Tunis Stock Exchange

Presented by
 Summary
• Glossary
• Tunis Stock Exchange
• Product
• Performances
• References
 Stock Exchange
• A stock exchange is an entity that provides
"trading" facilities for stock brokers and traders,
to trade stocks, bonds, and other securities. Stock
exchanges also provide facilities for issue and
redemption of securities and other financial
instruments, and capital events including the
payment of income and dividends. Securities
traded on a stock exchange include shares issued
by companies, unit trusts, derivatives, pooled
investment products and bonds.
 Stock Exchange
• To be able to trade a security on a certain
stock exchange, it must be listed there.
Usually, there is a central location at least for
record keeping, but trade is increasingly less
linked to such a physical place, as modern
markets are electronic networks, which gives
them advantages of increased speed and
reduced cost of transactions. Trade on an
exchange is by members only.
 Stock Exchange
• The initial offering of stocks and bonds to
investors is by definition done in the primary
market and subsequent trading is done in the
secondary market. A stock exchange is often
the most important component of a stock
market. Supply and demand in stock markets
is driven by various factors that, as in all free
markets, affect the price of stocks
 Stock
• The capital stock (or just stock) of a business
entity represents the original capital paid into
or invested in the business by its founders. It
serves as a security for the creditors of a
business since it cannot be withdrawn to the
detriment of the creditors. Stock is distinct
from the property and the assets of a business
which may fluctuate in quantity and value.
 BONDS
• In finance, a bond is a debt security, in which
the authorized issuer owes the holders a debt
and, depending on the terms of the bond, is
obliged to pay interest (the coupon) and/or to
repay the principal at a later date, termed
maturity. A bond is a formal contract to repay
borrowed money with interest at fixed
intervals.
 BONDS
• Thus a bond is like a loan: the issuer is the
borrower (debtor), the holder is the lender
(creditor), and the coupon is the interest. Bonds
provide the borrower with external funds to
finance long-term investments, or, in the case of
government bonds, to finance current
expenditure. Certificates of deposit (CDs) or
commercial paper are considered to be money
market instruments and not bonds. Bonds must
be repaid at fixed intervals over a period of time.
Difference between Stocks and Bonds
• Bonds and stocks are both securities, but the
major difference between the two is that (capital)
stockholders have an equity stake in the company
(i.e., they are owners), whereas bondholders
have a creditor stake in the company (i.e., they
are lenders). Another difference is that bonds
usually have a defined term, or maturity, after
which the bond is redeemed, whereas stocks may
be outstanding indefinitely. An exception is a
consol bond, which is a perpetuity (i.e., bond
with no maturity).
 Security
• A security is a fungible, negotiable instrument
representing financial value.[1] Securities are broadly
categorized into debt securities (such as banknotes,
bonds and debentures) and equity securities, e.g.,
common stocks; and derivative contracts, such as
forwards, futures, options and swaps. The company or
other entity issuing the security is called the issuer. A
country's regulatory structure determines what
qualifies as a security. For example, private investment
pools may have some features of securities, but they
may not be registered or regulated as such if they meet
various restrictions.
 Stock Exchange
• The securities admitted to the official list of the Stock Exchange are
listed on the capital equities markets which include the principal
market and the alternative market or on the bond market or on the
market of the debt securitization funds.
• The capital equities markets are opened to public limited
companies which meet the criteria of opening to the public, of size,
of performance, of liquidity and of transparency
• The bond market is opened to debt securities issued by the State or
the Local Public Collectivities, as well as all other debt securities
issued by the organisms under civil law and admitted for trading on
this market.
• The market of the debt securitization funds is opened to the
securities issued by the debt securitization funds.
 Tunis Stock Exchange History:
• The Stock Exchange is the place where investors
buy and sell capital equities or debt securities
issued by companies, the State and local
collectivities. As a market it ensures the liquidity
of the securities held by the investors. This
liquidity provides the issuers with funds
necessary to increase their expansion by calling
for public shareholding. For this purpose, the
Stock Exchange constitutes one of the major
sources of financing the economy.
 Mission
*The management of the Tunisian transferable securities
market by:
• The admission of new securities to the Stock Exchange
official list;
• The organization of exchanges and the quotation of
securities under the best conditions of fairness, safety
and transparency;
• The diffusion of exchange information.
*The promotion and the improvement of the exchange
market.
 Place
• The Stock Exchange is the heart of the financial market
where:
• Only approved brokerage firms conduct the negotiation of
securities;
• The Company of deposit, clearing and settlement of
securities (Tunisian Central Depository) ensures payment in
cash and the delivery of securities;
• The Market Guarantee Fund intervenes between the
brokers to guarantee the settlement of transactions;
• The Financial Market Council, as a body controlling the
market, oversees the protection of the investors and the
good functioning of the Stock Exchange markets.
•
 The stock exchange markets:

