of new Islamic financial product.
· Hard Currency market
This market constitutes the greatest activity practiced in the regional and international markets as regards the volume of transactions, the numbers of dealers and the high proceeds of the investors. It also adds to the proceeds of the market and helps stabilize the rate of exchange. This market, moreover, provides wide opportunities of work and investment to all individuals of the community.
Q- In spite of these goals, there is some sort of indifference towards the Stock Market. Would you explain why?
A- I believe this indifference is due to lack of knowledge of the Market and its role and the services it offers. It may also be due to the nature of the Sudanese individual who is inclined to keep his money in a state of liquidity or may be due to fears arising from the recent international financial crisis. In this connection, the Board of Directors has called for intensification of a campaign for disseminating awareness of investment in the financial stocks. More similar campaigns will be launched in the coming days.
Q- Has the secession of the South affected the Stock Market in any way?
A- The secession has not affected the Khartoum Stock Market because there were no significant investments by the southerners in the sectors which are registered in the Market. There was only one company belonging to the southerners and was registered in the Khartoum Stock Market. That was Ivory Bank which was moved to the south, There was no significant transaction in its shares, any way.
Q- Would gives figures on the volume of transactions in the past months?
A- It reached 1,325,825, 376 during the first six months of last year and 1,408,815,666 in the first six months of this year.
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