Sharp Decline in Number of Companies Listed on the Stock Exchange of Mauritius

Fianna Jurdant, Senior Policy Analyst at the Organisation for Economic Cooperation and Development (OECD), has highlighted a concerning trend in the Stock Exchange of Mauritius, noting a substantial decline in the number of listed companies.

In 2019, there were 62 companies listed on the SEM, and this number has been in flux since the exchange’s inception, growing from a mere 6 in 1989 to 54 by 2022.

However, between 2019 and 2022, there has been a decrease in the count of publicly traded companies.

This trend is significant as the stock market is commonly regarded as an indicator of a nation’s economic health.

In 2022, MCBG held the lion’s share of the market turnover, accounting for 30%. As for trading volume, SBMH, another banking entity, took the lead with a whopping 111,384,172 shares exchanged.

Jurdant attributed this drop in the number of publicly traded firms to several factors. These include the reduced cost of financing through borrowing, easier access to private capital, and an uptick in mergers and acquisitions, leading to market consolidation.

Furthermore, some smaller enterprises may find the stringent disclosure and reporting requirements associated with stock exchange listing too onerous.

Source: Defi Media