• 1. The Stock Exchange official list is reserved for the

negotiation of securities which meet the admission
requirements provided for in the Stock Exchange
regulations. It includes the following markets:
• The Principal Market reserved for the large and high
performance companies;
• The Alternative Market reserved for small and
medium-sized companies which have promising
prospects;
• The Bond Market reserved for the negotiation of debt
securities.
 The stock exchange markets:

• 2. The parallel market is opened to the

securities of pubic shareholding companies
not admitted to the Stock Exchange official
list.
• 3. The transactions on the securities of private
shareholding companies are subject to a
formality of registration at the Stock
Exchange.
 The advantages offered by the stock exchange To
investors and savers:
:
• Liquid and long- term remunerative
investments;
• Permanent valuation of the capital;
• Tax exemption on dividends and capital gains;
• Tax exemption for the holders of a “Savings
Account in Shares;
• The statute of shareholder and co- owner of
well-known companies.
 The advantages offered by the stock
exchange To compagnies:
• Leverage of capital directly from investors, at a
lower cost;
• Reinforcement of the name and the brand
image of the company;
• Tax exemption for the five years following
introduction in the Stock Exchange;
• Continuity by the facilitation of the
transmission.
 The stock exchange key dates:

• February 1969: Creation of Tunis Stock Exchange as public

establishment.
• November 1994: Reorganization of the financial market
which separates the functions of control and management
of the Stock Exchange market.
• November 1995: Creation of the Tunis Stock Exchange, a
limited company held by the brokers, 24 in total.
• October 1996: Set up of the trading electronic system NSC.
• April 1998 : Launching of the index TUNINDEX (Base 1000 in
December 31, 1997).
• December 2007: Launching of the Alternative Market, for
small and medium-sized companies, migration to the latest
version of the electronic trading system V900.
 Functioning :
• The current electronic trading system run by
Tunis Stock Exchange was established on
October 25th, 1996. The system was
developed by AtosEuronext and upgraded by a
new version in December 3rd, 2007 (V900).
All listed securities are traded on the system.
Orders entered by brokers at their terminals
are forwarded to the central system and
matched.
 Functioning
2- Continuous trading :
The most liquid shares are traded continuously between 9am to
14:10 pm
Continuous trading; orders arriving in the system are immediately
executed if the central order book contains an order or several
orders of the contrary kind at a compatible price. If there are no
such orders, the incoming order is recorded, remaining on the order
book at the specified limit.
2- Fixing:
The less liquid are traded in fixing mode three time a day, at 10
am,11:30 am and 13 pm.
2. Auction; when the order accumulation phase ends, buy and sell
orders are centrally matched through an auction procedure to
establish an auction price The auction price of a share is its
reference price and is used as a basis for the following auction.
 The orders types
• - Market on open order: This order is accepted during the pre-
opening phase and during the period in which the orders have been
accumulated. It is executed during the fixing. Any remaining
unexecuted portion is transformed into a limit order and enters the
Central Order Book at the fixing price.
• - Limit order: It is the order by which the buyer fixes the maximum
price at which he is prepared to buy and the seller the minimum
price at which he is prepared to sell his securities. It is executed at
its specified price limit or at a better price. The price limit must be
consistent with the tick specified by decision of the Stock Exchange.
However, submitting a limit order with a validity day outside the
limit thresholds authorized and fixed by a decision of the Stock
Exchange is prohibited.
 The orders types
• - Market -to-limit order: this order is accepted only in continuous
trading, it is executed immediately at the best opposite price limit,
any remaining unexecuted portion is automatically transformed
into a limit order at the last executed price and added to the Central
Order Book.
- Market order: it is unlimited order to be executed at the next
prices determined by the trading system at the maximum of the
quantity immediately available, any remaining unexecuted portion
is added to the Central Order Book for execution as soon as
possible at the next prices.
• - Stop order: is bid or ask order which is triggered when a specified
price limit is reached in trading. In the case of a stop loss order, a
market order shall then automatically be generated. In the case of a
stop limit order, a limit order shall automaticallybe generated.
 Market index
• The first market index was launched in September 30th 1990 under
the name of BVMT index.
• TUNINDEX index and Sector Indices were created in December 31st
1997 and December 31st 2005 respectively.
• Theses indices aim to provide managers, analysts and savers with a
measure of portfolios performance and stock market activities as a
whole.
• The TUNINDEX index and the Sector Indexes are no longer weighted
by the total market capitalization but by the free float adjusted
market capitalization. This method of calculation, already used for
other major indices around the world, ensures greater coherence
between the real nature of companies on the market and how it is
expressed in the indices.
• Products
 Trading Account (Compte Titre)

