Cameroon Stock Market Faces Challenges Amid Strong Company Performance
Cameroon’s stock market exhibited no trading activity on March 12, 2025, despite over 3,000 shares being available. The largest blocks of unsold shares were from Socapalm and SEMC, with 544 and 282 shares, respectively. Weak buyer demand, coupled with price disparities, contributed to this lack of transactions, raising concerns about investor interest in the market.
The Central African Stock Exchange (BVMAC), located in Douala, Cameroon, recorded no trades on March 12, 2025. During this session, over 3,000 shares were available for purchase, including more than 1,000 shares from Cameroonian companies. However, no transactions occurred, highlighting a significant lack of buyer engagement despite strong company performances.
Socapalm, the leading palm oil producer and part of the Luxembourg-based Socfin Group, had the largest block of unsold shares, totaling 544. Other unsold shares included 282 from SEMC, a mineral water company under the French Castel Group, 80 shares from Safacam, another Socfin subsidiary, and 212 from La Régionale Bank, a local financial entity.
According to the BOC, “Despite buy and sell offers for Safacam, Socapalm, and SEMC shares, no transactions were completed because the buying prices were lower than the selling prices.” Additionally, only 132 shares were requested out of the 1,118 available for sale, indicating weak investor demand and interest.
Financial analysts cite that an oversupply of shares from profitable firms can lead to investor hesitance. Rapid selling may signal caution, causing potential buyers to refrain from making purchases. The BOC did not disclose specific reasons behind this lack of market enthusiasm, leaving room for speculation and analysis among market observers.
The trading session on March 12, 2025, at the BVMAC reveals a concerning trend among Cameroonian stocks. Despite the leading companies’ strong financial records, purchaser apathy persists due to price discrepancies and overselling fears. Analysts suggest that careful investor sentiment and market dynamics play significant roles in this underwhelming demand for shares, reflecting broader implications for market health moving forward.
Original Source: www.businessincameroon.com
