Capital Markets

Operational since 1999, the Algerian stock exchange, Bourse d’Alger, is characterised by low levels of activity and liquidity, with just three equities and two corporate bonds currently listed and government bonds accounting for over 90% of trading. The total volume of transactions on the bourse was €36.8m in 2011, down from €47.8m in 2010. Trading of government bonds accounted for €33.7m of this. Authorities are working on a project that will significantly overhaul the framework of the exchange to boost activity. Implementation of the reforms is due to begin in 2013. Plans to establish an exchange for small and medium-sized enterprises (SMEs) are also close to being finalised. If planned reforms go ahead, the market could see a notable expansion in the mutual fund and SME fields in particular. This chapter contains an interview with Mustapha Ferfera, Director, Bourse d’Alger.