• The trading account gives clients access to a

wide range of services, including safekeeping
of securities, brokerage on the Tunis Stock
Exchange, periodic account statements and an
access to highly qualified investment advisors.
 Tunisie Sicav
• The flagship product for individual investors is Tunisie
SICAV, the first fixed income mutual fund in Tunisia. Tunisie
SICAV started in 1992. Today the fund has about 10.300
subscribers and over 380 million Tunisian Dinars under
management. This fund offers:

• Low Risk
Tunisie SICAV is an instrument for risk averse investors. It
invests in bonds and treasury bills.

• Good Return
TUNISIE SICAV has always been an attractive fixed income
mutual fund. Its return stood at 4.04% in 2009.
 Tunisie Sicav
• Total Liquidity
Cash can be withdrawn at sight, without any pre-
condition or fees. Its net asset value is published
on a daily basis in all our branches.

• Tax free return

Tunisie SICAV's return is totally tax free. Unlike
banks’ savings accounts, individual investors are
not submitted to any tax withholding or any
complementary taxes at the end of the year.
 Sicav Plus
• Prudent Management
SICAV PLUS is a hybrid mutual fund, it is the
appropriate instrument for mid term investments
as it invests in bonds and listed stocks.
• High Return
Besides revenues from their fixed income
investments, investors perceive dividends and
capital gains from their equity exposure. In 2009,
the net return of SICAV Plus stood at 4.10%.
 Sicav Plus
• Total Liquidity
Cash can be withdrawn at sight, without any
pre-condition or fees. Its net asset value is
published on a daily basis in all our branches.
• Profitable Tax System
SICAV PLUS capital gains and dividends are tax
free. This advantage is reflected in its return.
Unlike bank savings accounts, individual
investors do not pay withholding taxes
 SICAV Entreprise

• Low Risk
SICAV Entreprise is a mutual fund dedicated to
institutional investors. It invests in fixed income
instruments, mainly corporate and government
bonds. It has thus no exposure to the risk of
equities.
• Total Liquidity
Funds can be withdrawn at any time without any
prior notice. Shares can be redeemed at a daily
net asset value at any of our branches and no
fees or taxes are charged.
 SICAV Entreprise
• Profitable Tax Treatment
SICAV Entreprise will distribute one dividend per
year. Dividends are paid free of taxes. The
distribution day dividends, the amount of
dividends is deducted from the Net asset value.
• Reasonable Return
Based on the opportunities that the Tunisian
bond market is offering, it is likely that return on
SICAV Entreprise will stand above bank saving
accounts' return. In 2009, the net return of SICAV
Entreprise stood at 4.05%.
 Stratégie Action SICAV

