On March 12, 2025, no trades occurred at BVMAC despite over 3,000 shares available, indicating low investor interest. Major Cameroonian firms such as Socapalm and SEMC had unsold shares, reflecting a disconnect between positive financial reports and market activity. Analysts suggest that large sales might raise caution among investors, impacting transaction volumes.
On March 12, 2025, no trades occurred at the Central African Stock Exchange (BVMAC), which operates within the CEMAC region from Douala, Cameroon. The trading bulletin indicated over 3,000 shares were available, including more than 1,000 from Cameroonian companies. This lack of activity highlights a troubling trend despite robust financial performances from these firms, raising concerns about investor interest.
A significant number of unsold shares were from noteworthy firms. Socapalm, Cameroon’s premier palm oil producer, listed 544 shares without a buyer. Additional unsold shares included 282 from SEMC, the mineral water producer, 80 from Safacam, and 212 from La Régionale Bank. These figures illustrate the struggle to attract investments despite strong performance reports.
There remained a disparity between demand and supply, with only 132 shares requested against 1,118 on sale. The BOC noted that although there were buy and sell offers for certain companies, transactions did not occur due to pricing discrepancies. Investors seems hesitant as expected buying prices were lower than sellers’ expectations.
Financial analysts speculate that large share offerings from profitable companies typically trigger caution among investors. An abrupt influx of shares for sale might signal potential instability or issues within those firms, which may deter buyers. This uncertainty hampers investment activities despite favorable financial outcomes.
The situation at the BVMAC demonstrates a paradox where profitable companies struggle to find buyers amidst a significant number of listed shares. The evident lack of transactions can be attributed to pricing disagreements and investor cautiousness. While companies continue to report strong financial performances, the market’s reaction suggests a more profound concern regarding the implications of large sell-offs.
Original Source: www.businessincameroon.com