• Presentation
It is a hybrid mutual fund, initiated on March 1st,
2006, managed by ‘Smart Asset Management’, an
independent Asset Manager, and exclusively
distributed through Tunisie Valeurs network.
• Investor's Profile
This mutual fund is targeting more sophisticated
investors who are aware of the risks associated
with equity investments, and whose investment
horizon is above three years.
 Stratégie Action SICAV
• Investment Strategy
The fund’s portfolio will invest in:
• - 30 to 70 percent of assets will be invested in listed equities.
• - 10 to 40 percent in fixed income instruments
• - 20 percent in cash instruments.
• Return
In 2009, the net return of Strategie Actions SICAV stood at 32.35%.
• Attractive Tax Treatment
Stratégie Actions SICAV is a dividend distributor fund. Investors do
not pay withholding taxes or any complementary taxes at the end
of the year on the dividends earned. This tax treatment applies
both to individual and institutional investors.
 Discretionary Management Account
(CGP)
• This account is a private management account.
You can deposit funds in your account at any
point in time but you will need to wait at least
one year, starting from the opening date to
withdraw cash. Your investments will be invested
in our fixed income mutual fund until an
investment opportunity in listed stocks, selected
in advance, is available. Discretionary accounts
are mainly invested in listed stocks thus having a
direct exposure to risk.
 Tax Deductible Savings Account (CEA)
• What is a Tax Deductible Savings Account ?
In the tax deductible account, your investment will be
managed for a period of at least five years, with a
minimum of 80% exposure in listed stocks and 20% in
Government bonds. In return, the account will profit
from a special tax treatment.
• Withdrawals
Dividends, capital gains and interests may be
withdrawn at any time whereas the saver's
investments having benefited from the fiscal advantage
have to be permanently invested in stocks for a period
of five years starting from the date the fiscal advantage
starts to run.
Tax Deductible Savings Account (CEA)
• How does it work?
This type of account is exclusively for individual
investors. Cash deposits will be immediately
invested in listed stocks and investors are allowed
to sell their holdings at any point in time on
condition that they invest the proceeds in other
listed securities. The choice of stocks is made
either by the client or Tunisie Valeurs.
Dividends and capital gains are tax free for
individual investors. In addition, 100% of the
amount invested in CEA (up to 20,000Tnd) is
deductible from the client’s taxable income.
 Treasury Account (Compte Tresor)
• The Treasury Account gives clients the opportunity to invest in
Tunisian Treasury Bills. This investment is: Risk-free, Profitable and
Totally liquid

• The primary dealer's desk can subscribe on your behalf to:

- Treasury bills, up to one year
•
• - Fungible Government Bonds, up to fifteen years
By contacting account managers, you can inquire about applicable
rate for each investment horizon.
Your funds are immediately invested by taking into account the
term you specify.
 Tax Deductible Investment Fund (FCP
CEA Valeurs)
• The Tax Deductible Investment Fund 'FCP CEA
VALEURS' is a tax-deductible investment that
has the exact same caracteristics than the Tax
Deductible Savings Account. However,
this investment alternative offers subscribers
the benefits of the Collective Management.
• Its net return stood at 36.34% in 2009.
 FCP Valeurs AL KAOUTHER

• "FCP VALEURS AL KAOUTHER” is a fund for

persons and legal and institutional investors
seek of the benefits of collective
management, ensuring compliance with the
investment rules of Islamic finance.
Furthermore, a Shari'a supervisory
committee, represented by Cheikh Mohamed
Mokhtar Sellami, was formed to monitor the
compliance of products and procedures with
the principles of Islamic law.
 FCP Valeurs AL KAOUTHER
• The "FCP VALEURS AL KAOUTHER” will be
invested as follows:
• Minimum 50% of assets in shares of listed
companies.
• Maximum 30% of assets in cash investments.
• A high proportion of 20% of assets in cash and
cash equivalents.
 FCP Valeurs AL KAOUTHER
• For the portion invested in equities, "FCP
VALEURS AL KAOUTHER” aims to put in stocks
with the following characteristics:
• Growth opportunities (sectoral and intrinsic)
promising medium-term.
• A recovery considered attractive compared to the
market (PER and dividend / yield multiples of
Enterprise Value).
• Respect the rules accepted by the COMMITTEE
OF CONFORMITY (Passing through several filters
sectoral, financial ...).
 FCP Valeurs AL KAOUTHER
• The subscription price is equal to the Net Asset Value.
The redemption of units is possible at any time
throughout the life of the Fund. However, for any
purchase made before the expiry of three years, the
price will be reduced by exit fees:
• 3% of net asset value and that, in case of an exit in a
period not exceeding one (1) year from the date of
subscription.
• ….
• No exit fee if the holding period is more than three (3)
years.
 Tunindex Evolution
• In 2009, the Tunindex absorbed the losses recorded over the last
quarter of 2008 and managed by the end of April 2009 to climb
back to the same levels as in September 2008. Since then, it has
continued to hit new records, closing at an all-time high of 4 291.72
vs. 2 892.40 at the end of 2008 for an annual increase of 48.38% vs.
10.65% in 2008.
• The TUNINDEX rose by 25.5% from its highest peak in 2008,
recorded on 9 September. Since it was launched in 1998, the
TUNINDEX’s average annual yield is 12.9%.
• Throughout 2009 the TUNINDEX recorded only two monthly
decreases, the first in July (1.35%) and the second in October
(0.08%). On the other hand, the highest monthly increases were
recorded (from highest to lowers) in April (9.03%), June (7.77%),
September (7.68%),
 Stock market capitalization
• In 2009, the impact of higher prices for most
listed companies combined with the higher
number of sharesissued by these same companies
increased the level of stock market capitalization
by 46%, bringing it to 12 227 million dinars vs. 8
301 million at the end of 2008, representing
22.9% of GDP vs. 16.5% at the end of 2008.
• 89.41% of the increase in stock market
capitalization in 2009 was attributable to price
trends, 7.54% to capital increases, and just 3.05%
to new listings on the market.
 Stock market capitalization
• Although its share in stock market
capitalization went down in 2009 to 69%, the
financial sector significantly increased its
market value, rising to 8 486 million dinars vs.
5 984 million at the end of 2008, followed by
services to consumers with a relative share of
11% worth 1137 millions de dinars, then
consumer goodswith a relative share of 8%
worth 983 million dinars.
Trading of securities listed on the stock
market
• The value traded on the stock market fell from 2 109
million dinars in 2008 to 1 814 million in 2009, for 246
and 250 days of trading respectively.the value of
transactions post an increase of some 7%, with daily
average up from 6.8 million dinars in 2008 to 7.3
million in 2009.
• Trading involving the stock exchange’s official list went
up in 2009 in terms of number of stocks by 10% to
189.5 million vs. 171.8 million in 2008. The daily
number of trading transactions increased by 24%, from
1 277 exchanges in 2008 to 1 580 in 2009.
 Performance of listed securities
• In 2009, 47 stocks posted positive yields, 23 of
which performed better than the TUNINDEX.
• The highest yields were for the Tunisian glass
company SOTUVER (+380.7%), the Teboulba
agricultural production company SOPAT
(+245.8%), the GIF filter company (+175.9%), the
apparatus and electrical material industrial
company SIAME (+151.4%) and the supermarket
chain MAGASIN GENERAL (+135.6%).
• There were decreases for just six listed stocks.
 Performance of listed securities
• In 2009, 39 companies listed on the main market
(out of 50) distributed dividends, compared to 35
listed companies and a total of 49 in 2008. 15
companies distributed the same amount per
share as in 2008, nine companies paid higher
dividends, and nine others paid lower dividends.
• The dividend yield for the stock exchange’s official
list (distributed dividends/stock market
capitalisation) as of 31 December 2009 came to
3.3% vs. 3.4% at the end of 2008.
 Foreign holdings
• Acquisition of listed capital securities by foreign
investors came to 137 million dinars in 2009 in the
amount of 137 million dinars, 8% of overall trading.
• On the other hand, transfer of capital securities by
foreigners came to 257 million dinars, representing
15% of overall trading.
• Positive between 2002 and 2007, i.e. for six straight
years, the balance between acquisitions and transfers
carried out by foreigners remained negative in 2009,
with a difference of 120 million dinars in favour of
transfers, after recording a negative difference of
48million dinars in 2008.
 Session indicators
From 28/03/2011 To 01/04/2011
TUNINDEX Index 4 394,79
Change (%) - 1,20
Trading Value in official quote 2 151 066
Trading Volume 24 857 709
Number of Transactions 5 532
The highest stoks 13
The lowest stoks 37
 References

• Tunisievaleurs.com
• Bvmt.com
• Bct.com
• wikepédia